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White house and Fed scramble to launch economic stimulus plan

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posted on Jan, 18 2008 @ 12:16 AM
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haven't seen this here so here goes

biz.yahoo.com...


Aides to lawmakers involved in the talks said the White House is pressing for tax rebates of $800 for individuals and $1,600 for married couples. Lawmakers were likely to settle on a $500 rebate for individuals, said an aide involved in the talks, with details for couples and people with children still being negotiated


gotta play devils advocate how much will this help and who is to say people wont save it or use it to pay down credit card debt or other debt (not really going back into economy)


Especially important is making sure a plan can put cash into the hands of poor people and the middle class, who are most likely to spend it right away, he said, though he added that research shows affluent people also spend some of their rebates



The fed and white house are working frantically to put together some sort of economic stimulus package to help boost the economy.


like i said, perhaps some will try to pay off some of their soaring credit card debt, perhaps some will decide to save it? Don't get me wrong i like the way they are being pro-active, however the urgency in which they are acting should get your attention.

All is not well in the economy and it is likely much worse than is discussed openly. Before you toss that opinion aside consider the economy is largely made up of consumer spending. Should Bubble vision come out and say things are looking truly ugly than people would cut down drastically on spending and save more. This would accelerate the downturn in consumer spending and also unemployment which has the potential to be a vicious cycle.




posted on Jan, 18 2008 @ 12:48 AM
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Won't this just boost inflation further AND further depreciate the value of the dollar? I mean, you can't just give everyone free money without affecting the economy. You might get spending boosted, but things will just cost more with the increase in money supply created by this "injection".

It's the same flawed policy that the central banks are following with the capital injections to the banking sector. By increasing the money supply, you increase inflation and devalue your currency.



posted on Jan, 18 2008 @ 01:03 AM
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Good thing that wackjob Ron Paul isnt going to be pres. Really.. That moron had no idea what he was talking about...

::EDIT::
/sarcasm

[edit on 1/18/2008 by ThichHeaded]



posted on Jan, 18 2008 @ 09:32 AM
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well Stu i think that is correct

although the FED's "injections" are temporary which means they are loans

which have to be rolled over

I don't blame the white house for thinking this up, because i can't think of

ONE SINGLE move they could make that would help citizens which would

not have potential negative side effects.

China and Japan keeping their currency's low allows our consumer prices to withstand "out of control" inflationary pressures

(for their products)

Gulf country's re-investing in U.S assets leads to trading oil in $, and as

long as that continues inflation will not become "hyper". Should Soverign

wealth funds aggresively seek new avenues to invest the result could be

a shift to selling oil into a basket of currency's as well as country's no

longer pegging their currency to the dollar, which i believe would be a big

problem because that would end in effect our unique ability (by having

the world reserve currency) to EXPORT inflation.

I think the oil and food inflations are a supply and demand problem, note

food prices are rising faster (or they had been) in many other country's

outside of the $.

any potential hyperinflation and deflation will be IMO based on political decisions

P.S the bigger impact from the economic stimulus package may be tax breaks on U.S businesses which are centered on incentives to create jobs or at least that is the idea


[edit on 18-1-2008 by cpdaman]

[edit on 18-1-2008 by cpdaman]



posted on Jan, 18 2008 @ 10:56 AM
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apparently bush's speech has helped the financial economy as stock's fell while he spoke and the real economy may just get some kind of psychological boost- i dunno.

news.yahoo.com...;_ylt=AhU5FanMrivaHMGooqk7uZAT5LIF

the biggest questions i have is will their be a war, who would profit from such a war (big oil? big banks?)

and will emerging country's economy's continue to grow or be more effected by a stronger slow down in the united states and then possibly the UK.

Either way almost all economists predict the standard of living is going south domestically, with my biggest concern being our exposure to unemployment as consumers stop spending in this "service" economy.



posted on Jan, 18 2008 @ 11:03 AM
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Remember to take that refund check and God forbid you use it to pay your late morgage or fill your gas tank.!!!!!!!!!!!!!!!!!!


That is un American, the American thing to do is go and spend on Chinese goods, remember we have to spend, spend and spend!!!!!!!!!!!!!!!!!!!


