Bush Stimulus Package - DEAL or DUD? SOUND OFF

reply to post by Dave Rabbit

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Seeing as how this is FIAT MONEY with no gold backing, it is intrinsically worthless in and of itself. PERIOD! Ink on paper with some puppets signature on it does not give it value--only solid backing does!

Use the money (toilet paper) for something that will help you SURVIVE!

I am going to invest it in a greenhouse to grow food which I can pretty much have food from it all year round. Veggies taste better than dirty inked paper and when there is only worthless paper, are you going to eat that??

So, Yes, this bribe/rebate/assistance is helpful, but it won't turn the ship around and the iceberg is dead ahead!

Let's hear suggestions from other members of Useful Ideas!

i think this is a dud. Here's why.

The federal reserve and the treasury dept steer monetary policy.

The federal reserve has welcomed inflation ( bernanke is traumatized by deflaton and spent his life studying great depression). The federal reserve has decided to lower interest rates from 5 % to 2% appox. This has driven down the value of the dollar in exchange for other currency's. The dollar has fallen 15% in the last year alone against the euro.

So basically each dollar in your pocked has lost 15 cents or 15% of it value = purchasing power. yes as someone pointed out it is not "worth" anything but fiat money (money not backed by gold or silver) is a confidence game and as long as one can use this in exchange for goods it has a value.

Take the amount of money you made last year. Assuming you make the same or close this year, you can substract 15% of that money from this year's earnings because that is equal to the amount of purchasing power you lost. This will be reflected in your dollar not going as far toward your purchases. My guess is that (if you are lucky enought to have a job still) 15% of your income is alot more than $600 (amount of rebate check).
So in reality this stimulus check is bascially the gov't/fed being kind enough to pay you to buy alot of lube as they continue to bend you over.

In the past the U.S has been able to get away with depreciating currency and export the inflation throughout the world while prices at home stay pretty low, thanks to china and japan (and europe to lesser degree) keeping their currency's weak to keep their exports high. The problem now is that Deregulation and lack of supervision in over the counter derivatives trading regarding commodity futures in american and on the Ice exchange in europe has allowed tremendous speculation in oil and food commodity's. This has caused prices to SOAR and food and energy prices to rise for consumers in america, on top of the fact that China and Japan have allowed their currency's to appreciate faster than usual, causing higher prices in their imported goods as well.

The Commodity futures market is so poorly regulated thanks to believe it or not a ton of lobbying by banks and corporations (especially.....ENRON) in the late 90's) that these speculative bubbles have been allowed to occur, the doors in washington revolve very smoothly from gov't organizations to private organizations and that opens the door for a huge moral hazard you could drive a truck through.

P.S with higher feed prices for farmers expect even more upward pressure on prices as long as the interest rates are accomodative by the fed. Oh ya and monsanto is in bed with the gov't and they are making a pretty penny lately. what a co-incidence.

[edit on 6-5-2008 by cpdaman]