Re: The Republican Legacy:

Posted by Dioclese on December 23, 2008, 6:40 am

> The Republican Legacy:
> The Worst Economic Crisis in Three Generations
> Heckuva job Bush and his Republican friends have given us the credit
> crisis, the housing bust, the energy crisis, two budget-busting wars
> with the threat of a third and record oil company profits. Time and
> time again, the Republicans, including John McCain who doesn't know
> how many houses he has and who loves to buy stacks of $100 chips for
> gambling, have also offered giveaways to the rich who are already rich
> and don't need giveaways. Did I mention that we're in an economic
> crisis?Did I also mention that every sane person in Congress is
> holding their nose because they are probably going to have to vote yes
> on a bailout plan that is certainly better than Bush's plan but far
> from ideal because Bush and Republicans refused to deal with the
> problem when it would have been far smarter to do so a year or two
> ago? Yeah, it's a mouthful to swallow. And nobody likes it. Did
> everyone think that the Chinese were going to pour their billions into
> our housing market forever while huge areas of our economy lagged
> behind in the 20th century? Were we going to buy oil from the Arabs
> forever while shipping our jobs overseas? Were we going to borrow from
> the future forever
> Millwright Ron
> www.unionmillwright.com

The way they're printing out money, we, our children, and our grandchildren
will be paying back that debt for all our entire lifetimes. Even if they
stopped printing right now. Remember the effect of printing money also
affects the valuation of the U.S. dollar vs. Chinese currency.
Consequently, the amount of U.S. dollars to pay a foreign debt increases as
well.

Chinese investors not only jumped on the A.R.M. bandwagon for investment,
they also are the source of our U.S. funding that Congress loves to give
away. U.S. consumers are the biggest percentage of consumption of Chinese
goods. Go to Wal-Mart and look. Its rather obvious why the Chinese would
have vested interest in this country. And, the U.S. in China as well.

For the borrowing to change to nil, the U.S. has to create balanced budget
with leftovers to pay off Chinese loans. Until the trade deficit (created
by U.S. consumers) changes, our money will continue as a heavy stream to
China. This outflow of money is lost jobs and business. This negatively
affects the inflow of monies to the U.S. Treasury, state and local
governments, and local economies. Which, in turn, prevents Congress from
easily creating a significant positive change in the budget balance.

There is nothing wrong with the concept of world trade. There is something
wrong when one country is shipping its monies by the cargo ship's full to
another country. I don't blame any political party for this. Its been a
growing thing for many decades. It does have to be fixed for anything of
any positive significance to happen.

The foreign oil consumption problem is similar in nature regarding trade.
Consumers are just as much at fault regarding this issue.

G.W. Bush almost made it out of the White House without having to address
issues he purposely "overlooked". These issues are only the symptoms
though. Some Republicans backed G.W. through all of this. Not many though.
I'd rather not get into the political party blame game on that as it sways
conversation and thought from the actual problem.
--
Dave