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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (297592)	3/22/2009 8:41:24 AM
From: unclewest	Respond to of 793955

I don't watch Lou Dobb, so I have no comment. I would like to say a word about inflating our way out. Wildly excessive spending got us into this mess. The Obama plan calls for more wildly excessive spending to try to buy our way out of this mess. A ponzi scheme is one in which the proceeds received are not used to create sustainable income. Instead they are used to pay exorbitant returns directly to early investors. The scheme collapses when it can't recruit more investors. The Obama $ Trillions are not being used to create anything that is sustainable income. Instead the money is going to the early birds. Like others, this ponzi will come back to earth. Dozens of US Government entitlement programs are ponzi schemes too. In some the early investors like you and me are collecting far more than we put in. The money we put in never got invested instead it was (for the most part) spent. The only source of additional $ for the scheme is new investors. In other entitlement programs, there are no investors at all. They are just giveaways. These are rapidly increasing. Your solution was to spend your home equity. Well that ponzi has already collapsed. There is a sudden acute shortage of investors for the mortgage backed security that you used to get the cash. The investor shortage is caused by rapidly evaporating equity. That makes the mortgage paper worthless. The pain has begun for some. In NC, unemployment has increased 100% in one year. That is a 2 edged sword. It decreases tax cash inflow to feed the programs and increases the entitlement program outflow. We cannot inflate our way out of that. Entitlements are for the most part inflation protected.