This country needs to borrow $2 trillion dollars to fund the spending on the books for 2009. Can we do that?
China, our big lender, is opting out. That leaves the Middle East. Their opinion of our credit worthiness is waning. That taps out our options. If the treasury buys debt by printing money, as they have been doing lately, what does that do to the economy and the dollar? If our debtors begin cashing in their dollars, what does that do to our need to borrow?
The only real solution is to raise the interest rates to attract borrowers. That is already happening. Recent treasury auctions have shown the public will not buy any more notes at rock bottom interest. Suddenly, the new fear in Washington is inflation.
Most of us have thought that the reckless spending would create problems down the road, but these recent events show it is presenting problems already.
Unemployment figures this week will show the current number to be 8.9%. This is without the Chrysler and GM numbers soon to hit. They and their fallout could move this to over 9.0% by next month.
Suddenly, financial wizards are recommending we buy Asian stocks. Is a fundamental shift in global economic power underway? It seems to be a trend.
President Obama made a comment that Wall Street may no longer by the engine that drives the economy in this country. I presume he intends to make Washington the engine to replace Wall Street.
Is it no wonder that China no longer wants to be a lender? In short order we have destroyed the investment banking business, the auto industry and many of our biggest banks. The insurance industry is in trouble.
Looming is the commercial mortgage problem. And, a possible credit card problem. A big red flag rarely mentioned is the FHA. For the past few years this agency that insures 100% of the mortgages they underwrite is behaving like Freddie and Fannie behaved. Suddenly, they are showing alarming numbers of mortgage defaults. With a 3% down payment, they took on more than their share of sub prime mortgages. Government pension funds are in trouble.
Finding this $2 trillion is becoming a big problem. One that will have a big impact on the economy in 2009.
Where are all the economists in this country? Are they being muffled by the media. Like MSNBC which has now lost 50% share. Is anyone in this country really watching the store, or is just the Chinese who get it straight?
I'm betting none of you know there is an organization to offset the ACLU. Conservative causes have been demolished for years by the ACLU. The ACLU now has the President of the U.S. and a congress to help with their work.
For the life of me, I have wondered why there was no organization in place to counter the ACLU and their barrage of lawsuits that would take us to a socialized state and destroy our constitution.
This organization, the American Center for Law and Justice is designed to do just that. They have filed papers to get documents to show what Nancy Pelosi knew about water boarding. If they refuse to release those documents, the ACLJ will file suit in district court to have them released.
This organization can do more for us than letters to deaf politicians will ever do. If you are inclined to make contributions to someone who will do something positive to stop the trend underway in Washington today, this is the place to spend that money.
There are lots of organizations that solicit money to foster conservative causes today. Most, I think operate like the government. The money gets chewed up in the organization and nothing happens. Newt Gingrich's organization is one. They were very proactive in getting the petitions on Drill Here, Drill Now to Washington. They got Obama to reverse his campaign stance on that. But, now nothing is happening. The organization seems to be trying to take your money to foster Newt's political ambitions, not stop Obama's ambitions.
I have high hopes that the ACLJ, through the courts, can be as effective in supporting conservative causes as the ACLU has been in getting concessions and attention for the far left.
Go to the ACLJ web site and see for yourself.
We have many people in this country who could be considered for this distinction. Nancy Pelosi would get lots of votes. Barney Frank has done a lot of damage to our economy with his work in Freddie and Fannie. Obama is mortgaging the futures of our grand kids with his outrageous spending. Any politician in Illinois would get votes.
My nominee is Al Gore. Al left the vice-presidency with a net worth of $2 million. Today, that number is $200 million. Al aspires to make that a billion in the next few years. He will make that happen if everything goes according to Al's plan. You will personally add to that number.
Al has institutionalized consensus science. He has invested in companies that will benefit from the billions in our tax dollars that will be spent on green energy based on the Global Warming scam. He has absolutely no concern about the cost that Cap and Trade will add to your monthly budget. This is not about environmental issues, this is about Al's growing fortune.
