So the Federal Reserve dumped in another trillion dollars to save the economy ? According to an AP article by Jeannine Aversa, $1.25 billion this time around.
“The Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt to $200 billion.There is only one way this loan, and the others could be paid off. This will come directly from all the United States taxpayer’s pockets. Lets take a real hard look here at the economy as of late.”
Unemployment is way up, and expected to increase through 2010.
Exports are decreasing.
Trade deficit keeps increasing.
Businesses are closing at a record pace.
(Analysts are predicting 25% of retail stores will close by end of 2009.)
The housing market has collapsed.
Equity in all material possessions is decreasing.
Manufacturing is fleeing the United States.
The value of the dollar drops with every influx of Fed cash
(This will cause serious inflation.)
Some Interesting facts from a CBS news article by Mark Knoller here,
“The national debt is at a record $11 trillion dollars
And the government is running up mountains of debt with increasing speed. It took just over 5 ½ months for Uncle Sam to go another trillion dollars deeper in debt since hitting $10-trillion last September 30th. It’s the fastest jump in U.S. history. “
Over $400-billion in debt has been accrued in the 57 days since President Obama took office.”
The U.S. is running up so much debt so quickly, some investors are worried. Over the weekend, Chinese Premier Wen Jiabao, who says his country has about a trillion dollars invested in U.S. Treasury notes, said he wanted a guarantee. President Obama said Wen’s got nothing to worry about.
Not just the Chinese government, but every investor, can have absolute confidence in the soundness of investments in the United States,” he said on Saturday. That’s because the U.S. government’s power to tax stands behind all of its debt. If Uncle Sam ever needs a bailout, then as now, taxpayers get nailed.
It took the U.S. government 191 years – from 1791 until 1982 – to run up its first trillion dollars in debt. The second and third trillion got on the scoreboard much more quickly – each in just four years. By the time George W. Bush was inaugurated in 2001, the National Debt stood at $5.7 trillion. He ran up more debt faster than nearly all of his predecessors combined: just under $4.9 trillion. The National Debt stood at $10.6 trillon on the day Barack Obama took office. But if his budget projections are accurate, he’ll run up nearly as much government debt in four years as President Bush did in eight. “
With taxable revenue decreasing dramatically in the United States it is becoming painfully obvious as to the only solution available. Raise the current taxes, and create new ones. Nothing will be spared from taxation. Keep an eye on sales taxes, mileage taxes, alcohol taxes, marijuana taxes, food taxes, fuel taxes, and anything else that comes to mind.
Folks, It is going to get really ugly here, especially for the middle class. It is our children and grandchildren that will be stuck paying for this fiasco.
Thanks for reading.