Bush’s “Stimulus” Cash Giveaway; “Gentlemen, Start The Helicopters” By Mike Whitney

Dandelion Salad

By Mike Whitney
18/01/08 “ICH

The White House is now in full-panic mode. In fact, the falling stock market has the administration so worried that Bush will deliver a speech later today that will lay out the details of a “stimulus package” designed to rev-up flagging consumer spending. The desperation is palpable. Fed chairman Bernanke’s appearance on Capital Hill on Thursday turned out to be a total bust. Bernanke was supposed to calm jittery investors with promises of rates cuts and easy credit. Instead, his gloomy predictions put the market into a tailspin sending the Dow Jone’s down 306 points by day’s end. Now it’s up to Bush and Co. to pick up the pieces and try to restore confidence in Wall Street.

Since we first reported on the proposed “stimulus package” (Bush’s Voodoo Stimulus Package” informationclearinghouse.info) the size of the rebates have increased dramatically. The Democratic-led Congress was only calling for $250 per taxpayer or $500 per married couple. Under the White House plan, taxpayers could receive rebates of up to $800 per individual or $1,600 per couple. The rebates will accompanied by additional cuts to the Fed Funds rate (estimated 50 basis points) which will provide more liquidity to the banking system and easier credit for consumers.

The administration’s desperate actions should remove all doubt that the main problem facing the economy is inflation. It is not. The moves are intended to forestall a deflationary spiral that is the logical corollary of 7 years of intensive neoliberal policies. Ironically, now that Bush has achieved his goal of crushing the middle class and destroying the foundation of America’s consumer-based economy; he has decided to change directions and shower those same over-extended, subprime people with a $150 billion gift from the government. It makes no sense at all.

The negotiations on the stimulus package have produced the Democrats first victory over Bush. The president has agreed “not to push for a permanent extension of his 2001 and 2003 tax cuts.” Whoopee. Unfortunately, the Democrats don’t seem to grasp how dire the economic predicament really is or they would have asked for much more. For example, they could have made the rebates contingent on troop withdrawals from Iraq or the closing Guantanamo Bay. But that would mean that the Dems actually knew something about the state of faltering economy, which they don’t. They’d rather spend their time groveling for campaign contributions or applying tooth-whitener than following the collapse in the housing and stock markets.

Earlier today, Treasury Secretary Henry Paulson underlined the urgency of the situation on CBS’s “The Early Show” saying:

“What President Bush believes is that we’ve got to do something that is robust. It’s going to be temporary and get money into the economy quickly. It’s going to be focused on consumers, individuals, families — putting money in their pocket. And it’s going to be focused on giving businesses the incentive to hire people, to create jobs.”

Can you sense the panic?

It’s funny in a way. The Bush administration has been warned repeatedly about the disastrous effects of their supply side theories. Of course, they brushed off their critics and carried on with the plundering until they hit a roadblock. Now they’re running around in circles trying to find some way to stop the bleeding. Good luck.

Remember the $2 trillion wars (Iraq and Afghanistan) that could be paid for with “unfunded” tax cuts to the rich?

Remember the cuts to capital gains and corporate taxes that were supposed to “trickle down” to working class Americans creating more jobs and making us all more prosperous?

Remember the low interest rates that were supposed to create Bush’s “ownership society” that, in fact, generated the greatest speculative frenzy in real estate in American history?

Remember Dick Cheney’s brusque assurance that, “deficits don’t matter”?

Remember the myriad corporate giveaways, the lavish “no bid” contracts, and deregulated subprime shenanigans that were supposed to “grow the economy” and strengthen our markets?

The system is failing because it was designed to fail. The impending economic crisis is no accident, but the predictable outcome of deeply flawed policies that are thrusting the country towards a 1930s-type catastrophe.

Still, even disaster has its brighter side; like watching the most-reviled, least-credible President in American history try to stop a crashing market with his miserable offers of “cash rebates”.

