General Motors and Chrysler submitted “financial viability” plans to the U.S. Treasury on February 17 that included combined requests for another $18.6 billion in federal bailout funds — $16.6 billion for GM and $5 billion for Chrysler.
On Tuesday, February 18, President Barack Obama achieved one of his first major goals in office by making his $787 billion stimulus plan a reality. TheWashington Post reported: "President Barack Obama ... signed into law a plan meant to create jobs, encourage people to spend money and in general feel better about the economy." Is it the economy Obama wants the people to feel better about or is it the president himself?
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.
Will the banks be nationalized? That question would have seemed preposterous prior to the $700 billion Troubled Asset Relief Program to bailout major financial institutions. But with the TARP money comes federal control, and that control could be strengthened to the point of full-blown nationalization, particularly if the already congressionally authorized $700 billion is deemed insufficient to “rescue” the banks.
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.
Newsweek magazine published the following headline on the cover of its February 16 issue: “We Are All Socialists Now: The Perils and Promise of the New Era of Big Government.” Of course, it’s hard to imagine that we have only now entered the era of “big government” — weren’t we there already? But there is no doubt that both money creation by the Fed and spending by the federal government are accelerating to finance the proliferating bailout and stimulus programs.
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.
The credit rating of the U.S. government is falling fast. Treasury debt mechanisms have crashed in bond markets this year, forcing Treasury officials to offer a spiral of steeper discounts at auction. Investors are becoming increasingly reluctant to purchase the notes in the face of a rising flood of debt that will be floated by the Treasury Department this year.