The “Stimulus Package” was/is a Fiasco. Why? Because none of the money ever reached the marketplace, it all still sits in banks gathering mites, dust and interest which we the taxpayers who get almost literally NO interest on our savings accounts are paying interest to the banks on the money the last two presidents gave them. Why, because the advisers of both presidents, like those presidents themselves, are Finance-IQ deficient, which is easier than saying they did not know what the Hell they were doing and still do not, because if they did know what they were doing they ought to both have been impeached.
As far as the federal deficit is concerned, Congressman Ron Paul has great idea. He suggests that the FED write off the federal securities purchased with funds created in its quantitative easing programs (the Stimulus idiocy). No creditors would be short changed, because the money was made-up out of whole cloth on a computer the day it was approved. The US would simply be canceling a debt to itself and saving the interest. Remember we are no longer on The Gold Standard, in which a ton or more of gold would have had to be shipped to the banks.
As for the so-called “quantitative easing,” which intent was to stimulate the economy, the money should have gone directly to the government and then into the purchase of goods and services, stimulating “demand,” or better still, directly to American citizens who would have spent it in a hurry.
By sending it to the nether, never, never-lands of the balance sheets harbored within banks, it would as it has, have slid into the comfort zone of banks and be gambled away on speculative ventures as it was initially, rather than local lending. Or it might have sat forever gathering interest for which we, the citizens, are paying.
Even the final resting place of the $1.6 trillion gone away is a twisted event because the money did not even come to rest in American banks but in foreign banks instead.
Money that goes directly to the government and the people, on the other hand, will be spent on goods and services in the real economy, creating the invisible jobs that Obama keeps kidding himself and hoping to kid us that he Fantasizes he is creating.
In our exuberance to elect a non-Bush type president we almost succeeded. Obama is somewhat like Bush but in a closer look he is much, much, worse.
I would go congressman Ron Paul several steps further:
1)- We need a second round of Stimulus but one which requires at least a financial IQ of higher than the two figured financial IQ of the present Heads of the FED and the retrograded minds of Obama’s advisors, who couldn’t properly advise a goat on whether to pee in the pasture or in the ditch on the side of the road which drains into the drinking water supply.
2)- This time what should be done, which is probably as high above the reaches of the Harvard Presidency, as it was above the minds of the Yale presidency. Maybe those two institutions should be dropped from the A list of great schools and placed on the A list of The Once Great Schools which fell from simply stupidity, to stupid fascism, which didn’t work the first time around in Germany and won’t this time either. At present it is merely angering every nation in the world.
What needs be done is simple. Give the money to those who will quickly spend it, the middle and lower classes. I would say give away, not loan, for the last lone has gone awry and is lost, but can be recalled. Give away between $25,000 - $50,000 to every family with a net worth after debt is subtracted of $1 million. They will quickly spend it rejuvenating the economy.
There is one caveat, however, whatever they do with the money it cannot be either of these two things: It cannot be spent on anything that increases their debt and it cannot be nestled in their bank accounts if they have any, for long, though it can be spent on debt reduction. The cash would be a debit card from a Federal account, which would monitor how it is spent, thus the criteria would be overseen.
3)-To generate demand, and rebuild the tax base, the 1935 law forbidding the Fed to buy Treasuries directly from the Treasury needs to be repealed.
4)- Raise the interest rates so that banks can pay at least 5% interest on savings. Force states and cities to lower property taxes and also to hold referenda for every purchase they attempt to make, depend upon the voters approval.
5)- Create State Banks in all remaining 49 states, such as the Bank of North Dakota.
About BND http://www.banknd.nd.gov/about_BND/
In contrast to most commercial banks, Bank of North Dakota (BND) is not a member of the Federal Deposit Insurance Corporation (FDIC). North Dakota Century Code 6-09-10 provides that all BND deposits are guaranteed by the full faith and credit of the State of North Dakota.
The deposit base of BND is unique. Its primary deposit base is the State of North Dakota. All state funds and funds of state institutions are deposited with Bank of North Dakota, as required by law. Other deposits are accepted from any source, private citizens to the U.S. government.
Policy and Governance,
The state Industrial Commission oversees Bank of North Dakota, as mandated by the 1919 state legislature. Members of the Industrial Commission are the Governor, who acts as chairman, the Attorney General and the Commissioner of Agriculture of the State of North Dakota.
The Bank also has a seven-member Advisory Board appointed by the Governor. The members are knowledgeable in banking and finance. The Advisory Board reviews the Bank's operations and makes recommendations to the Industrial Commission relating to the Bank's management, services, policies and procedures.
In our further exuberance to expiate any remaining guilt over racism, and to stick it up the noses of racists, Americans voted for a man who is G. W. Bush’s evil twin. That would not have been as much a bad thing, if he picked upon the wealthy, except in this case it was a bad thing because we did not elect the black version of FDR, we elected a partially black person who is a partially evil twin of G W Bush and partially worse than G W Bush, because we elected a man whose instinct for murder, torture and assassination, and for destruction of the safety nets of the elderly and the poor, is somewhat like that of his fascists enemies, who, he more and more adores with emulation and even goes beyond that. Beyond that Obama has NO experience at anything and is lost and that is our fault, yours and mine for voting for him. Shame on us, but we had little choice, either him or eventually a very pretty but ditzy, wolf-shooting nutcase.
What is driving this killing machine in a man who never served his country in the military? Why did he not serve in the military? For the same reasons people who do not eat them, hunt unarmed animals: Because the animals do not shoot back. One right wing souse claimed Obama hated whites. I do not believe that. I believe that like Cheney he simply hates everyone and wants to kill off as many of them as possible - some quickly with drones and bullets and bombs, and other like the elderly and the poor and middle classes, slowly by removing their livelihoods.
I plan to vote Third Party in fall of 2012 God willing, how about you?