Monday, February 02, 2009

Tax Payer Life Support

Dang, I knew it was too good to be true. As soon as I give the President Props on his first interview on a major national television network, it just so happened to be the same day I got a hold of the presidents spending, I mean stimulus, I mean recovery plan. To be honest it seems as if it just is a way to package all of the wishes of the democrats in one bill. It may even need to be called the Reed-Pelosi Bill, which would be more appropriate.

Last year. More than 20 banks failed. This year I predict more that that number, if not double will fail. I don’t mind this, except for the fact that the FDIC has to insure these funds and that it is insured with our loot. Now, we have seen our economy shrink 3.8% in the last quarter alone, the largest decrease in 26 years coupled with a GDP that has been constricting anywhere from 5 to 10 percent since 2000 (my math).

Unfortunately, although they call this spending, I mean stimulus plan something needed NOW, it won’t go into affect until fiscal year 2010. Not to mention, it feels as if I am one of the few that has read from front to back the 600 plus pages of Obama’s spending, I mean stimulus plan. The scary thing is that many feel it is better to do something now than to wait to see what happens. I would rather think and do something that works than to TRY and implement a short term fix. Believing that this will fix the economy or will help is like telling me that I should believe in the tooth fairy and Santa Claus.

People, don’t be dumb, the choice is not do something now versus not doing anything at all, but rather if it doesn’t work, what will we do then? Seems nobody knows. I mean Obama calls it a recovery plan, yet he cannot assure the public that spending our money the same way Bush did will work. He speaks of a multi- legged stool, and that this is one leg, but any designer would design all legs for the stool at once. It’s like designing a house with one wall at a time. This just shows me that neither Penn avenue nor Capitol Hill has a clue of how to solve this problem. Being a person without a job, and one who owns his own business, it hard for me to see why it is that folk who got jobs, who’s salary I pay, act as if since they got a check coming in, I can do shit have azzed. I mean increasing food stamps and increasing unemployment benefits is not a stimulus plan.

One concern is that it seems that all of the job creation is designated for the public sector, you know state and local and federal government jobs. This makes no sense given that these aint where the job losses are occurring, in fact job losses at the government level is at about 2 percent. Most of the jobs are in the private sector: the Caterpillars, Home Depots and Astrazenca’s of this great nation. Add to that increasing spending in health care, education and unemployment benefits does nothing to stimulate the economy. What we need is manufacturing, in particular, making a product that everyone else around the globe would want to purchase. India got it down, why don't we?

But check this, the money for the Obama planned is all BORROWED, and the associated administration aint gone tell us that let alone how much that’s gone cost us to borrow this $800 plus billion. This is shady, just as shady as bailing out credit unions to the tune of 80 billion and not telling WE the general public.

We all need to be responsible and look at this seriously for our kids depend on this. The strange thing is that folks who may have voted for Obama, just seem to trust him, like he aint no politician. I wouldn’t be surprised if the same folks aint even read what he has proposed as a stimulus, I mean recovery plan for if they did, the would see it does nothing to solve the problem which is two fold: housing devaluation and foreclosures and debt accrued by synthetic papers in the form of collateralized debt. Especially with us having about a $1 trillion deficit this year - even before this stimulus bill, and with a $10.6 trillion national debt, we may as well just sign over our nation state to China, our largest creditor.

So to all the republicans and democrats and you to Mr. President, don’t piss on me and say it is raining. I as a tax payer am suffering. It was you that said the problem should be directed towards “mortgage relief” but you plan don’t even address this, nor does it reach us regular folk. Like I said, I pay my taxes, but this tax payer here feels like he is on life support.

44 comments:

Connecticut Man1 said...

I don't worry so much about the "stimulus" since it is getting inveested back into the USA's infrastructure. That will help the economy.

