Can't you see that Washington is trying to allocate money back to the American people in areas that need help like the auto industry.
Yes we can all see that this is a form of patriotism, I will give your money back - a form of government control.
Well let's be a bit realistic here and stop with the BS.
1 - it is not all our money that they are giving back. It is a mix of our money and borrowed money. Most of the money that we are using at this point is borrowed, seeing that we are near the end of the fiscal year.
2 - the money we borrow has a price and this is where people seem to have their head stuck in the sand - the price is interest that we pay on the borrowed money. The interest paid in the next fiscal year will exceed one trillion dollars.
3 - the interest on the money is paid yearly, not at the end of the 'loan'.
4 - most of these loans are in the form of Treasury Securities (Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities), our great treasury leaders don't go to Bank of China and fill out an application and wait for a decision, they auction off the treasury notes, even you can buy one but in the very recent past they had some not sell at the interest rates offered and the treasury had to hike up the interest rate to make them look attractive.
5 - these securities are in different durations. Most that are sold to create money for congress to spend have a 10 year life span, which at the end of that 10 years, we have to again borrow more money to cover the 'cashing in' on the security. A BIG circle of debt where it never gets paid off. By the way because of the interest being paid off yearly, a lot of countries buy long term debt, 30 year securities.
6 - if they want to give back, let them not take in the first place.
7 - the vast amount of people who voted for Obama have no clue what this is all about. Everyone seems to think that the Iraq war has pushed our debt up but that is not all true. Many of these on going social and security related programs are one of the biggest causes. I won't even go into social security other than to say it should be gone but take department of homeland security and their budget, look at the cost of that department and what we have to borrow and we don't even have a border on the south side of the country that is properly protected.
8 - we need to raise interest rates and needed to do so for a long time. Congress way back under greenspan loved low interest rates because they went on a spending spree and could cover their tracks. The fact that we didn't have a surplus due to the tech bubble, 9/11 happened and we went to war didn't phase congress a bit and we are seeing the results in a lack of enforcement in the financial sector.
9 - of course the cure for all of this is to what? spend more money... the Keynesian thought of government finance didn't work in the 30's and it hasn't worked now so why continue down the same path with another FDR wantabe who is ignorant of what makes this country run. I do blame everyone from Johnson on for all of this, not just Obama and Bush.
10 - this economy is very fragile right now and will be for years to come. What the propagandist are saying and what reality is are two completely different things. We will see worst in the near future, we have to see worst but if we see better, than something will happen to make it a lot lot worst. IF the Obamaites get their greasy hands on health care, then we will see taxes raised right away and the economy go right in the toilet. We can not have any health care reform until we have a solid economy and more hard asset jobs (manufacturing, trucking, construction, etc...) that will absorb the costs.
