So we have news this evening that the House has passed the Democrat spending bill by a margin of 244 to 188, with all Republicans and 11 Democrats voting against it. It is nothing but a Democrat bill, from start to finish. Now we get to see how little the Senate cares for our children and their children.
The Democrats have damned our future for their present desires, mortgaging our children’s labors for the sake of their do-nothing dalliances. The Republicans are no better, as they favored a plan that was only half as bad. The key paragraph, emphasis added:
Meanwhile, House Republican leaders were standing firm in their opposition to the stimulus plan. Just ahead of the House vote, they insisted that their own plan, focusing on tax relief, would create twice as many new jobs — 6.2 million — as the plan Obama is pushing, while costing about half as much.
Half as much. As in more than $400 thousand million dollars in new spending, on top of the $850 thousand million that the Republican leadership gave blessing to late last year, all of which was printed on completely combustible currency. Despicable. And in 18 months time they will come begging for our vote, promising “change in Washington!” Yeah, we’ve heard that one before. Ain’t buying it this time, either. They’re as bad as competing mobs extorting protection money – “Give us what we want, or we’ll turn you over to Jimmy ovuh deh, and he’ll get twice as much from ya as we will, so pay up, capice?”
Of course, this bill puts more pressure on the world to buy our debt, which they will have even less incentive to do. After all, they already own trillions of it, and every extra dollar they buy today is a dollar less they’ll have tomorrow, since we’ll pay them back with devalued paper instead of actual valuables. If this bill passes the Senate and gets signed by the president, we’re in an unprecedented world of trouble. How much trouble?
I was suspicious of those numbers, thinking they weren’t adjusted for inflation. Using the Westegg inflation calculator, which accepts values above $10m, we get:
ww1 (1917): $2.8b ($44,915,710,692.35 in 2007)
1929 crash: $1.0b ($12,003,436,821.60 in 2007)
WW2 (1945): $1.5b ($17,111,852,993.34 in 2007)
1950s (1955) $1.0b ($ 7,663,310,400.22 in 2007)
nukes (1960s): $1.3b ($ 9,007,604,057.68 in 2007)
vietnam (1968): $3.3b ($19,466,952,393.20 in 2007)
s&l, 86-87: $8.0b ($14,940,471,961.68 in 2007)
bubble era y2k: $3.5b ($ 4,176,127,343.95 in 2007)
dec07: $ 15.4b
jan08: $ 45.7b
feb08: $ 60.2b
mar08: $ 94.5b (more than 10x the 1919 to 2007 record)
apr08: $135.4b (more than the inflation adjusted 1919 to 2007 sum)
The Fed’s printing tripled between December 07 and January 08. It jumped another 33% the next month, then another 33%, then another 30%. In other words, over the course of only 4 months, the borrowings increased by a factor of almost nine. The multiplication over the last year is left as an exercise to the reader.
The video is right. The US banking crisis that began in 2008 is on a different scale than anything before it. It is bigger than the sum of everything that came before it. We are facing a national monetary crisis that could start any day now. All the money that has been printed is simply waiting in the electronic balance sheets of the banks, and as soon as they start loaning it out, we enter hyperinflation hell. The only thing that can avoid it is the return of the money to the Fed’s balance sheet, where they can conveniently (and legally, but not lawfully) erase it as if it never existed.
I’m reminded of the line from Casablanca: “The leading banker in Amsterdam is now the pastry chef in our kitchen.” If Ben Bernanke isn’t careful (and he hasn’t been so far, with his Keynesian spell-casting) we will all be forced into labor against our will, for the Bible’s proverbs about labor, debt, and payment are true, whether you believe them or not. The rich rules over the poor, and the borrower becomes the lender’s slave and if anyone is not willing to work, then he is not to eat, either.
If you think central bankers know what they are doing, think again.