Stop the Bleeding II

They just don't get it. Billions or trillions it doesn't seem to matter.

The "stimulus package" is nothing more than the appropriations bill that is passed in every congress. Well actually it is something more. It has a LOT more in it and it has been spun so many ways the words are falling off the pages of the bill.

The new prez is now ticked because the love fest he received during the campaign is now turning hostile. His critics are saying that throwing all this money down the toilet is a bad idea. After all a LOT of the bill is not stimulus at all, but pet projects that involve *government* facilities and programs.

The prez thinks "If we do not move swiftly to sign [the act] into law, an economy that is already in crisis will be faced with catastrophe," he said.

Here's one more example of really backward thinking by our new 'savior of the world.' Doing SOMETHING even if it's a really bad idea is better than doing nothing.

Let's make that personal. My kid needs a new pair of shoes. He doesn't have the money right now. I'm going to "stimulate" his economy by getting him a credit card. After all, what kind of a father would I be if I didn't get him new shoes. Let's say he's fairly responsible with that card and finds a pair of shoes for $100. No big deal right? It's only $100. Since he doesn't have any money he can't pay the bill for 6 months. After six-months the $100 grows to $117 with interest ~ 17% more.

He gets a job taking care of the neighbors cat for a while. He gets his $117 and pays the bill. Case closed, no harm, no foul right? Wrong. He LOST $17 because I "stimulated" his economy. The actual money didn't hit the economy for 6 MONTHS. There was no stimulation and my sons shoes cost him more than they should have.

Go back to the billions and trillions of dollars. Give the people their $1,000 checks out of money WE DON'T HAVE (i.e credit). Add a simple 17% interest and you have $1170 for the $1k check.

Again no big deal right? Wrong. First of all that's 17% simple interest. There's no such thing when it comes to debt. Your interest will be more than that if you don't pay the bill. And now we multiply the $1k check by 100,000,000 (a rough estimate based on 300 million Americans. Now we have 100 BILLION dollars in "stimulus." Add the interest and we have $1.7 BILLION dollars in interest alone. And that assumes it gets paid off immediately.

Remember now, that money isn't real. It will come from "deficit" spending - borrowing money we don't have. The interest alone will be difficult if not impossible to pay back - not to mention the principle.

I have 1.7 billion reasons to disagree that doing "something" is better than doing "nothing."

Good bye America, it was nice knowing you.