What happens when you drain capital from the economy and dilute the currency?
For comparison. When George Washington got sick before he died, the doctors thought at the time that sickness was caused by bad blood. So they would put leaches on people and even drain blood right out of the persons body to try and cure them. No sensible doctors today would take this approach and most of them would agree that it was this idiotic treatment that brought our first president to an earlier demise.
Today doctors know better. They know that you need your blood in you to help you fight off whatever infection you have and they know that loss of blood can make you sick and even kill you. So they don’t drain peoples blood any more.
Sometimes doctors put a saline solution into a person through an I V when they have lost a lot of blood. This dilutes the blood but keeps the blood pressure up enough to keep it circulating to critical areas of the body.
Somehow the current Congress has gotten this idea that you can cure an economy by bleeding it with taxes and diluting it with inflation. They look at our sick economy,and tell us the solution to getting things going again is to get more taxes into the government so it can dole out the money and prime the pump in these failing companies. So they Tax and Spend and inflate and pay some bureaucrats to write job descriptions to create new jobs that are "green" and then they say "have patience. You can’t turn around an ocean liner on a dime." You got to give it all some time to turn around and get some steam up again.
They pass new and higher taxes which takes billion of dollars and millions of jobs out of the economy in order to have a fund which they use to create thousands of jobs and then they say, "have patience. It will take some time to get this thing turned around."
Bleeding didn’t work for George Washington. The treatment killed him. Why does Obama think bleeding the economy through taxation and diluting it through inflation is going to cure it?
February 23rd, 2010 at 5:50 am
What happens when you drain capital from the economy and dilute the currency?
Chaos.
February 23rd, 2010 at 5:50 am
If 2004 is any guide: A re-election victory!!!!
February 23rd, 2010 at 5:50 am
Obama isn’t an economist. He’s just a lawyer.
February 23rd, 2010 at 5:50 am
good try, but your information doesn’t support itself
February 23rd, 2010 at 5:50 am
A strategy to create as many "new poor" and collapse the system so that the democratic party has a permanent majority in the political arena
February 23rd, 2010 at 5:50 am
You mean how like the Transnational corporations ship our jobs overseas then put their extreme profits in offshore banks or in risky Wallstreet investments that go boom? Like that?
February 23rd, 2010 at 5:50 am
Bleeding with taxes? Every tax payer at every bracket is paying the lowest federal rates of the last 75 years. Capital gains taxes have never been lower. Just exactly where is this bleeding coming from?
And as for the life-blood of capital, that is exactly what the Financial bail-out salvaged. Without that action the self-inflicted wound the financial industry wrought on themselves by their greed and short sightedness would have bled the nation to death.
February 23rd, 2010 at 5:50 am
What happens when you do that too much though? you might just find a dead American economy in your patients bed.
February 23rd, 2010 at 5:50 am
Many people believe there is a New World Order that wants to run the world as a single government would run all the states, i:e Federal Gov.
In order for this to take over, first you have to destroy the gov and bring each nation to its knees, so to speak, without going to battle.
I am not so sure this can be done, but I believe that is what the Progressives are trying to do.
Every time you turn around, they are doing something that clearly adds to the destruction of the economy. That tries to make an even playing field between rich and poor.
If you want an equal playing field, it is impossible to bring the poor to the same level as the rich, BUT it is possible to bring the rich to the same level as the poor.
I don’t know. but it seems to me we are heading for a major second recession, or depression, from which I do not expect we will pull out from. There will be no bailout on the next one.
February 23rd, 2010 at 5:50 am
Remember the term "stagflation"?
Jimmy Carter and his disaster?
Obama is going to do that in spades.
It has now been acknowledged that under the current administration, even if the economy fully recovers (doubtful) they will still be adding over a $ Trillion to the National Debt every year from now until - - - Forever!
Throw all the bums out of Washington DC and replace them with human beings who have brains, families, concern for the future, and live responsibly.
February 23rd, 2010 at 5:50 am
Deficit spending and monetizing the debt is a recipe for disaster. All one has to do is remember the hyperinflation that happened in Hungary and Germany post-WWI to get an appreciation of where this path leads.
February 23rd, 2010 at 5:50 am
1929 only worse. In 1929, the majority of Americans lived in small towns and on farms. They could at least have a garden and a few chickens to feed themselves and neighbors. That isn’t the same in 2010. It is chaos when companies close or move out of the U.S. losing jobs for millions and millions. Obama and the Democrats are also devaluing the dollar which means inflation.