While we’re all consumed with the dynamics of the global economy this week the US micro economy is going down the toilet. When we all wake up from this $700 billion dollar discussion next week we’re going to realize that we’ve lost more jobs last quarter than any other period since 1999. The GDP is set to deflate to a record low and wages aren’t just stagnant anymore, they’re going down with the value of the dollar.
So is $700 billion gonna help? The short answer depends on who you think it will help. Will it help international foreign investors? Yes. Will it help Wall Street tycoons? Yes. Will it help banks? Absolutely. Will it help the majority of Americans who don’t care about accumulating anymore debt and just want their paycheck to cover their current bills? Not just no, hell no.
The coming agreement between Congress and Sec. Paulson has pretty much been stripped of anything that will help the middle class. I mean hell thier trying desperately to come up with some way to illustrate how this package does anything at all for working Americans. It’s hard for them to do because their argument is that we need lending to keep the economy going. In their words: banks need to be making money on interest or they will fail.
Well aside from my mortgage I’m glad I can say that I’m a banks worst nightmare. I hate loans and the use of credit and I avoid it like the plague. If all American’s and businesses adopted this policy America would go bankrupt according the administration. Is this true? Are we truely an interest revenue driven economy that cannot stand on it’s own without everyone carrying a burden of debt? If so, that’s a damned shame and we should all be ashamed that we let it come to this.
The Chinese don’t use credit cards. They don’t even use debit cards. To this end they may own America one day if they own our debts. Let’s play it out. We sell our bad debts to the US government (our mortgages). The US government runs a huge trade deficit to China using mortgage backed securities as collateral. China calls the note due.
There you have it, a scenario where a foreign government can own our property because we could not pay our debts as a country. It may be far fetched but 10 years ago so was the notion that the US government could foreclose on a home loan. Government foreclosures are coming to a neighborhood near you soon. Let’s just hope foreign foreclosures don’t follow in the next decade. China could be putting Americans out on the street so the Hsui Huie family can move in. Nice.
Wow. That just sums it all up as far as our economic growth as a country goes. Banks, investors and corporations are all in it for the money and themselves. The rich do not want to lose money which I find funny b/c they have the money to lose. As far as the middle class, we don’t have any money to lose and we are losing it left and right with wages going down and prices going up. The number one thing there is a short supply of is money and of course we have a huge demand. I don’t think $700 billion is going to make a difference to the middle class. I definitely don’t want to sell our debt to China and be ruled by foreign government. That would be crazy! Hopefully, something good will come out of this but I doubt it. We live in a greedy money powered world…