Here's that old crank Ron Paul (R-TX) talking about the unconstitutional move by the House of Representatives to tax AIG bonuses at a 90% rate. Paul also mentions a........somewhat larger issue that has received virtually no media coverage.
Regarding the minor issue, the AIG bonuses, the usual partisan jibber-jabber is illustrated by the following quotes:
"The American people demand protection and that's what we're doing today," said Rep. Charles Rangel, D-N.Y., chairman of the tax-writing House Ways and Means Committee.
But Minority Leader John Boehner, R-Ohio, called the bill "a political circus" diverting attention from why the administration hadn't done more to block the bonuses before they were paid.
I'd like to thank Charlie Rangel for "protecting" the America people, and taxing those AIG sob's to get back the $165 million in bonus money that our government approved to begin with. That'll really help solve the recession, I'm sure. If any of you think I'm being satirical, you're absolutely right. Those AIG bonuses are a drop in the bucket, and recouping that money won't make a bit of difference. As for Boehner, while the AIG follies are definitely a political circus, it should be noted that nearly half the House Republicans (85 Yea, 87 Nay) voted to tax the AIG bonuses too. Democrats (243 Yea, 6 Nay) were almost unanimously in favor of the sorry display of sideshow populism.
But enough about the minor issue, the distraction. Let's get to the major issue, the titanic event that nobody is talking about, except for a few "cranks" like Ron Paul. Let's talk about the issue that SHOULD be headline news - The Federal Reserve is printing $1.15 trillion and adding it to the money supply. There are no assets backing the $1.15 trillion of course, and this move is as clear an act of desperation as you will see from the Fed. In fact, it's unprecedented. The usual response by the Fed to a recession is to cut interest rates, but that move has already been made. Interest rates are about as low as they can go, so the Fed is manufacturing money out of thin air in an effort to stop the recession. The dangers are many. First of all, if this doesn't work, the Fed has no other moves to make. This is the end of the line. Second, printing money devalues the dollar. As Ron Paul mentioned, the dollar dropped 4.5% in two days after the Fed announced it was cranking up the printing press. This means the government just took more money from Americans without a vote. Third, even if this does work to stave off a depression, which is highly questionable, it elevates the risk of inflation or hyperinflation down the road, and there is only one way out of an inflationary spiral - another recession.
So I really hope Fed Chairman Ben Bernanke is the smartest person in the history of the world, though his incorrect forecasting of the economic crisis says otherwise (I mean this an no disrespect to Bernanke. Almost everyone else was wrong too), because now I'm officially scared that our government might destroy virtually ALL the wealth of the average citizen in this country.
And in case anyone has forgotten, the REALLY BIG economic crisis, the unfunded entitlement liabilities, is still out there, moving closer and closer, like an economic tsunami about to swamp our country. No wonder gun sales are skyrocketing.
But let's get outraged over AIG bonuses instead. That's very helpful. And wasn't Obama cool on Jay Leno last night ? Except for when he was making fun of cripples, that is.
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