How Do We Stop The Next Round of Bailouts?

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JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
How Do We Stop The Next Round of Bailouts?

It seems extremely likely that as the current stimulus wears-off, and economic and market realities begin to take hold again, that another round of bailouts/stimulus will be forced upon the American taxpayer. Does anyone have any ideas on how we might stop this from occurring? Thanks in advanced....Jeff

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: How Do We Stop The Next Round of Bailouts?

Jeff,

 

I sure hope someone can come up with a new idea because nothing done in the past worked. Demonstrations, tea parties, letters, phone calls all seem to be ignored by the politicians as they give away the farm inspite of what the people say.

I expect that the election in 2010 may have some surprises for the congress weasels if they keep on the same path.

 

Ken

 

mainecooncat's picture
mainecooncat
Status: Gold Member (Offline)
Joined: Sep 7 2008
Posts: 488
Re: How Do We Stop The Next Round of Bailouts?

Quick response.

Political a: Using the system failed miserably the first time. If Congress wants to do something, they will.

Political b: "When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another..." Still a third rail, the unmutterable.

Social: Building the new within the shell of the old. This has begun already but is more or less un-interactive with the political mainstream.

Answer to your question: Don't know.

mainecooncat's picture
mainecooncat
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Posts: 488
Re: How Do We Stop The Next Round of Bailouts?

Your given here is that additional bailouts are a negative for the United States.

But what if bailouts are actually what will strengthen the US in the long run, because they serve to "keep the faith" among those beholden to US’ interests, like all the countries who buy US’ debt?

Each bailout, then, further entrusts others to the dedication of the US to maintain the status quo at all costs. Perhaps a letting-the-system-do-its-thing unwinding is too haphazard of an event for the world’s bankers and decision makers to allow, because a "natural reshaping" of the global economy could well prove to be its death knell. And even though they’ve heard the warnings and read the books from folks like Chris M., etc., they just can’t operate any other way. They’ve said, "We’re running this thing into the ground."

Paradoxically, pehaps even much of the USD’ strength is because of "bailout nation"?

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
FWIW, the bailouts ("stimulus") ain't stoppin', sez Timmy

http://www.cnn.com/2009/WORLD/europe/09/05/G-20.geithner/index.html

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: How Do We Stop The Next Round of Bailouts?

Ok, if we can't stop it, then what is the most prudent method to protect ourselves from the ramifications of another round of stimulus?

John Mauldin, and many others, think gold is one play:

But one last thought, as I have had a lot of questions on gold recently. "Isn't gold telling us that inflation is coming back?" The answer is no. Since the early '80s the correlation between gold and inflation has dropped to zero. Gold has had very little to say in the last 30 years about inflation.

But what it may be saying is that paper currencies are a problem. Gold is going up not only in dollar terms, but in euros, pounds, yen, and more. My view is that gold should be seen as a neutral currency. The dollar is the worst currency in the world, except for all the others. Is it possible the Fed will not respond and print more money next year? Sure. And the dollar could rise as deflation kicks in. The only time we saw the purchasing power of the dollar rise in a sustained manner was during deflation, in the last century.

The race is not always to the swiftest or the fight to the strongest, but that's the way to bet. And right now, my bet is the Fed will print money to fight a double-dip recession and deflation. And gold would be one way to play that bet.

http://2000wave.com/

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