What I worry about a lot more is the "TARP" money that is going directly to covering the gambling losses of six banks. There are 8000 banks across the USA that are in no real increased risk of collapse because they did not participate in the gambling (buying and selling credit derivatives OR credit default swaps) and what are we doing? Pumping money into the most crooked and broken banks in the nation. We, as taxpayers, get absolutely ZERO value for that. All it does is provide corporate welfare that subsidizes failure, incompetence and the corrupt.

Lovebabz said...

Well said! and with wit to boot!

Sista GP said...

People need jobs to keep their homes. But how can jobs be created without a demand for the products and services?
Seems there needs to be an international marketing plan to promote the need for US products and services.
Import of funds exceeding cost of export goods.

Torrance Stephens - All-Mi-T said...

Connecticut Man1
I agree with respect to Tarp. But what gets me is that after the roads and bridges are built what then. We should be trying to figure out what we can make and create and sale that other countries would want to buy from us. We used to be citizens, now we are consumers.


Lovebabz
thank u

Sista GP
That is another question that needs to be addressed

Ray Ray said...

very enlightening torrance. i've only read partially into what is supposed to happen. i'm definitely gonna check it out tho. i dont like the way that sounds.

Rich Fitzgerald said...

Man, you gonna make me read that jaink - but 600 pages, wow. I guess they do that to discourage us regular guys from checking in on them.

From what I was hearing, I knew it was garbage too. Sounds to me he is playing politician and repaying political favors. Infrastructure construction jobs and jobs to get us off oil dependency. How many folk around your way get to benefit from those jobs?

On the flip side, I think it would have been worse if McCain would have made it in.

Keep educating.

Oyin said...

hey let me ask something really dumb....why are we failing economy wise..... I mean we make the money...its just paper...cant we just print that ish out and just give it out.

Whats the problem...haha

MrsGrapevine said...

1) Politician is a job, a specific type of job, and it's okay to trust a politician if you know what it is that they do. I think people don't know how bills or passed, authored, or voted on. So saying he's just a politician as if that is bad is an insult. Just like doctors and lawyers have specific functions so do politicians.

2) Let's just not do anything because that's work so well for the last 8 years. Let's wait until the unemployment rate hits 25& then start legislating a plan.

3) The Republicans hope Obama fails and so that decided to not do anything. They are sitting on their hands waiting for an moment to attack, and just want to criticize, but they haven't put anything on the line or brought anything to the table. Because they have no answers either. They trying pass their mess off to the Obama administration.

4) People need to make up your mind: is government a fix all or not. If it's not then the stimulus is just a step. If it is a fix-all, then the stimulus bill is not enough.

5) Our kids future have already been mortgaged. It's going to take 2 years to stabilize from the Bush oversight or under-sight, or perhaps no vision.

P_LOCA said...

OMG!! this world is coming to an end-what is going on?
I would like to say a few things about this whole situation but I think it's safe to not put it out like that.

Princess Katrina said...

This is why I come to your blog, I learn! :)

Princess Katrina said...

I like what Oyin said

Glo said...

What I don't understand is why this is the first time I'm hearing that his plan, include "borrowed" money? Where the hell is the sense in that??? We're SWIMMING in debt. I guess we should have assumed that it was, since we're broke, but still... that's a MAJOR point that should have been in the forefront.

I sure haven't read that 600 page document... but damn it I'm going to!

Third World Profashional said...

Thanks for commenting on my blog and lemme just say, i LOVE yours. You're totally making sense and I'm learning so much already. People are so caught up in Obamania they're not stopping to listen to what he's really saying.

@Oyin yes money's just paper, but it can't just be printed like that to cover a deficit because of a little thing called 'inflation'. Basically all the money that is spent is destroyed after its been in circulation for a while [see the movie 'mad money' great example]. So the money that's been printed is just to replace what's been destroyed. If more than that is put in circulation, there'll be too much money flying around and the value starts to fall until it becomes worthless leaving a situation like the one Zimbabwe is currently experiencing where a loaf of bread costs 10 million Zimbabwean dollars.

Hope that answers your question

ActsofFaithBlog said...