Keep that trade deficit growing and the national debt reaching to your children, children and beyong the unborn!!!!!!!!!!!!!!!!!!!!



posted on Jan, 18 2008 @ 05:24 PM
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Maybe I am way off here, and please correct me if I am wrong, but how exactly is $500 going to help someone struggling to pay off their mortgage or any other bills for that matter, collectively? This is a one time payment, right? So you help yourself with some grocery bills (50 bucks), a car payment (100 bucks) and house payments (350 bucks). I just don't see how this is going to help someone who's spending over their budget, and there seems to be a lot of people doing so.



posted on Jan, 18 2008 @ 07:36 PM
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Actually is not going to do a darn thing but to boost the numbers for one quarter prior to election so people get the illusion that the economy is recovering, that if, only if it works.

The refund checks will be targeting the poor in American that do not really pay much taxes to begin with and that will take those checks right to the retail stores (wal-mart) and spend then, usually in one shopping trip and is not going to be food involved.



posted on Jan, 18 2008 @ 10:29 PM
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honestly perhaps they have more ideas and policy's for fiscal stimuls which will aid small businesses or something

perhaps this act was so that the gov't could say hey we did something, either that or this is the beginning of helicopter george bush dumping more and more $ using the same creativity that the financial alchemists used to create all these cdo's , siv's and the like.



posted on Jan, 18 2008 @ 10:47 PM
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... i get the feeling they are under the idea , that bringing the economy to its knee's helps the neo-cons agender some what.
As said above, $500 per person will flood the market with MORE Money.
It will only help for about, a month? At most?
So whats to happen in March, when the spending has stopped, mortgage payments come back and credit card payments re-occur.

Bush said as of late '' the economy is strong ''
now its failing
his plan, to save it is give people diddly squat.

I think its obvious they have no intention on saving.



posted on Jan, 18 2008 @ 11:58 PM
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Its sounds nice and all until people realize the nice piece of interest attached to it on top of our current debt...

ahh how nice they make us think we are getting something back when in reality the only ones getting money here are the bankers...


With that said, I say to American this, Make a Statement with your refund buy a gun and 1k of Ammo to go with it, let them know we still preserve the spirit of resistance

Don't spend it on a house you'll never pay off, don't spend it to pay of credit that can never be repaid, don't spend it on a plasma screen TV that will be useless in the not so distant future...

Spend it on a gun, American made.

[edit on 19-1-2008 by C0le]



posted on Jan, 19 2008 @ 01:46 AM
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sweet time to go buy some crack and alcohol to waste the day away! *sarcasm*

well..if we do get this money..all it is for me is book money for school..and maybe just maybe! a new pair of vans slip-on shoes.



posted on Jan, 19 2008 @ 02:20 AM
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I think the rebates are a stupid idea ware are they going to get the money and after the people spend it they are right back ware they started.

I think they should cut taxes on the federal income tax and gas tax.



posted on Jan, 19 2008 @ 02:33 AM
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Originally posted by UScitizen
I think the rebates are a stupid idea ware are they going to get the money and after the people spend it they are right back ware they started.

I think they should cut taxes on the federal income tax and gas tax.


Watch this and your answers as to where they get the money will become clear, as will the reason they won't cut the income tax.

Of course you should always follow up with your own research even though it will lead you to the same conclusion.

Google Video Link


[edit on 19-1-2008 by C0le]



posted on Jan, 19 2008 @ 03:35 AM
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i had already e-mailed my Senator Graham (SC) and expressed
my position that if there is a rebate/economic stimulus package
in our future...there ought to be a better formula of equitable
distribution than the last rebate model.
Back then it was refunds for tax-payers...

What about the millions of people that are on SS disability and/or disabled vets and others on fixed incomes who don't receive enough money
to be annual taxpayers on their 1040 income statements.

All of us are left to hang in the wind because we havn't paid any
additional state or federal taxes (on our annual tax returns which we religiously file).
Meanwhile, i see on the media, where there are lots of rebate dollars
spent on Faux handbags & overpriced/overhyped designer sport shoes,
while the fixed income crowd uses a great part of their retirement monies to pay the property tax/excise tax and various other levies for money,
our meager funds are siphoned off (confiscated) by that slew of Tax Extortionists in the tiers of legislators at city-county-state-federal levels... as those many of us (other silent majority) basically keep the govt tax machine lubricated...
whereas the chronically poor fritter away the targeted bonanza rebate money on frivilous "bling & status" crud.


there- - i'm done with a portion of a much larger rant


[edit on 19-1-2008 by St Udio]



posted on Jan, 19 2008 @ 05:40 AM
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What an irony! It looks like President Bush has rolled out a policy used by Robert Mugabe in Zimbabwe.

