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What's a "stimulus package" anyway?Victor Del Prete Paying off debt would be a real "stimulus" in my view. If Washington decides the path they are traveling down is irrational and actually started taking steps the right way, I would consider buying a new home to replace the one I sold a few years ago. But the way I see it the dollar's value is going to crumble away to nothing and all American wealth is being plundered. They just can't stimulate me. And the more people that wake up to this fact the fewer casualties there will be. The FED has been poking the economy with a stimulator a lot lately. Instead of lowering some trillions of debt by pulling back troops who are stationed in over 170 countries worldwide, the FED solves their financial crisis with more debt. They have essentially maxed out a credit card on every U.S. citizen, and now are paying that credit card by borrowing from another. Washington reports its GDP numbers and exaggerates them using creative econometrics, namely hedonics and imputations, both of which are based on the false assumption that an economy will always grow at a certain rate. This of course is wrong, but it's why they will do absolutely anything to make it so. Because if their GDP formula fails then the whole house of cards comes down. #1 Stimulator: Lies They under-report the nation's unemployment rate by leaving all sorts of workers out of the equation. The IT industry is full of skilled contractors who aren't reported, but they're the first ones to be released when a company starts cutting back. Washington only counts people who claim unemployment benefits, which excludes 1099 workers, self employed, consultants, and immigrants on H-1B visa status. These are people who all previously contributed to the economy who no longer do and don't file for unemployment benefits, and therefore aren't counted. Washington needs to make people and businesses think everything is good enough to invest in the future. If businesses start hiring again with growth in mind then the economy gets back on track. That leads to everything coming out of Washington reporting the state of the union with a rosey outlook. #2 Stimulator: Dilution The other part of the stimuli will be cash. They're going to dump tons of cash into the system to try and keep their backward system running. Unfortunately what they will accomplish in the long run will be hyper-inflation. Everyone knows you can't divide a fish in half and have two fish, you still only have one fish. If they told the entire country to cut their dollars in half with scissors, and spend each piece as if it was whole, nothing would be accomplished, no wealth would be created. But that is essentially what they're doing. The FED is merely concentrating their effort to dig the hole deeper and deeper. They WILL stimulate this economy, but the air will leak out again. Our balloon is closed at the other end by staples made in China and nothing will keep the hot air from leaking until Washington gets its house in order. There is no accountability because nobody can see the forest for the trees anymore. Everywhere you look there is deception, fraud, lies, scandal, and theft. Everything is wrong, nothing is right, and except for a few they're all complicit. Our graduates from top ivy-league schools enter Washington into this system but don't have the basic common sense to know that it's all backward, or they don't have the courage to stand up against it. The ones who do are barreled over by the train. The Federal Reserve is running the Ponzi scheme responsible for all this mess, and the federal jobs created up there in Washington, no matter which ones, amount to either directly or indirectly promoting that system of deception. So when I imagine the physical representation of their "stimulus package", it looks like a box full of lies and a pair of scissors for everyone to cut their money into smaller pieces with a pretty ribbon on top. Victor Del Prete 321gold Ltd |