Well this stimulus plan is not the only thing Obama is planning to do. There is also a recovery plan in the works. And if you are unemployed then an extension of benefits is definitely something you'd want. The Republicans want MORE tax breaks. They already gave away the bulk of $800B they should've be trying to dole out any more money to entities and people who don't need it. Also you should consider the fact that this is 20 years worth of mess that has to be cleaned up. The money is borrowed because Bush blew it all on Iraq and other nonsense. So what would you have Obama do? It's a mess! My state is operating on zero right now due to an idiot Republican in office. Electing a new person in 1.5 years wouldn't fix all the damage that's occurring right now. We have to start somewhere.

CC said...

I agree with you about the job issue and finding a product that makes America valuable in the global economy (if we made better cars, maybe the car industry wouldn't have had their problem, maybe). I'm no expert in economy so I can't argue too much with your point. I am always concerned with the idea of basically putting more money on our US credit card which seems to be the plan here. I'm convinced here that the best resolution is to help the middle class. In most societies the middle class is the backbone of the economy

rainywalker said...

70,000 more unemployed last week. Everythings in that stimulus bill but the BBQ sauce.

MacDaddy said...

Good stuff, Dawg. I believe the rest of the TARP funds should used used to help people with foreclosure and infrastructure, which is the quickest way to create jobs and put money into the hands of real folks.

OG, The Original Glamazon said...

Well I do think there is lot of spending I don't think a lot of it will get in the final plan.

The thing is I don't fault the dem they re politicians with the majority that fundamentally beleive in spending. They of course are going to try to set their policy and see how much they can get through. The same way that I expected that the Senate will force more compromise.

I would do the sme thing I'm gonna do what I want first and make you ask for compromise.

The thing is not so much with trusting our Pres. For me I trust him because he has some of the greatest economic minds working on this from all sides.

Plus we have already exhausted the things that normally work. The problem is this is NEW. We have never been here even the Great Depression was different.

You are right manufacturing is dead those workers are going to need to move to something else , ie green technology. We have a chance to move to the forefront in energy and alternative energy. If we can do that , it will give us the same success as India even more so, because countries like China and India will want buy that technology from for a minute. It took Japan a while to kill the big three.

Anyway I heard some good ideas from the right that will make it in the bill. This is a very dire time but this is also time of opportunity to set policy for this country much like FDR.

I agree with tax cuts but we do have to spend and if I don't have any job a and my skills from manufacturing transfer to a government job I'm gonna take a job.

A tax cut doesn't help me when I'm unemployed.

-OG

clnmike said...

That India post ticks me off because we have the tech to do exactly that and better, how ever the cost of manufacturing products like this here would kill the idea of cheap.

Workers saleries alone would hike the products price up and the South with there no union rule would hog all the jobs anyway.

Torrance Stephens - All-Mi-T said...

Ray Ray
thank u maam and do that

Rich Fitzgerald
Mccaine lol nothing the fundamentals of our economy are good lol


Oyin
no question is dumb, but to try and ans, back and forth from deflation to inflation would likely be the result

MrsGrapevine
the GOP dont have it together i put them in cahoots with DEMs. Im saying do something, but justv dont make up stuff and dont know if it will work. It was his statement i was refering too. Great points

P_LOCA
nope just the holy american empire lol




Princess Katrina
he u how is the fam? and thank u

Glo
i didnt mean to make u mad maam. it would be better than looking at the grammy's

Third World Profashional
no maam thank u the pleasure is mine maam. i have been to zimbabwe

ActsofFaithBlog
i agreee about this in fact since regan, i have stated such in the past as well and put it each prez foot since regan. And he has called this at first a stimulus plan - via marketing he calls it a recovery plan now cause no stimulus is in it

CC
that was one of the back lashes of becoming a service sector economy - its hurting us now

rainywalker
and how as the liottle rascles would say


MacDaddy
agreed but doing such would make too much sense - they still politicians

OG, The Original Glamazon
well said and im with u and the GOP that 4% mortgage rate, refinancing and being guranteed by the gov is the bomb.


clnmike
I guess thats why big service corps here prefer to pay Indian workers 8$ an hour instead of folks here

nicki nicki tembo said...

business as usual

Tha BossMack TopSoil said...