Pushing this along is in Al's best interest. He will pursue this regardless of his true personal beliefs. If Al really cared about this, would he continue to have one of the biggest carbon footprints in America? Why not live like Ed Begley Jr. Old Ed rides his bike everywhere, never flies on a plane, and uses zero power in his house. This is a man who believes in a cause. The cause Al believes in is Al's bank account.
At some point down the road when all the Global Warming issues get a fair shake in the scientific community, Al Gore will be the most vilified man in this country. When all the money is spent on the bogus green energy projects and we fall further and further behind on home grown energy, Al will become very unpopular. When we go crazy trying to tap the real energy options we have in this country to dig our way out of a deep economic depression, Al won't be getting any awards.
Will Al care. No. By then, he will be at or close to his billion net worth goal. He'll just pick up and move somewhere else where he can live a nice life.
At that point, you will care. Your life will be seriously impacted by Al's work. Until we get some relief from practical energy here in America, and it won't happen fast, we will be in dire straits. Keep drinking Al's Kool Aid, or get off the "Contribute to Al's March to a Billion" program. When it hits you in the pocketbook, you won't hesitate to drop old Al like a bad habit.
Too big to fail. Remember all the things that have been to big to fail in the past few months. GM and Chrysler, since all their jobs and all the supplier jobs added up to several million jobs. So, we simply threw a few billion of our dollars at them to keep them afloat. Those billions bought some time, but they are still going to file bankruptcy, something they could have done months ago. GM is closing plants for nine weeks this summer. Chrysler says they may close most plants as part of the bankruptcy proceedings.
Does anyone ever ask, why did we spend billions to delay the inevitable? Who would? The media, give me a break, criticize Obama, never happen. The "other party". What other party, the comatose party? Who in that party could get air time to ask the question?
So Fiat will fix Chrysler. Remember when Fiat meant "fix it again Tony" in this country. The cars were pathetic. What does Fiat get out of this? Dealerships in America? A few brands. A pipeline to your tax dollars? Bingo, that's what they get. Using the UAW, the union who caused all the problems, and now continues to own Washington, will keep the cash flowing. Fiat cars, which never sold here will not sell again. Even though they may be the cars Washington wants you to buy. Chrysler cars won't sell either. Ultimately, Chrysler and Fiat will both be gone, but not before our government wastes billions more, because "they're too big to fail".
Suppliers who have remained loyal to Chrysler will also file bankruptcy since they will not be paid for their accounts receivable, or will get pennies on the dollar. Hundreds of Chrysler dealers, successful business people who are pillars in their communities will fail. Their employees will be out of work. The tax dollars the government was counting on from the dealers who make more than $250m a year will not be paid. The government budget shortfall will grow.
Fiat will find negotiating with the UAW is a lost cause. When they can no longer tap the well in Washington for cash, they will pull out. At that time, Washington will be faced with the same decision they faced months ago, let it go or continue to bail it out. It will be the GM choice, have the government own most of Chrysler in partnership with the UAW.
Regardless of what happens in Washington, the consumer is still king in this country. As yet, they can't force consumers to buy specific things. Tax incentives will be tried. This will grossly unfair to the successful car companies, but who cares? It's the same as bailing out your neighbor who can't pay the mortgage. The "no one said life is fair", at least in this country anymore.
If I had to pick between Chrysler making it and GM making it, I would pick Chrysler. At least they have a car company trying to run Chrysler, not the government and the UAW, like GM will have.
But, it isn't going to work. There will be the inevitable bloodbath. No company, no workers, fewer parts suppliers in America, no dealers and a huge new unemployment problem. Plus, the banks who invested in Chrysler left holding another bag. And, billions of your tax dollars gone with another bad idea from Washington.
And, so it goes, as our government tries to throw money at failed causes. Without even attacking the root causes of the problem because there is political risk with that. In the US auto business, it's the UAW that must be fixed. In the educational system, it's the NEA that must be fixed. Both own the politicians, so no fixing gets done. It's shameful.