700 Billion Dollars of Stupid
700 billion dollars in non-revenue deficit spending… I’m pretty sure the government hate us. In 1979, adjusted to today’s dollars, the total US debt was 1.5 billion dollars. When congress passes, and the President signs the 700 billion dollar Wall Street bailout, the debt the US government will have generated so far in 2008 will be 1.7 billion dollars.
This single payout will have a bigger impact on inflation than any factor in the last 50 years. As currently written, the bill also doesn’t generate revenue. It is practically free money for struggling banks. Even if fiscal conservatives, anti-foreclosure democrats and new banking regulation proponents get all of the amendments added to this legislation that they want, the 700 billion dollars will still big the biggest financial blunder in the history of the United States.
There is no amount of amendments that can be made to this bill that make it anything less than stupid. If it were structured like the AIG buyout, which was high-interest and an ownership stake (meaning the Government may actually profit from the deal) there would be some benefit to it. I have little faith that there will be any revenue generating potential in this bill because there are too many sheep in the US that believe the doom and gloom predictions from the administration.
We’ll be paying for this for the rest of our lives. Our children will be paying for this for the rest of their lives. A lot was made a few years ago about the collapse of the Roman empire, the longest standing in the world (why it generated 4 or 5 high profile books in 2006 and 2007 I do not know). Unless the US realizes that we can’t put our problems off tomorrow and spend until we’re burried in debt, our nation won’t last another 50 years.
700 billion may save us from a recession in 2009, but it is going to cause a depression in 2020. I’ll bet you 700 billion on it.