Short of money? No problem, lets print some more off!!

Oh when shall people learn that fiat currency is a doomed experiment.



posted on Jan, 19 2008 @ 06:44 AM
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When I heard the news about this completely out to lunch administration; the epitome of incompetence... I thought, why don't they take this money, and put into infrastructure improvement like fixing our roads and bridges. It would create jobs, and those people who made the money fixing the roads when then turn around and spend it. Why instead of wasting trillions of dollars in Iraq didn't we put the money into R&D into alternative energies. Can you imagine how many that would employ, and the research that spin out of that endeavor? but instead we get more of same bogus BS, and research has shown that the tax rebates only 15% actually is spent on consumer goods....Someone important recently said that the definition of insanity is repeating the same thing over and over trying to get a different result, but it never happens.

And further more, the Democrat who assumes power is going to have to clean up this mess, and of course the Republicans are going to blame them for raising taxes, when they roll back his stupid rebate programs. God, I really hope some of you people who didn't see it before are finally getting it now!!!



posted on Jan, 19 2008 @ 08:11 AM
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want to stick it to the powers that be???
cash your rebate check, don't deposit into the bank, don't spend it, just hide it under your mattress for a year or so.
if we all did this, they wouldn't know what the heck was going on!

personally, I don't even need $500 to get my credit card balance back down to 0, and that's the first thing I am gonna do, any left over will probably go into silver. unless of course the lousey economy hits my job, then maybe I'll use some of it to launch my business idea which won't really create any jobs. but, I hope they don't think I am gonna blow it on needless crap that I don't need. because that ain't gonna happen.

but, I was listening to the fed's speech that day when he said what he thought was needed. and I'm pretty sure he said that this stimulus package shouldn't be just added to the gov'ts deficit. so, where is the money coming from is what I want to know. this isn't gonna be a good thing if the money is siphoned from areas that need the money, ya know, like they cut the funding for the states and in the end our property taxes double or something like that. I'm sure if they looked real hard they could find a way to cut that much money by ending some of the wasteful things that they are using it for, but they could be doing that know, and that wasteful spending has grown the past couple of years if not longer than that--talking about the pork here.

but well, anywho....just hope they don't expect to see any money that they give me to floating around in the economy anytime soon. somewhere down the line, I am sure I am gonna get hit with the cost of this program also. and then, I am gonna need that money to bail myself out.



posted on Jan, 19 2008 @ 08:27 AM
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I'll make the same comment I recently made on a similar thread:

And here, folks, you have our government's way of managing the economy. Commony referred to as the Katrina Economic Policy. Essentially what it says is: don't acknowledge the storm you see coming; when you do, characterize it as far less serious than it is; then, when it's just about too late, drive some ice around the country for several weeks and say you're doing something.

And these monkeys get to write books and give speeches at universities touting all their experience and knowledge. Unbelievable. And the sad part is, no one goes to jail (oh, sure, if you're Enron and you mislead your investors you go to jail but not if you're the government --- they just skate and amasse their personal fortunes) and no one is held accountable. No mention of cutting back government spending. No mention of taking a look at the '07 $430B military budget. No mention of cutting back on the hundreds-of-billions we hand out to foreign countries (after we go BORROW those hundreds-of-billions from other foreign countries).

And most of the people are lining-up to elect yet another chucklehead who'll keep financing the wars, borrowing overseas and sustaining business as usual. Oh joy. Which way to the free soup?




[edit on 19-1-2008 by jtma508]



posted on Jan, 19 2008 @ 08:37 AM
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I dont think this check is going to do a damn thing to "jump start" the economy AND I read this morning on Yahoo business that the earliest these checks would go out is June. By that time many will have lost their houses, cars, jobs etc. 5 months is a very long time to people who are juggling bills because of inflation. By the time that check gets out it will be survival $$$ not consumer $$$.



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