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Here is a wealth of information. Check the site in blue below for Bail out info. Lots of bailout info!
Santa Claus
December 23, 2009 by John Myers
[Edit to topic point]
“If you take the government to be Santa Claus,” says economist Robert Higgs, “you naturally want every day to be Christmas; and the bigger the Santa, the bigger his sack of goodies.”
That sack is certainly getting bountiful. Today the Federal Government is not only the nation’s largest creditor, debtor, lender, employer, consumer and contractor; it is also Santa Claus to tens of millions of Americans.
According to the Brookings Institution and the Urban Institute, roughly 47 percent of Americans either pay no tax or a negative tax (Washington sends money to some people every year through such programs as the Earned Income Tax Credit).
The Federal Government has a long list and lately it hasn’t bothered checking it twice. Since October of 2008 the Federal Government has committed $700 billion and already spent $420 billion through the Emergency Economic Stabilization Act. The Feds have also set aside another $400 billion in separate bailouts to Fannie Mae and Freddie Mac.
For companies like General Motors (GM) and AIG, which have been gifted $50.4 billion and $69.8 billion respectively, there really is a Santa Claus.
If you want to check on all the goodies that Washington has given, there is a detailed list you can see here.
http://bailout.propublica.org/main/list/index
Best of all, Santa wants to see all of his gifts given. On Dec. 8, President Obama unveiled plans to use some of the $200 billion in lower-than-expected spending on troubled bank assets as a fiscal stimulus. Obama claimed his proposal is aimed at alleviating the “continued human tragedy” of unemployment.
Obama said he wants to create “the greatest number of jobs while generating the greatest value for our economy.” And just like Santa, Obama is leaving the price tag off.
What we do know is that the President is calling for an extension of unemployment and health insurance benefits for the more than 15 million out-of-work Americans. According to Obama, boosting jobs—through more government spending—is the best way to tackle the deficit. That kind of deductive reasoning is every bit as magical as Santa Claus.
The list seems endless. Forty billion dollars needed in Afghanistan? Done! One trillion dollars needed for Obamacare? The Democrats are working on that. Meanwhile there is even $1.1 billion for a new agency to protect consumers. And the Greens can count on a stocking-stuffer delivered fresh from Copenhagen.
Bad Santa
There is just one problem. Santa is broke. The budget deficit is a runaway sleigh. For the year ending in September it hit a stunning $1.4 trillion. If that weren’t bad enough, the Congressional Budget Office forecasts a cumulative $9 trillion deficit over the coming decade. When I started in this business in the early 1980s some were issuing dire warnings over Reagan pushing federal debt above the $1 trillion mark. This Christmas it is $12 trillion and climbing.
“No single year’s deficit is any particular danger,” says the Dec. 8 Motley Fool, “but their accumulation quickly becomes lethal. Piling up endless sums of debt works until it doesn’t, at which time a vengeful flock of chickens comes home to roost. Those needing proof can ask Dubai, or simply refer to the recent performance of the U.S. dollar.”
In fact there may be one heck of a Christmas hangover. Moody’s is looking at the debt of both the U.S. and U.K. and might downgrade it from “Triple-A” status.
According to The Wall Street Journal, “Moody’s released the report as part of an effort, spurred by investor demand, to examine the creditworthiness of the world’s most highly rated countries.”
That’s very bad news for Treasury investors. And in the end it may mean the end of Santa Claus. Foreigners hold $3.5 trillion in Treasury debt. If they start unloading even a fraction of this debt the U.S. dollar will crash and the price of gold will soar.
So let me leave you with this Christmas wish; that you buy you and your loved ones some gold. Unlike Santa Claus, it will always be there for you.
Yours for real wealth, good health and, Season’s Greetings,
John Myers
Myers’ Energy and Gold Report
Santa Claus
December 23, 2009 by John Myers
[Edit to topic point]
“If you take the government to be Santa Claus,” says economist Robert Higgs, “you naturally want every day to be Christmas; and the bigger the Santa, the bigger his sack of goodies.”
That sack is certainly getting bountiful. Today the Federal Government is not only the nation’s largest creditor, debtor, lender, employer, consumer and contractor; it is also Santa Claus to tens of millions of Americans.
According to the Brookings Institution and the Urban Institute, roughly 47 percent of Americans either pay no tax or a negative tax (Washington sends money to some people every year through such programs as the Earned Income Tax Credit).
The Federal Government has a long list and lately it hasn’t bothered checking it twice. Since October of 2008 the Federal Government has committed $700 billion and already spent $420 billion through the Emergency Economic Stabilization Act. The Feds have also set aside another $400 billion in separate bailouts to Fannie Mae and Freddie Mac.
For companies like General Motors (GM) and AIG, which have been gifted $50.4 billion and $69.8 billion respectively, there really is a Santa Claus.
If you want to check on all the goodies that Washington has given, there is a detailed list you can see here.
http://bailout.propublica.org/main/list/index
Best of all, Santa wants to see all of his gifts given. On Dec. 8, President Obama unveiled plans to use some of the $200 billion in lower-than-expected spending on troubled bank assets as a fiscal stimulus. Obama claimed his proposal is aimed at alleviating the “continued human tragedy” of unemployment.
Obama said he wants to create “the greatest number of jobs while generating the greatest value for our economy.” And just like Santa, Obama is leaving the price tag off.
What we do know is that the President is calling for an extension of unemployment and health insurance benefits for the more than 15 million out-of-work Americans. According to Obama, boosting jobs—through more government spending—is the best way to tackle the deficit. That kind of deductive reasoning is every bit as magical as Santa Claus.
The list seems endless. Forty billion dollars needed in Afghanistan? Done! One trillion dollars needed for Obamacare? The Democrats are working on that. Meanwhile there is even $1.1 billion for a new agency to protect consumers. And the Greens can count on a stocking-stuffer delivered fresh from Copenhagen.
Bad Santa
There is just one problem. Santa is broke. The budget deficit is a runaway sleigh. For the year ending in September it hit a stunning $1.4 trillion. If that weren’t bad enough, the Congressional Budget Office forecasts a cumulative $9 trillion deficit over the coming decade. When I started in this business in the early 1980s some were issuing dire warnings over Reagan pushing federal debt above the $1 trillion mark. This Christmas it is $12 trillion and climbing.
“No single year’s deficit is any particular danger,” says the Dec. 8 Motley Fool, “but their accumulation quickly becomes lethal. Piling up endless sums of debt works until it doesn’t, at which time a vengeful flock of chickens comes home to roost. Those needing proof can ask Dubai, or simply refer to the recent performance of the U.S. dollar.”
In fact there may be one heck of a Christmas hangover. Moody’s is looking at the debt of both the U.S. and U.K. and might downgrade it from “Triple-A” status.
According to The Wall Street Journal, “Moody’s released the report as part of an effort, spurred by investor demand, to examine the creditworthiness of the world’s most highly rated countries.”
That’s very bad news for Treasury investors. And in the end it may mean the end of Santa Claus. Foreigners hold $3.5 trillion in Treasury debt. If they start unloading even a fraction of this debt the U.S. dollar will crash and the price of gold will soar.
So let me leave you with this Christmas wish; that you buy you and your loved ones some gold. Unlike Santa Claus, it will always be there for you.
Yours for real wealth, good health and, Season’s Greetings,
John Myers
Myers’ Energy and Gold Report
