To whom it may concern in the United States Congress,
You were our last hope against this unnecessary bailout plan, yet you were swayed not by your constituents (for a reminder: the people who vote for you to represent their collective ideals), but by completely unrelated incentives tacked onto the bill like flies on road kill. Yes, this whole issue stinks to high heaven of everything we have feared most from our government – our elected representatives ignoring the clear opinions of a large majority of their constituents, flaunting their independence from the general populace, falling hard for scare tactics from their fellow politicians, and being gullible enough to believe that such hastily added on goodies will actually make up for the tax burden that rests on all of our shoulders. Not to forget, but this bill is asking for unprecedented abuse by the Treasury Department along with the companies who will be using this money despite the oversights tacked on at the last minute.
Why am I raising such a fuss? This money must come from somewhere, whether it be through more taxes, more loans from foreign nations, or the printing of more money. No one option is best, and I shall explain why. Raising taxes is not a viable solution when our economy is so unstable, especially since the burden would likely be placed upon the backs of those who are already having trouble affording food, fuel, and other basic necessities. The middle class cannot support more taxes, especially with an unprecedented amount of household debt. The rich could afford to pay more taxes, but let’s consider who you, our Congress, pander to most often. Moving onto loans… Surely you are aware of our mounting national debt; if not then I kindly ask that you read my first post. Our annual interest payments on the national debt make it seem unlikely that our financial credit will continue to stand in any sort of esteem among the lenders in the international community.
Two options down, one more to go: printing more money. There is a very common problem with faith-backed currencies, and that problem is that they are faith-backed. The value of a currency falls when people (predominately investors) lose faith in said currency. Printing more money is a surefire way to lose said faith. Take a look at Zimbabwe or Germany’s early Weimar Republic for a couple examples of what happens when a currency is sent to the hell of hyperinflation. The last thing that any of us wants to do is pay for a loaf of bread with a wheelbarrow full of worthless cash. So now you see that there are no good options to actually pay for this bailout package, and yes, you have placed our nation into an even worse monetary conundrum than we were in to begin with.
My irritation with this is far from finished. The dust has yet to settle from your “historic bailout” yet stocks around the world continue to fall. Inflation continues to rise. Americans are losing their pensions, 401Ks, and the guarantees of Social Security at an unprecedented rate, yet you line the pockets of failed companies rather than aid your own citizens directly. The Trickle-down theory does not work in any other than the theoretical realm; three decades of its failures should have taught you that. It’s time for you to get a grip on reality and bailout those who really need it – the ordinary citizens: the families who are spending an arm and a leg to raise children, or struggling to keep their homes, or terrified that retirement is right around the corner but there will be no money left to support them in their old age.
You have failed us, Congress. You have been disconnected from the American public for so long that you don’t even know how to help those you were supposed to represent. Luckily for those ordinary folks such as myself the election is right around the corner. Do not expect to keep your office if you have the gall to slap us in the face like you did. Hopefully the future will bring in a brighter crowd of Congressmen who actually possess enough of a spine to stand up against scare tactics and truly aid the general public.
Sincerely,
An Unhappy Citizen
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being gullible enough to believe that such hastily added on goodies will actually make up for the tax burden that rests on all of our shoulders.
They do this kind of grandstanding at the beginning of every bill about which they might appear principled. They did it with emergency war budget authorisations, they did it with the FISA/wiretap bill, etc. A few billion dollars of pork projects and other "incentives" buried on page 183 later, their vote has been bought.
The last thing that any of us wants to do is pay for a loaf of bread with a wheelbarrow full of worthless cash.
First, the real problem with inflation is not the inconvenience of paying for a loaf of bread with a prodigious amount of cash; it is that the cash rapidly becomes worthless, sometimes in a matter of hours. Sellers charge premiums for accepting such short term-value cash which inflates prices; shoppers run to spend money while it's still worth something, creating scarcity and thereby inflating prices. It feeds on itself in a rapid, self-propelled, and vicious cycle of exponential monetary growth.
Two, creditors suffer when the value of their debt is uh, "monetised" into nothingness. Nothing anyone owes anyone is worth anything anymore.
Three, the gap between price inflation and wage adjustment hurts the purchasing power of everyone.
The dust has yet to settle from your “historic bailout” yet stocks around the world continue to fall.
It does not seem that the markets reacted with much interest to the bailout.
Of course, part of the problem is profoundly global in nature. Compared to the top five US commercial banks, the Eurozone is in a far, far worse position of overleverage. UBS debt-to-equity is 52:1 - Deutschebank 53:1. Most of the growth of the Eurozone in the past few years has been an illusion because so much of it has been monetary growth. It's actually quite likely that the US, with its 4-6:1 bank leverage, may become something of a safe haven again. When this is through with the Eurozone, their "bailout" is going to have to be much larger.
It’s time for you to get a grip on reality and bailout those who really need it – the ordinary citizens: the families who are spending an arm and a leg to raise children, or struggling to keep their homes, or terrified that retirement is right around the corner but there will be no money left to support them in their old age.
Why do you say that? Why is it time to bail anyone out, so to speak?
Hopefully the future will bring in a brighter crowd of Congressmen who actually possess enough of a spine to stand up against scare tactics and truly aid the general public.
Wouldn't the most helpful thing be for them to fuck off?
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