Tag Archive for ‘Bailout’
In writing the $789 billion stimulus bill, Congress revealed that, for all its “Buy American” blather, it does not truly put America first. It does not believe that 10 million jobless Americans, in the country their fathers built, should receive any preference in hiring 12 million to 20 million illegal aliens who broke into this country and owe her no loyalty, allegiance or love.
The Bush-Obama bailout-stimulus plans are not going to work. Both are schemes hatched by a clique of financial insiders.
Congress is sending a message: The rebuilding of America is to be a project of, by and for Americans, not outsourced. Sen. McCain’s free-trade amendment, to strip all Buy American provisions from the bill, was routed 65 to 31. The reaction of Barack Obama, a NAFTA skeptic in 2008 with bumper stickers that read, “Buy American, Vote Obama,” was to genuflect to the gods of globalism and recant his economic patriotism.
The thing is, we can’t ever do without the rich, bitterly as we may despise them. Wealth, proportionate or disproportionate to effort and merit, is what comes of exertion. If you want to abolish wealth, abolish exertion, but you probably wouldn’t want to, because then life would stop. Everything would run down.
Does the public stock market actually serve a purpose? To some free-market zealots, the answer is obvious: The public markets increase liquidity, and this enables fledgling businesses to get off the ground by allowing them access to capital. Moreover, we can all reap the benefits of capitalism’s “creative destruction” and become a nation of investors (as opposed to one of actual producers). For well over a decade, the public bought this line with increasing gullibility.
Obama and the Democrats are taking a historic gamble, not only with their careers but with the country. If this monstrous stimulus package, plus the trillions in hot money, do not work; if the two ignite rampant inflation, rather than real growth, we are all out of options. The toolbox is empty.
“The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic congressional leaders conceded that they would face potentially insurmountable Republican opposition,” reported the New York Times last Friday.
Wow! The entire country is steamed up over the Republicans bailing out a bunch of financial crooks who have paid themselves fortunes in bonuses for destroying America’s pensions. Why do Democrats want to protect Republicans from further ignominy by not giving them the opportunity to vote down a bailout for workers? Quick, someone enroll the Democratic Party in Politics 101.
To hear the media tell it, arrogant corporate chiefs failed to foresee the demand for small, fuel-efficient cars and made gas-guzzling road-hog SUVs no one wanted, while the clever, far-sighted Japanese, Germans and Koreans prepared and built for the future.
Understandably, Republicans are seething. When Hank Paulson demanded $700 billion to haul away the trash in the dumpsters of JPMorgan Chase and Goldman Sachs—assuring us we could hold a garage sale of the junk—they rebelled. They acted as the nation, by 100 to one, demanded. They killed the Wall Street bailout. The Dow quickly sank another 1,000 points, and, charged with criminal irresponsibility by the elites, the GOP buckled, reversed itself, rescued the bailout—and was wiped out on Nov. 4.
Now we hear from Paulson that the $700 billion Congress voted will not, after all, be used to buy up all that rotten paper on the books of the big banks. Some banks are using the cash to buy other banks.
So Republicans are right to be enraged. They are victims of the biggest bait-and-switch in political history. But they are now about to do something terminally stupid.
I think not. Reagan brought America back from discouragement, but it didn’t stick. Subsequent administrations erased Reagan’s accomplishments. Reagan defeated stagflation and ended the Cold War, producing a peace dividend to be divided among taxpayers, social programs and national debt reduction. Without the Soviet Union as a check on neoconservative ambition, however, the neoconservatives launched America on an unrealistic path of world hegemony.