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Senate Bailout Plan
Having their heads handed to them in the House, the politicians now are trying to ram this thing through the Senate. Originality not being the strong suit in Congress they have stuffed some tax cut goodies in to buy us off. Problem with that idea is anyone who is paying attention knows those tax cuts have a shelf life of about 35 days, or to be specific, until after the election. There is no way they are going to do this without picking our pockets. Sure they are predicting doom if this fails but doom is coming anyway. We are better off dealing with it without first having the additional burden of this bailout hoisted on our shoulders.
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The tax plan passed the Senate last week on a 93-2 vote. It included AMT relief, $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana, and some $78 billion in renewable energy incentives and extensions of expiring tax breaks. All told, it would cost about $112 billion over five years.
Convoluted as this is,why not just do this and not shovel the $700 Billion into the rat hole? As I said above, They want the money and they can ditch the tax stuff after November 5th.
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Economics, Democrats, Politics,
posted by Xyba | 8:18 AM
1 Comments:
|I wouldn’t be surprised if the recent overhaul of bankruptcy legislation was designed for this economic situation; it turns human debtors into indentured servants. And that is necessary for the following reason:
The ’sssssss’ we are noticing with this credit crunch is just the leak before the big burst. This credit bubble has been inflated by a logorithmic base 10 scale of dollar creation.
The practice of using 90% of ‘real’ wealth for lending that can then be invested and re-deposited for recycling again and again for more and more credit probably has the same effect of simply printing more money. The difference between those two ways of creating wealth is that creating money by credit inflation redistributes wealth for the benefit of financiers. And printed money is real; not fake.
This credit bubble burst should, then, be creating a shortage of money. And the cure may be as simple as the government printing more money. The only problem with that scheme is that there would not be another bubble to burst to correct for over-inflation. Printed dollars don’t evaporate away like the ones the financiers are trying to sell taxpayers now.
And that is why those who have engineered this bubble need those new draconian bankruptcy laws. Only wage earners can turn this fake money into real wealth. And that is why the Bush administration and other supporters of the great bailout plan are adamantly against giving bankruptcy judges the right to restructure debt according to who is most responsible for making bad loans.
Bryant Arms
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