Here's President Bush wishing Americans and Spaniards everywhere a Happy Columbus Day.
I'll leave you with one more, hat-tip to the right Rev. Coyote for Uncle Sam.
Until next time... pant pant, snarl snarl.
Monday, October 13, 2008
Fun With Fingers
Federal Reserve Chairman Ben Bernanke indicates the total dollar value of all "untainted" assets currently on the U.S. Central Bank's balance sheet. Hat-tip to Tim for the photo:
I'll leave you with one more, hat-tip to the right Rev. Coyote for Uncle Sam.
Until next time... pant pant, snarl snarl.
I'll leave you with one more, hat-tip to the right Rev. Coyote for Uncle Sam.
Until next time... pant pant, snarl snarl.
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Mr. McCain recently proposed what really amounts to a bail out for home owners who got in over their heads with their mortgages. He plans on helping them out; only will cost a paltry $300 billion…he thinks. And, that’s on top of the estimated $700 billion for the Wall Street “rescue.” Oh, and let’s not forget the cost of the wars in Iraq and Afghanistan. What figure should we estimate for that in 2009? I say, let’s go conservative and come in for a mere $150 Billion. A bargain. Then, of course, there will be the 10s of billions of additional money needed in 2009 that will be funded through continuing resolutions.
What’s my point? It’s this: every one of the above bills will become due in Federal Government Fiscal Year 2009 (remember, the Federal Government fiscal year starts in October and ends in September – not that it really matters to this discussion). Adding them up (and evening ignoring the likely additions from continuing resolutions), the total is $1.15 Trillion dollars. And, catch your breath, that is in addition to the estimated $425 billion deficit the Bush Administration predicted for Fiscal Year 2009 (FY09).
I only can hope that, at this point, you are saying to yourself “$1.575 Trillion in deficit spending in FY09? That’s outrageous.” But wait – there is more. The $425B was based on pre-crisis economic forecasts of revenue predictions (probably not worth a grain of salt at this point), plus it was lowered by the roughly $165 billion “borrowed” from the Social Security fund surplus for the year (remember that fund that the Bush Administration is so eager to persuade us was a shipwreck), and ….well, the list goes on too long. Actually, there are those who predict that a more factual calculation of the projected federal debit would be roughly $ 900 billion dollars. And, again, that was before the economic crisis. So, using that figure, the estimated deficit for FY09 would be $2 Trillion. Staggering.
Of course, some of the predictions above may turn out wrong. After all, say the Federal Government does actually shell out $700 Billion for Wall Street. It will be able to sell some of the assets it receives, thereby returning some money to the treasury. So, the actual FY09 deficit may not be as bad as some would predict. And yet, it also could be worse. Frankly, at this point, I don’t have a forecast to offer that would be based on anything more than my gut feeling, but my sense is that the end total deficit will be bad. Very bad.
I began this write up with an apparent criticism of Mr. McCain. It only would be fair to admit that he is not the lone offender in all of this. His example just happened to serve as a convenient introduction to the subject. No one of any political stature is being totally honest with the American public about the situation. But, here is the truly deep, dark, forbidden secret: the American public really doesn’t seem to want honesty at this point. It just wants I placebos.
I don’t see the current fiscal problem so much as being an economic crisis as it is a moral failing. When I write of a moral failure being at the heart of our financial ills, I admit I am -- at some level -- referring to what I inadequately would describe as the basic moral principles as expressed in the Bible (which may lead some of you to brand me as some weird religious fanatic). Yet, setting religion aside for the moment, my point would be that the basic foundation for a moral, which by my definition implies a functioning, society is the manner in which we interact with each other.
My main criticism is directed towards the moral failings of greed, corruption, even basic theft (although we too often "put lipstick on the latter" and call it something else). I believe none of the so called economic initiatives currently ongoing will bring a real resolution to the financial situation. Oh, there may be some relief, and with it, some sense that we have recovered.
But, the basic rot will remain, and in time, reassert itself. And, when it does, it will have spread even deeper, and will do that much more damage. We've had that cycle several times in recent decades: getting just enough of the rot out to make things look OK, then seeming to do just fine until the next collapse, when we do it all over again....and again...and again.
I think we have to face facts: the American lifestyle, and (dare I say it) the "American Dream" has to be reshaped. I know people who will get furious over the suggestion. "How can you say something so stupid like we have to end our access to larger homes, cars, cheap gas, easy credit, etc.?" Well, I am saying it because many of us will have to do so. It's the same situation as a millionaire who spends all his money, borrows more, spends that, then ends up with nothing. I am sorry: at the end of this process he is broke. Yes, he once did get to live large, but he just doesn't anymore. End of story. And what is true of people is true of nations. Get over it. We have to adjust to the new reality.
My wife recently suggested to me a great idea. She very much is into "green living:" recycling, renewable energy sources (we now are a three hybrid car family), composting, etc. One factor in all of this is her fixation on "green" TV programs (of which there is a surprisingly large number on satellite TV). One such program was about Greenburg (I think that is the correct name – it’s close), Kansas, a dying mid-west town that was completely destroyed by a
series of tornadoes. The leadership of the community, possibly taking a lead from the town name, decided to rebuild, and base the economy on renewable energy. Of course, it is too early to tell how this will work out, but I do think they have the right idea: the town was dying
out anyway -- take a risk to be competitive in the emergent economic environment.
I only can hope the current economic collapse gives people enough of a pause to create an opportunity to do the same thing in America. This is a leap that would not have been done had we appeared to be bumping along just fine, but it now may be possible since we seem to
have a definite break in our past economic continuum.
My hope as a patriot is that my beloved country will seize this opportunity to rethink what type of nation we need to be to be poised to continue to be the economic -- and social -- leader of the 21st Century. Quit focusing on those businesses that, in essence, are bridges back to the past century.
Of course, rallying the nation to make that type of change requires leadership.....
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