I'm a little nervous right now, i heard some of tha shit in that package and I was like wtf.

MacDaddy said...

Dawg: I did hear from Independent Bernie Sanders, I believe, that Obama may have loaded some items into the stimulus package as pay back to some of its constituency, especially governors and mayors from large cities and to have some extra priorities (like 20 millions to the Endowment of the Arts and millions for climate research) with which to negotiate with the senate, where the bill will be harder to get through.

This may be true. Even so, I think the stimulus has already caved in to Republicans by putting too much into tax breaks and too little on foreclosures and infrastructure (about 10% from what I can see), which creates jobs the quickest

Anonymous said...

It is so easy to point fingers at democrats. Many republicans are trying to put unnecessary items into the stimulus package too, they are just not saying it out loud! What should the president Obama do wait and see. That is what the last president did, and see where it got us. The 700 billion that was given to the bank was not used correctly, and I know it was a lot left. All I can say is just give the man a chance, and stop complaining. Republicans gave Bush all the chances, why not President Obama. We will not be in anymore debt than we are now, and I am tired of hearing the saying "I'll children will inherit the debt", they are going to inherit it anyway if the problem is not fix. All I can say is republicans stop hating! All they want is to cut payroll taxes. Now, how can that stimulate the economy, when there are so many not getting a pay check. Finally, the infrastructure is important, because there are so many road and bridges falling while people are trying to get to work. I don't want to be one of those people stuck on a falling bridge!

Melody.Darlene said...

u never sent me your twitter info! lolol

The Socialite said...

Great point about where the jobs are being created. It needs to be in areas where people lost their jobs! And I also agree that a plan needs to be throughly thought out and not just rush into things.

DNLee said...

hey Hometown,

I wanted to solicit your input on a blog project.
I am hosting the carnival on my blog, Urban Science Adventures! (c). Many in the science blogging community are on board. With you being a man-of-science and an academic (you never really stop being one) as well as a big time blogger in the Black & political blog spheres, I was hoping you would be willing to participate.

Simply write a post profiling an African-American innovator or educator in STEM and submit it the carnival. Submission deadline is Feb 20, and the carnival will be posted on Feb 24.
This is the link to submit your blog post: http://blogcarnival.com/bc/submit_6257.html. Promote the carnival, encourage others to participate.

I hope you're able to participate and thanks for your patience. Shoot me an email if you have any questions.

Thanks, DNLee

msladydeborah said...

I do not believe that the current package will be the one that Obama signs off on. Even he has indicated that it was full of pork poop. Also that he is willing to cut it out. So I suspect that we won't be seeing him sign the current bill that is up on the hill.

Although I am seriously considering writing to my reps about funding for the honey bees. There is a true shortage of bees. As a gardner I know how this affected my plants last year. We really have got to have them in our environment.

I am also not for adding on huge $$ to the welfare programs. That is bullshit spending. We don't need to bloster the rolls. I am more for spending money for folks who don't have the skills to enter the market to acquire them.

Torrance Stephens - All-Mi-T said...

nicki nicki tembo
and u know this

Tha BossMack TopSoil
keep gat tight

MacDaddy
i want some obama stimulation too - not like that u know economic

Anonymous Anonymous
i pointed fingers at them all maam, it juist so happened to be his plan, did the same with the first bill too = opportunity here - u read it, if not do and tell me

Melody.Darlene
i got u folk

The Socialite
i think he just want his first bill passed

DNLee
will do folk

msladydeborah
i hope not i hope not

Waiting for Zufan! said...

