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As the guardians of the economy have slowly woken up to a reality that anyone living in less than three homes can describe from experience, there has been a recent avalanche of "assistance" coming from the government treasury American taxpayers in the form of cash infusions in a desperate, haphazard effort to resuscitate the staggering US economy. As the Fed meets again to decide if any pain should be inflicted on investors, or just dump it all on the consumer, and the Senate debates another attempt to minimize the carnage wrought by unchecked greed in the housing market to the tune of a mere $4 billion, I thought it would be a good time to see just how much CPR the economy has received lately, and whether it's doing any good.

Short answer; It isn't.
Maybe it's time to pronounce.
Cause of death (with links) is under the sheet.

Just in the last few months we have seen:

  1. A massive bailout of Bear Stearns, in direct violation of the sacrosanct market principles of viability, (how much did that cost, again?)
  1. An unprecedented proffering of $200 billion in loans to help the most advantaged money-changers get out of the mess they put themselves in.
  1. A 2008 remake of the Great Giveaway of 2001, which has removed almost $71 billion from the nation's coffers (so far)and done little to help the economy.
  1. Speaking of giveaways, remember that the three rounds of tax cuts for the wealthy were supposed to pay for themselves? Here's how that's been working out.
  1. Of course, there are two rather expensive, ongoing, apparently endless wars to pay for, which is now at a burn rate of twelve billion dollars a month, triple what it cost in 2004. And is being "paid for" simply by refusing to actually pay for it. So the cost of the most expensive undertaking in human history is not included in:
  1. the largest debt in human history, of which the astronomical federal budget deficit is only the current balance due. (There's a substantial previous balance, too). It sure is racking up interest, currently $240 billion per year, and growing like cancer.

Since our national nightmare began in 2001, the ideologues of free market capitalism, the party of fiscal responsibility, the idolators of the individual have pursued nothing more than massive welfare for the least deserving in society, and punished misbehavior with more and more free money. It has collapsed the US dollar, driven the ever selfishly opportunistic investor class into commodities like oil, and led to the greatest income distribution inequalities since just before the last Great Depression.

And still they hunch over the motionless patient, knowing, just knowing, that the next, bigger jolt will bring the cooling corpse back to life. And still no one among the Serious Class is even asking if there is a flaw somewhere in the assiduously pursued "philosophy" of reverse-Robin Hood and wealth-capture economic policy.  

The American people, meanwhile, are starting to make the arrangements for the funeral.

Maybe it's the daily reminder that we can't afford to get to work much longer with gas prices on an exponential curve, and they are figuring out that killing ANWR and their favorite beach won't do much to help five years from now, let alone anytime soon.
Maybe they feel that food isn't just getting way too expensive, or way too poisonous, but might actually become scarce.  
Maybe it's that the American Dream is turning out to be more like a drug-induced hallucination.
Even old reliable, the government, is cutting jobs.

Congratulations, george bush.
Congratulations, republicans.
Congratulations, disinformation media.
You have done what almost no one thought possible just a few years ago.
You have killed the golden goose.

Originally posted to kamarvt on Wed Jun 25, 2008 at 07:56 AM PDT.

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Comment Preferences

  •  will blog for food (4+ / 0-)

    Pretty distressing that in spite of the accumulated evidence from this debacle and from the Reagan Trickle-Down game, that the only response we can even hope for from our elected officials is to keep digging.
    Still no talk of shared sacrifice.
    Still no talk of serious market reforms.
    Still no talk of resposible budget mamagement.
    Still no talk of accepting reality in any way at all.

    American Exceptionalism is a powerful hallucinogen, I guess.

    On Liberation Day, 1/20/09, Americans will greet us with flowers and candy

    by kamarvt on Wed Jun 25, 2008 at 08:00:21 AM PDT

  •  the economy is lacking a breakthrough (1+ / 0-)
    Recommended by:

    the economy isnt doing anything unusual really. its hovering around.

    every growth spurt has happened because of a catalyst. dot coms, housing, etc etc

    the US is needing that next big market.

    We need some innovation.

    Its going to come in energy or healthcare, but we need it.

    McCains battery idea was stupid as hell, but research on alternative fuels isnt. If we can make electric cars that function, we can own the market.

    •  I steered away from discussing solutions (0+ / 0-)

      as I have very little (ok, no) expertise. this article came from a quick perusal of economic news on mainstream media. it struck me that in spite of injecting all this $ into the system (mostly at the top, surprise, surprise), not only are the signs still bad, but people feel less hope than anytime since the early '70s.
      Massive innovations in NRG, infrastructure revolutions, etc are desperately needed, but there is no political will to acknowledge that the "prosperity" of recent years is a mirage born of wealth capture riding on bubbled-up fictional wealth. this is beyond unsustainable. It's an economic cancer.

      First of the twelve steps is admitting there's a problem, and we're not doing that.

      On Liberation Day, 1/20/09, Americans will greet us with flowers and candy

      by kamarvt on Wed Jun 25, 2008 at 08:22:28 AM PDT

      [ Parent ]

      •  Perusal (2+ / 0-)
        Recommended by:
        kamarvt, xaxado

        this article came from a quick perusal of economic news on mainstream media

        Perusal is an interesting word, in that many people use it in a manner different than its traditional meaning.

        tr.v. pe·rused, pe·rus·ing, pe·rus·es
        To read or examine, typically with great care.

        Usage Note: Peruse has long meant "to read thoroughly" and is often used loosely when one could use the word read instead. Sometimes people use it to mean "to glance over, skim," as in I only had a moment to peruse the manual quickly, but this usage is widely considered an error. Sixty-six percent of the Usage Panel finds it unacceptable.

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