Paying and suffering as the government gets bigger
Today's Financial News - Posted January 8, 2009
We turn to our government for support and guidance, but it seems all it does is disappoint us time and time again. Obama’s trillion-dollar deficit may be the feather that trips the global balance of power.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): Our government has gone mad. Crazed by their addiction to votes and incessant desire to attack their cross-aisle opponents, our legislators have lost contact with the foundation of the country and have put its future as a superpower at great risk.For evidence of a government-out-of-control all you have to do is look to legislation quietly passed last August that greatly increases the nation’s laws against selling products containing lead.
As if it hat nothing better to do and because no vote-savvy politician could ever vote “nay” on legislation that remotely involves the “health” of our nation’s children, Washington created over-the-top regulations that make it nearly impossible for many retailers to sell children’s toys or any other product that may come in contact with a youngster.
Giants like Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) will have no trouble complying with the vague new laws; they will merely pass the burden on to their suppliers. But smaller stores, especially those in the multibillion-dollar consignment industry are in big trouble.
Washington hates the middle class
Sadly, many of them have no idea what their elected officials have done to their businesses. When the new regulations go into effect in just over a month, they may no longer be able to sell up to a third of the products on their shelves.
Oh yes, big government at its finest.
Officials swear they are working to find an answer to the problems, but I do not have high hopes. A month is a short amount of time to get anything done in Washington.
My solution? Make countries like China that export the lead-filled products bear the burden, not American citizens. We have enough on our plates.
While I am on the subject of our government’s major mistakes and China, how long do you think it will be until China gets enough of our debt?
The not-so-friendly country, which is already the largest holder of American Treasuries, has been lining up to lend us its reserves. But now that its economy has made America look like a boomtown, China needs a major government-funded bailout of its own. It cannot afford to fund our “stimulus” and its own at the same time.
When China says no more
Just when Obama is promising a trillion-dollar deficit for years to come, our biggest “enabler” is backing away from the table.
It begs the question of how long it will be until the “supply” of American debt surpasses the demand to invest in the country?
The Treasury may be dumping truckloads of liquidity into the market, lowering interest-rates today. But eventually it will satiate global demand and the nation’s borrowing costs will rise. When Treasury rates jump, the interest rates you and I pay for cars, school, mortgages and credit cards will soar.
It should be obvious a short-term stimulus will lead to long-term trouble. No matter how good of a leader you think Obama is, it will be impossible to get out of this mess without enduring great pain.
Instead of ripping the bandage off in one, teeth-gritting pull, our elected officials and their addiction to looking good in the eyes of voters have decided to extend the pain by pulling the bandage off one twitch at a time.
Until our politicians care about the country and its citizens before themselves, the pain is going to increase. There is no quick fix to this economic crisis, no matter how much money we throw at it.
Next Article: Want something to short? Check out this healthcare player
One Response to “Paying and suffering as the government gets bigger”
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down
January 8th, 2009 at 5:48 pm
How long is our Government going to try to pull the wool over us by lying to us about this Recession and how they are going to repair it? They know they are not going to repair it by putting money out there that has no meaning. We are being tricked by these elites who claim they are going up stabilize our economy. Where are they going to conjure up a trillion dollars? Bush, Bernanke, Pualson, Obama and all the rest are riding high while the rest of us are losing homes and jobs, etc. Why don’t they tell us the truth about how they ignored all the signs of this Recession and all the warnings they receive and ignored? When is our government going to finally admit their mistakes and work for the American People to which they were elected to do?