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9 thoughts on “Bush’s “Stimulus” Cash Giveaway; “Gentlemen, Start The Helicopters” By Mike Whitney

  1. Pingback: Will Economic Stimulus Measures Stave Off Recession? by Richard C. Cook « Dandelion Salad

  2. Pingback: Why Tax Rebates Won’t Work by Josh Sidman « Dandelion Salad

  3. “Open your eyes, and listen to another Pirate Satellite Radio Transmission. Our patriotic agents have hacked into command codes controlling a Fox Tel Sat. Bill O’Reilly can have a fat sit and wait. We went into space to bring the truth to you, because truth is becoming the most dangerous thing on the planet. The giant, global banking and media industries can’t afford YOU to believe the truth. We had to steal the freedom to bring these transmissions to you.

    “You must know that the Council on Foreign Relations and the Trilateral Commission have been rigging elections and running their handpicked puppet heads into the highest offices of our land and other lands. You must know that there IS a Shadow Government. You must know that robber barons have been bankrupting citizens of this country to finance their world takeover.

    “You must know that the Federal Reserve is a Private Bank that’s been printing money backed only by consumer debt, and nothing else. You must know that the treasury has been stolen, and the only way to pay down the interest alone, is raise taxes. They simply lie, and get elected anyway. The Media that spoon feeds your view of the world keeps telling you everything’s under control. They want you to stay asleep and apathetic.

    “The Economy is now entirely based on projected borrowing requirements of future consumers who will need to make a living. The puppet heads will begin to speak of the patriotic duty to keep spending borrowed money. You must know that every dollar you spend to live will be inflated as you spend it, because it’s backed by interest on other loans.

    “Some of us will quickly run out of money to live, and making a living will not is what it used to be. Don’t think that any of that upwardly mobile flow of wealth will be allowed to trickle back down. That’s the Agenda behind ALL so called ‘government leaders’. Their system will find a way to keep the flow of real wealth funneling upwards. No one will have to raise taxes. It can just get more expensive to live, and the money still goes just where it needs: to the cream of modern society. Living on credit from banks is like paying to live twice, because you know you’ll still need food tomorrow.

    “Stock up on dry goods, ammunition, and gold. Plant a Victory garden. Eat local organic foods. Stay away from borrowing like poison, and commute on a bike. The Spartans lived so simply, (until they were rudely interrupted). Stoic ascetics may find no change to their personal liberties, as long as we keep our heads down and stay quiet. WE ARE ENTERING THE AGE OF THE CORPORATE POLICE STATE. Saying things like this will become a crime.

    “Eventually, our patriotic agents will lose the satellite, and talk like this will be brutally silenced, I will be found and stopped, LISTEN UP NOW, AND SPREAD THE WORD QUIETLY. The truth will become the most dangerous thing on the planet, and you will have to watch what you say. I’ll try to dodge the bastards as long as I can.

    “Go ahead and keep believing it can’t happen in America. It’s been happening for some time. It must be working, because we keep electing insider traders and war profiteers into our highest offices. Those types of charming sociopaths are the only choices we’re given. They smirk at you as they wipe their ass with your Constitution. For every Treason they commit against the People, they simply have their office of attorneys make the crimes legal.

    “Welcome to the New World Order, children. Speaking for my species and my generation, I’m sorry we let these things happen in a free country. Now it’s not free, anymore. Maybe the country really hasn’t been ‘free’ since we went off the gold standard. It’s expensive now. NEVER GET IN A GOVERNMENT BOX CAR OR GO TO A FEMA “RELIEF CAMP”, whatever you are told. Good luck. If you can’t beat them, join them, then beat them. Get ‘connected’, then monkey wrench the works from inside. That’s what they did to us!” — transmission ends.

  4. That the bush regime has managed to get by with voodoo economics for so long is a miracle. I believe that the coming crash will actually be good for the country in the long run, especially if it causes the majority of the US public to pull their heads out of the sand.

  5. Pingback: “Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (And Stick You with the Bill)” « Dandelion Salad

  6. Pingback: Ron Paul interview on CNN 1-18-07 (video) « Dandelion Salad

  7. Bump Start the economy, give Food Stamps to Retiree’s, Disabled, and Veterans. Get the food on the table, and the cash will come back ino the Economy.

    Change welfare reform, so that the Father figure can stay at the home to help with the Up-Bringing of the Single family Unit. This is not to be an open ended solution, but help familie stay together, encouraging work, but with adequate time for training, or Educationl needs.

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