Are We Crazy Like a Fox . . .

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. . . or are we just plain dumb?Here lately the news media has everyone in a snit about the economy. Another example of newsies making the news themselves by getting loose bowels over nothing from all I can see. A recession when we have full employment? Yeah, the stock market does some ups and downs and they report every little correction as though it were the end of the world. Let us remember that the current “down” for the market is still higher than ever before in the history of the thing. Also remember that without a “story” the newsies have nothing to do. If there is nothing to panic about they will make a mountain out of a handful of dirt so that they can report on the new mountain.

Yeah, the banks are hurting a bit because they loaned money to people who were unqualified and/or were buying way more house than they could afford. Let them suffer a bit. There is nothing in the Constitution that says that banks are guaranteed a profit when they make dumb moves.

So, now the government is going to “give” us a tax rebate. First off, how is it giving when all they are doing is rebating the money that we have paid in? I will grant that there is somewhat of a “gift” aspect since they want to use some of my money to give to those who don’t pay taxes, but for most of us it is only a bit of that which was taken from us to start with.

Next, it seems that we are going to be borrowing some money from China. Of course, the Washington crowd says that these are not related. Yeah, and water runs uphill. I don’t really see this as any different than the spendthrifts that charge their plastic to get some ready cash when they are already in hock up to their eyebrows. When you borrow on your plastic the repayment is many times the initial amount. Borrowing your way out of debt does not work.

There are several ways to look at this. Either the President and the Congress have lost their minds and are just spending us into more debt, or there is some clever plan behind all this.

Dumb possibilities – we are just getting more debt and China is just another benign creditor and it will only cost us many times the amount borrowed to repay it. Next dumb possibility – China has always wanted us out of the Pacific, they regard that as their own. They want all Pacific territory up to the California coast and will use this as a weapon to weaken us and call the loan when we are most vulnerable. This also means that they would be totally thrilled to see us destroyed by Islam, which would give them free rein in the Pacific.

Smart possibility – the Chinese have changed their spots and just want us as a valued and healthy trading partner and know that we will spend most of the rebate on stuff that is made in China. This will put them into a position of vested interest in seeing that we remain free, strong, and solvent to be a really strong consumer of their goods. This would also mean that they would have a strong reason to help protect us and the rest of the consuming West from destruction by Islam.

Have the Chinese changed their goals? I don’t really know, but their track record does not lead me to think so.

If the President and the Congress really want to give us a “tax gift” the best thing that they could possibly give us would be the Fair Tax – with no revisions or amendments. Oh yeah, cutting pork-barrel spending would be really nice. If these idiots cut out their fat we could be debt-free in record time.

Fat chance. Odds of the Chinese changing their spots are somewhat better.

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One Response to “Are We Crazy Like a Fox . . .”

  1. Suzanne Says:

    I don’t have the knowledge or understanding of economics, whether local or global, to agree or disagree. However, a friend sent this URL to us this morning in the email, and we found this 25 minute video quite enlightening. It is a discussion by Paul VanEeden “on the key players in the subprime mess.” http://www.howestreet.com/audiovideo/index.php?pl=/fbn/index.php/mediaplayer/262
    or http://tinyurl.com/2ttdph . I thought perhaps you might like to see this video, too.

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