Thread: Where's It All Come From

Does anybody understand where all the money for this bailout is coming from? We are spending billions in Iraq and Afghanistan, and the other billions we spend every month on every thing else, and we still have billions available to save the bacon of mismansged super corporations. I do not get it.

We don't have any billions available. There is nothing. The government will borrow or have the Federal Reserve monetize yet more debt as usual. We the taxpayers will pay for it big-time.

Originally Posted by Defensor

We don't have any billions available. There is nothing. The government will borrow or have the Federal Reserve monetize yet more debt as usual. We the taxpayers will pay for it big-time.

Do you think it might almost be out of control?

Originally Posted by Tick

Do you think it might almost be out of control?

I think we crossed that bridge a long time ago.

I get the feeling the entire output of Milton Bradely's Monopoly money printing presses are going to be diverted for the next five years.

Watch, and you'll see the price of Monopoly go up in the near future:

Right now it costs $18.99, and it's ALREADY OUT OF STOCK.

The reality is, 800 billion dollars is something like a 6% loan on our 15,000 billion dollar economy.

If we could somehow view this event as a debt consolidation loan as a last ditch effort to keep from losing the house, and took the goddam credit cards away from the 538 drunken wives we have in Washington, and perhaps divorced them, too we could make the loan without a sweat.

But as a nation we're pussy whipped and don't have the balls to divorce our Congressthings, so it's just going to go to pad the bottom line and come out of our pockets as grossly inflated currency.

Originally Posted by Freedom for All

The reality is, 800 billion dollars is something like a 6% loan on our 15,000 billion dollar economy.

If we could somehow view this event as a debt consolidation loan as a last ditch effort to keep from losing the house, and took the goddam credit cards away from the 538 drunken wives we have in Washington, and perhaps divorced them, too we could make the loan without a sweat.

But as a nation we're pussy whipped and don't have the balls to divorce our Congressthings, so it's just going to go to pad the bottom line and come out of our pockets as grossly inflated currency.

Well, that sucks.

Do you think we should bail out and (in essence) reward the mismanagement and gambling with money that is not theirs to gamble with. Would not prudent investing and insuring the soundness of risk not be the proper management stratagy?

Originally Posted by Tick

Well, that sucks.

Do you think we should bail out and (in essence) reward the mismanagement and gambling with money that is not theirs to gamble with. Would not prudent investing and insuring the soundness of risk not be the proper management stratagy?

You're talking like any of us down here in the dirt are going to get a choice.

Originally Posted by Tick

Does anybody understand where all the money for this bailout is coming from? We are spending billions in Iraq and Afghanistan, and the other billions we spend every month on every thing else, and we still have billions available to save the bacon of mismansged super corporations. I do not get it.

Here's the overview: Federal Budget Spending and the National Debt

"Most" of what you're talking about, ends up in the national debt.

9.3 trillion and climbing. Figure, Iraq is about 1 trillion of that. This little bailout, just cost us another 2 trillion. It won't be on the books "right away", but that's essentially the story.

So, now, to put this in perspective, the United States is a debtor nation. That means, ... think of it like a credit card. If you're paying high interest, and your minimum monthly payments are LESS than the interest charges, then your bill is gonna keep growing even if you're makin' all the payments on time! And that's exactly what's happening to the United States.

How that actually works in practice, is, we sell "treasuries", and other people buy 'em. (And notes, and bonds, and a whole buncha other stuff too). Well, the people buyin' those things, are the people who have a lot of CASH (like China), and are lookin' for someplace to put it with a good return - so, they effectively loan it back to the US, at the prevailing treasury rates.

So, the reason the debt keeps growing, is that now we're paying China MORE in debt service, than the money we're taking in from all these sales.

It's not "real" money, like hard cash. All of THAT, is going out the window to things like Iraq. The money we're talking about, is "funny money" - virtual money, just like a credit card.

So, what we're effectively doing now, is borrowing from PRIVATE lenders too! That's exactly what insurance is - private lenders. And now, the government owns the largest insurance company in the world.

So, we take IN money from taxes, and also by raising money from the sale of treasuries, and we pay OUT money for things like defense, and entitlements, and so on. This little bailout, was done like one of those Wall Street mergers, with "creative financing". The government ended up with 80% of assets and somehow they managed to convince (or more likely strong-arm) a few private guys to put up the rest.

So, the only reason I'm saying all this, is, look at the numbers. That 3 trillion out of 9 trillion, that's 30%, right? Well, we just added 30% to the national debt. That's where the bailout money came from.

And, what's likely to happen, is that if they're SMART, the gov will wait for the dust to settle and then get rid of those assets QUICK-like, probably sell 'em off piece-meal or something (probably take a loss, too). BUT, that turnaround will cost the taxpayers PLENTY - it would be, like doing TWO mergers on Wall Street, and the people who do that stuff make PLENTY of money off it.

Originally Posted by Freedom for All

You're talking like any of us down here in the dirt are going to get a choice.

Well we do have a voice, amplified as a vote. If we have that much money available to bail these guys out with, then why do we need a tax increase?