The Next Economic Stimulus Package
Jan 29, 2009
The congress has passed the next so-called "economic stimulus package" of $819 billion. We will soon see what the senate will do with it.
The package is said to be urgent, because we supposedly need more money injected into the economy as quickly as possible. However, less than $170 billion of this is slated to be spent in the year 2009. Most of it is earmarked for 2010. I smell another scam.
If more than a trillion dollars in emergency measures last year did not do the job, how might $170 billion succeed where the previous plans failed? It appears that most of the "stimulus" package is just a way to get funding for the social programs that the Democratic Party has been pushing for since President Bush blocked them in 2001. That is the main reason why not a single Republican voted for the bill.
President Obama will have the advantage of initial optimism for a few months. And the positive effects of the present "stimulus package" will be awaited anxiously by the unsuspecting public. Congress will be seen as "doing something" about the problem. But as the months pass and the unemployment figures move higher, bankruptcies continue, and corporations continue to lose money, a great disillusionment is bound to occur.
I do not blame President Obama for this. The problem began long ago, and he is simply inheriting a long-term problem. He has no choice but to preach the gospel of hope. But at this point he appears to have no inkling of the real underlying problem, and most of his advisors have much experience perpetuating the problem. The good old boys from J.P Morgan, Goldman Sachs, and Citibank, who made money perpetuating the problem, are still being called upon to resolve it.
Once again, the foxes are called upon to keep the chickens from all harm.
Meanwhile, bankers and government officials have apparently agreed never to mention the problem of "derivatives." If they did, the public would be better able to inspect the toxic banks that their government intends to buy. Buyer beware, the saying goes. Bankers are planning to split the big banks in two, keeping all the good stuff and putting all the bad stuff--including the trillions of dollars worth of bad derivates--into separate banks to sell to the government with public money.
But don't worry. This will merely bankrupt the US government and force it to declare a Jubilee after all. Not even the US government can take on over $500 Trillion worth of worthless derivatives without going bankrupt.
I give out no hope for this Babylonian system. It is going down. But yet there is light at the end of the tunnel, and it is the light of the Kingdom. God Himself is using His "unseen hand" to dry up the Euphrates (liquidity and life's blood of Babylon) in order to replace it with an honest money system that is based upon His Word.
Here is a good article to read:
Warren Buffet, supposedly the second richest man, says that these derivatives are a financial "time bomb."