This past Wednesday the US House of Representatives passed a $819 billion stimulus package. The package, if enacted, will provide the governement with an extended coverage over the US economy by reshaping policy energy, education, health care, and social problems. The Senate is also preparing a measure that is near $900 billion. While both of these bills are being looked over in the Washington D.C. either one, if completly passed, will raise the US deficit to levels that have not been seen since World War II.
The main question is not "will either of these packages be passed" since President Obama has said that he wants a finale compromised version by Feb. 13th, the question for most people is "where are we getting all of this money from?"
While the House's stimulus package was being passed, leaders from China and Russia were blaming the downward turn of the world economy on US-led finacial system. With their investments in Fannie Mae and Freddie Mac, who had been the biggest foriegn investors in bonds the morgage giants for years, many Chinese leaders have been suprised and upset over the economic crisises. The Wall Street journal reported that "there is no evidence Beijing is pulling back on buying U.S. Treasurys" but that the Chinese central bank did quietly stop lending out its Treasury holdings for fear that borrowers will go bankrupt.
I don't know how the rest of the country feels, but this reporter feels like the country is on a colision course with bad economic policies and a rising debt. The results will not be pretty!!!! More to come as this long story develops further.
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Don't forget what happened during The Depression. The government took action and went into debt, but the country emerged stronger than ever just 15 years later.
ReplyDeleteAh, yes but that was due to us getting into World War II. This seems different, we are in this mess because of flawed economic theories and war hasn't saved us yet.
ReplyDeleteGive Obama and the new Congress a shot before determining it won't work.
ReplyDeleteIt's not just Obama, he has just gotten into office and has had to get everything prepared. I am blaming the entire government. Our government is supposed to work as a team and just blaming a president won't cut it. We must also lay blame with congress, and to a lesser degree, the courts. I am holding the United States government in my focus when the blame needs to be placed.
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