If I Had a Hammer

Every time that you think it could not get worse, then the Government does something else. I could say it is a lot simpler and easier to simply print that amount of Currency, but it equates to the same thing. One of the basic elements of the Credit freeze is the fact that the Borrowers are not there. The basic Rendition is: I don’t want to pay Interest, especially high Interest, on Money I don’t need and cannot employ! Operating Revenues to cover Monthly Wages does not even equate to the $250 billion to be spent as of Today, let alone that near Trillion that the Fed has already pumped into the Economy, and the $700 billion that Paulson plans to blow. I will use the Word Inflation, though no one will listen as yet.

The McCain Plan is beautiful, my Estimate suggests that if it is implemented, the expected Inflation over the next 36 months will rise to an estimated 30%, rather than the pidley 20% Inflation expected from the current infusion of idiotic liquidity. McCain wants to allow the Baby Boomers a freebie cut in their Withdrawals taxation from their Retirement plans, in exactly those Years when they are expected to make the greatest draft on those Reserves. He also wants to fund those Plungers in the Markets by cutting their taxation by half; the restriction to Equities held at least one Year will disappear in Conference Committee, and McCain will sign the bill anyway. He simply wants to insert the lack of Value pressed from the Markets recently back into the Markets, automatically ensuring more Crisis ahead.

The real trouble comes in the fact that the position of Fixed Incomes will be seriously disabled by a conjunction of these Plans. Leadership thinks this is creditable, but forgets about the Entitlements, which will insist on alternate funding for these Groups. Some of the more Stupid among Our leadership cadres believe that the Entitlements programs can be dismantled, not understanding that you can make Americans suffer only so much. Attempts to alter the Standard of Living of Americans will only produce a Change in leadership. Even the Emperors of Rome did not think to cancel the Bread and Circuses. It takes the destruction of the entire Economy, by Conquest or loss of foundation Resources, to stop the demands of the Public. lgl