Paulson plan could cost $1 trillion – Mike Allen – POLITICO.com
So how bad is it really, this crisis? So bad that the Treasury is talking about a bailout that could cost one trillion dollars. One trillion dollars, you can imagine the images which the idea of one trillion dollars elicit: of an evil movie villain asking for a ransom of impossible and unreasonable enormous proportions.
I was reading the reviews for this page, and found a really good question posed by one of the stumblers: “I just have one question: Where are we getting the money from to cover these bailouts???”
Where is this money going to come from? Now this is a really good question. Well, here’s what I’ve read by stumbling around: The States is already in debt to Japan for half a trillion, to China for ANOTHER half a trillion, to the UK for a quarter of a trillion, and so on. And I suspect there’s another $1,000,000,000,000 that can be squeezed out of all corners of the globe for the bankers on Wall Street (and all their support staff outsourced to call centers in Asia) to keep their jobs.
This is really serious business. Sure, the US government is capable of scraping together a trillion (though I suspect they will not cut back on military spending at all), but all of that money has got to be paid back at some point. Until that day comes, it will be another rope hung around the necks of the Americans. From what I understand, most of the public income tax that Americans pay is actually used to pay interest on the country’s debts, rather than being about the services. I’m not a financial expert, so I can’t really verify the information, but it seems to me that all these fat bank pigs will keep their huge bonuses, and the Americans will be paying for it.
And I mean, really — there isn’t much you would rather do with $936 of your tax money than bail out AIG, right?
Seriously. This is utter socialism, but done in reverse. They destroy the savings and income of “the working class” to guarantee a soft parachute landing for the “investor class” who aren’t even productive. In any other country — think France, any Latin American country, Spain, the Philippines — there would already have been general strikes by now, ready to oust the current government, and there would be people rioting in the streets over this “bailout” of these economic fat pig parasites at the expense of the rest of the people. The issue should be an eye-opener to the American people, but I think it may be hard to do, with the majority of the population so certain and steadfast against free thought.
Another thought is that they’re just going to inflate the fuck out of the US economy. Because the debt is valued in USD, so inflating now just makes paying back money later easier. While the Treasury cannot and does not just “print money”, here’s what I just learned: the Federal Reserve is a private institution, unrelated to the Treasury, except that the Treasury borrows all its funds from the Fed. The Treasury cannot and does not just “print money” alright, but the Fed can and does issue as much “credit,” as it thinks it needs to to prop up the stock market, etc, etc. That’s why those hundreds of billions of dollars were suddenly “available” to bail out, even though the US Congress had not even appropriated money from the budget.
It’s not YET inflationary as long as it all remains in the stock market, which is why the Fed is pumping close to a billion dollars a day of credit into the markets, at least that’s what I read. Of course, if the gamble fails, and should investors pull out of the markets en-masse anyway, then those credits will become liquid — and the value of the dollar will continue to nosedive, due to a sudden enormous increase in the actual money supply.
But don’t worry. I’m sure they’ll blame it on the Democrats, or terrorists, or something else.