The U.S. economy shrank at an annualized rate of 6.2 percent in the final quarter of 2008, almost double the 3.8 percent contraction in Gross Domestic Product (GDP) estimated by the Commerce Department last month. GDP is the sum of everything of economic value created in the country during a year.
President Barack Obama outlined a financial plan in his February 24 address to Congress that meshes eerily with the fascist economic plan Benito Mussolini enacted after his ascent to power in Italy before the Second World War.
President Barack Obama today signed into law the $787 billion “stimulus” bill — a.k.a. the American Recovery and Investment Act — that is supposed to help jump-start the economy. And despite the gargantuan size of this measure, it is actually just an installment in the administration's overall economic recovery plan.
Why doesn’t someone in the mainstream media take Presidenat Obama and his spokesmen to task for their ridiculous pledges not to repeat “the same failed ideas that got us into this mess in the first place”? Bush’s failed economic policies can be summed up as: 1. spending increases, 2. tax cuts and, therefore, 3. record deficits. And Obama’s economic “stimulus” plan is: 1. spending increases, 2. tax cuts, and therefore, 3. record deficits.
As the massive new stimulus bill, which President Obama is now preparing to sign into law, was undergoing consideration in the Senate, Americans wondered how much the final price would be. At one point during Senate deliberations, House Majority leader Steny Hoyer, responding to concerns that the Senate version was already tens of billions of dollars larger than the House version, sheepishly told reporters that "the objective is to have a bill of less than $900 billion." Yet less than 24 hours later, the cost of the Senate version of the stimulus package was well over $900 billion and continuing to rise.
On his January 29 TV show, Glenn Beck drew national attention to a relatively obscure graph of our nation's "monetary base" (a narrow definition of money supply, also known as M0) maintained online by the Research Department of the St. Louis Federal Reserve. The reason for the special attention was the dramatic hockey stick shape of the graph that developed during the last few months of 2008. Beginning about September the usually stable graph of monetary base vs. years shot virtually straight up for the remainder of the year.
In a speech in the Treasury’s Cash Room today, Treasury Secretary Timothy Geithner unveiled yet another initiative to stop the financial crisis in its tracks. “Right now critical parts of our financial system are damaged,” Geithner told his audience, few of whom, in all likelihood, had any idea how America’s financial system works. “Instead of catalyzing recovery,” Geithner continued, “the financial system is working against recovery and that's the dangerous dynamic we need to change."
Is the International Monetary Fund headed toward becoming the Federal Reserve of the world? Although one-world elitists in political and banking circles have been promoting the idea for many years, it has taken the current global economic crisis to provide the appearance of urgency and legitimacy needed to make the Global Fed scheme sellable to the public.
What began early last year as a "credit crunch" and an "economic downturn" is now being characterized as a "long, severe recession." Once upon a time, such a crisis was known as a "depression" before Americans became squeamish about such stark language.
Should the stimulus bill be amended to place more emphasis on spending, or should it instead be amended to place more emphasis on tax cuts? That question defines much of the debate on the bill that passed the House without any yea votes from Republicans and is now before the Senate.
Common sense tells us that government cannot resuscitate the American economy and restore it to good health by spending more money and going further into debt. The government cannot spend money for its "bailout" and "stimulus" programs, after all, without siphoning the money out of the economy in the first place.