I am concerned that none of these folks inside the belt way can be honest with me or the public regarding the economy. The truth is that nobody knows what will work. And to go on and tell folks that something will work when they do not know is a bold face lie – regardless of who delivers the message. And yes I group all of them as the same from Obama to Bush, to Clinton to Regan with respect to this problem as well as all of the senators and congressmen who let this shit occur on their watch while they were giving themselves annual salary increases. Under Bush we accumulated more debt than that of the entire prior 42 Presidents of this country combined.
What really gets me is this talk of a “global new deal” and makes me wish I could read the transcripts of what was actually said between President Obama and British Prime Minister Gordon Brown because that April meeting will be here before you know it. I just wonder if we are seeing the beginning of the end of US sovernity. Since Regan, 78% of our economy is based on consumption, that is to say we buy more from others and produce nothing, and that for decades we have been spending more than we earn and borrowing more over the same period, it would be hard for me to see another nation or organization telling us what to do.
The truth is folks can talk about the stimulus as needed and that it is the solution, but it is not. We need way more than $900 billion to deal with this problem and I have estimated $2 trillion will be needed for the banks to be supported alone. Why, because we are a $14 trillion dollar economy in a global market place with more than $40 trillion dollars in lost equity worldwide. This is just the start of a real long period of stagnation and if over here we see bigger government and more government spending as the answer that means even a bigger government, like one international government may be what will be on the table when the G-20 meets in April. I mean when they speak of “coordinated efforts” this is what I hear and that means I won’t even rule out the creation of a single global currency.