An American Fairy Tale. Let’s see if I get this right…

The govt takes the money from the taxpayers, puts it together with a huge wad of greenbacks the Fed has printed, moves those walnut shells around and bails out G.M., Goldman Sachs, Bear Stearns, J.P. Morgan and God-knows-who-else. Because of the huge wad, the true inflation rate stands at 6-7%.

Now, because of the housing bubble created by near zero interest rates by the Fed, Clinton’s Community Reinvestment Act, and Barney Frank in his playhouse, people lose their homes. Those people, the people employed in real estate, the construction industry, the mortgage industry, and the people in debt up to their ears because of those irresistible 0% interest rates can’t afford to buy things from businesses. On top of that, because of inflation, businesses have to pay more for stuff to make their stuff for people to buy. But nobody can afford to buy anything, so businesses start to fail. Add these employees that no longer have jobs to the ones that lost their homes. Oh, did I mention that the malls seem pretty, pretty empty this Christmas? Well, anyway, back to the story.

So govt moves the walnut shells around a bit, Congress threatens to pass some more monster tax bills such as the one incorrectly labeled “Healthcare,” the Fed prints another wad, and uh-oh…the rest of the world loses confidence in our dollar as it drops in value like a stone. Gee, that’s odd.

“Whoa,” say the people in the Big O’s cabinet, “We need to get together another photo op and throw a bone to the citizens to make them think we care about them!” You hear that familiar sound of shuffling walnut shells again.

So, they look under one of them and find some cash to throw at one segment of those heretofore mentioned group of taxpayers: the community of small business owners….well, uh…the ones that are left in the wake of the wad, the bubble, and the threatened monster tax bill that’s looming.

So the moral of the story is that the govt. rides up on the white horse on a path around the huge crater that was once an economy, and what? You got it…gives back but a tiny percentage of the taxpayer’s money, (worth less because of inflation) back to them. Pay no attention to that crater over there.

Whew! What a plan!

- JeffersonNotHamilton

Related Posts:

• If you haven’t noticed, it is WALL STREET who are the ones with their hands out to the government.
• Happy Days Are Here Again, Great Depression II.
• I’m speechless
• Does it surprise anyone that Goldman Sachs, former Treasury Secretary Henry Paulson company, is the biggest beneficiary of the AIG bailout?
• Where the money will go–$250 billion bank stakes

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