Sunday, January 20, 2008


Bush's ponzi scheme

It's clear that US President George W Bush no longer cares about the US, if he ever did. His decision to put cash into the economy must have his ecnomists cringing.
How can anyone in their right mind believe that the goverment, who is in debt so badly that it would need each household in the entire country to pay $400,000 right now, would fling money back into the black hole?
For some reason he believes this will stimulate the economy, though just how is unclear. People are meant to spend that money on goods which will then provide jobs. Well, that's the song he's singing. And yes it will provide jobs - in China, India or Qatar. It will do nothing for the average Americans. It might put a few extra bucks into the hands of importers. But once the US$500 is spent what will happen?
How much money can the crippled government toss at the people? How much longer can it fool the people before they wake up to the fact that they have spent their children's future, and in fact their own future.
Bush's last budget was so false it should have been called a "fudgit".
According to the General Accounting Office of the United States, the US government needs US$53 TRILLION to fulfill its obligations. Every business in the captialist worlds has to include future liabilities on its balance. But the US government does not do that.
And the gulliable, stupid US people do not realise it.
On the other side of the world the opposite is happening in China. Chinese don't spend their money, they save it or invest it, and that is worrying Beijing as their economy overheats. Call it the remnants of Communism, but unless the Chinese cut loose and put down the cash they'll be facing higher food prices and rents.
It is also astonishing that sitting with such a large deficit, the goverment does not improve its social services. Although a lot of money is being spent on infrastructure it is lacking in quality and the high accident rate in the coal mines also needs to be addressed.
Meanwhile the fastest growing economy in the world today seems to be Qatar. It seems the balance of power has shifted out of the hands of the west.

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You've got a zero too many and then some.

US National Government debt is about $30,000 per person.
Thanks for the editing.
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