Hey, you know, it does worry me a bit, too, especially since the rest of the world seems concerned about the bailout. (Yep, I'm reading the NYTimes lately. :))

But you know what? I trust Obama's decisions, not only because I agree with his beliefs, but because the guy is SMART. If anyone can lead the country through this, it's Obama.

That said, I agree, things are going to continue to get worse for a while. It's inevitable.

Miriam said...

Hey Torrance.

Can you imagine being in another country and having one's bank fail?!

ChocolateOrchid said...

I agree w/us "needing a product that everyone else around the globe would want to purchase". And I'm definitely feelin' you on that stimulus package. The amount of debt we're gonna owe makes me feel like we will all be servants to China some day. By the way, what is the amount of our "running" tab at now?...

Kryssy said...

Yeah.. I too I'm iffy about this 'plan.' Great blog. Thanks for stopping by mine. =)
~K

Aspasia said...

"we may as well just sign over our nation state to China, our largest creditor."

Well, in the future according to Joss Whedon, the government is a Sino-American Alliance and all the citizens speak both Chinese and English. We're well on our way to that being a reality, for better or for worse.

Torrance Stephens - All-Mi-T said...

Waiting for Zufan!
well i just dont trust no politician and no lawyer - i read the small print for myself thats all

Miriam
i sure cant did that happen to u?

ChocolateOrchid s
a tab we cant afford

Kryssy
thank u maam

Aspasia
sounds like the sino european afreements of the 1950s huh?

KELSO'S NUTS said...

@ ANONYMOUS: Who among us has the power to DENY Obama a "chance," even if we wanted to?

What you are asking for is merely social conformity.

About the closest analogy I can think of for me as a White Jew who lives in South America would be if Yehuda Simon had beaten Alan Garcia for the presidency of Peru last time. Given that Garcia was a Reagan-era death-squad captain and "dirty warrior" anti-Semite, making Simon the first Jewish president of Peru and a center-left one at that would have been thrilling. For a minute. And then it really got bad. Simon JOINED Garcia's cabinet as token "progressive" Minister Of Finance to appease all the pressure groups who fight for compensation for the "disappeared" of the 80s.

Yehuda Simon met all the qualifications for three terms, one Hebrew, one Spanish and one Yiddish that pack as big a punch as "house nigger" does: "MESHUMED," "CONVERSO DE MIERDA," "KAPO." Those are really the worst insults one Jew can say to another.

And if Simon wins next time around, all it will mean is that a non-sadist and good economic steward will be president of Peru. He'd have better social policies than Garcia does and would be an upgrade. The history making part of it, he's kind of forfeited.

Alan Garcia is obviously as a middle-aged man not the same kind of sadist he was as a young man, but it's a disgrace for a Jewish politician to act as liberal cover for that guy.

You can tell a lot of wonderful narratives about ANYTHING under the sun. I'm just thinking of a lot of great kids' movies I took my son to like ANTZ and FINDING NEMO and EVERYBODY'S HERO.

Narratives are no substitute for policy and the package is bad policy. It's too stingy with the poor, too generous with the rich, and yes completely irresponsible fiscally.

How does any of the foregoing take away Obama's "chances" at doing anything? He's The President Of The United States and I'm a NOBODY.

ms. bliss honeycomb said...

at this point, it seems that the american economy is simply a house of cards, no matter who does what.

we have no real manufacturing sector to speak of, as you mentioned. we gave most of that away in the reagan years.

financial systems have been obfuscated beyond belief. hence this mortgage mess.

the countries where banks still run like banks (e.g. lebanon) and the ones that make stuff ppl wanna buy or provide cheap services (e.g. china, india) are the ones who will likely come out of this mess with something to show for it.

imo, it's just time for the empire to fall. not necessarily on some apocalyptic shit, but even rome got its ass handed to it eventually.

i'm looking at this from several angles, and i truly think our time is about up. the world is on the verge of true, deep change, and we're a baby/teenager with a big ass gun compared to the older, stronger wisdom that's emerging. we'll either have to wise up, or get outta the way.

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