The government printing presses continue to pump out currency with the backing of the Federal Reserve and, as a result, a bottomless pit is being created for all of us.
It is of the utmost folly to think that these spending programs by the politicians in Washington are of lasting benefit (think future tax increases) to the populace as a whole. Sure, the CARS program provided a temporary boost for a few — mainly dealers who sell vehicles bearing Japanese labels — but with no substantial gain for American label manufacturers.
Reports indicate that sales prices were bumped up during this program and a large number of purchasers are having second thoughts about the added credit indebtedness they have taken on (think future repossessions).
The current policies, and I am not about to say that earlier ones were resounding successes, will result in lower standards of living, higher taxes, probable hyperinflation and high interest rates; but the rates that banks pay you on your savings accounts or other accounts will not keep up.
Even with the massive increase in government spending programs, we have seen a continuing increase in unemployment, business failures, home foreclosures (and some are predicting an escalation in foreclosures within the next year or so), etc. So far the principle sustained growth area over the past couple of generations seems to be with the industrial-military alliance.
BY JIM BAYNE | EDITORIAL COLUMNIST
Published: August 30, 2009
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My hearing isn’t what it used to be, but the other night I heard (I think) an advertisement for a new drug where they said “for some users the benefits may outweigh the side effects.” |
