Stimulus Package Explained (Q&A)
Circulating via email:
Sometime this year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:
Q. What is an Economic Stimulus Payment?
A. It is money that the federal government will send to taxpayers.
Q. Where will the government get this money?
A. From taxpayers.
Q. So the government is giving me back my own money?
A. No, they are borrowing it from China. Your children are expected to repay the Chinese.
Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn’t that stimulating the economy of China ?
A. Shut up.
Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:
If you spend that money at Wal-Mart, all the money will go to China.
If you spend it on gasoline it will go to Hugo Chavez, the Arabs and Al Queda
If you purchase a computer it will go to Taiwan.
If you purchase fruit and vegetables it will go to Mexico, Honduras, and Guatemala (unless you buy organic).
If you buy a car it will go to Japan and Korea.
If you purchase prescription drugs it will go to India
If you purchase heroin it will go to the Taliban in Afghanistan
If you give it to a charitable cause, it will go to Nigeria.
And none of it will help the American economy. We need to keep that money here in America. You can keep the money in America by spending it at yard sales, going to a baseball game, or spend it on prostitutes, beer (domestic only), or tattoos, since those are the only businesses still in the US.
February 13th, 2009 at 4:05 pm
I’m going to DisneyWorld.
February 13th, 2009 at 4:07 pm
“Q. Where will the government get this money?
A. From taxpayers.
Q. So the government is giving me back my own money?
A. No, they are borrowing it from China”.
A lot of it is money that will be transferred from people making more than $100K/yr to people who make less than that.
I don’t feel very stimulated.
February 13th, 2009 at 4:14 pm
Steve Barry,
We got trapped in Disneyworld in 1980 and can’t seem to find our way out. Have you ever been in an amuzement park when the food concession stands and rides are shut down? Look around.
Great stuff from Alexander Cockburn on that “minor detail” which is STILL draining our finances like gangbusters:
America is broke but here’s Obama , seemingly set on boosting a US force in Afghanistan where, according to the Center for Budgetary Analysis, it costs $775,000 per year to send a single soldier. And, as I noted at the outset, this week Obama punched his core supporters twice in the stomach by committing his administration to the same unconstitutional canons of secrecy and claims of executive immunity to the rule of law that made Bush one of the most hated presidents in history. His staff can’t seem to nail down safe appointments. In sum, in these crucial early weeks, Obama seems to have trouble setting his compass, as the ship towards the rocks. But hey, at least we have a Democrat in the White House, saving us from endless war, constitutional abuses and bank bailouts, right?
THere’s more about how the Wallstreet Journal AND the NYT sat on iron clad proof of Madoff fraud since 2005 at Counterpunch.
February 13th, 2009 at 4:19 pm
Take a prostitute to a ballgame and drink lots of beers…sounds like the 1986 Mets.
February 13th, 2009 at 4:21 pm
Nice dead pan post!
Buy a freakin’ iPhone!
February 13th, 2009 at 4:23 pm
@blackbox: that’s only semi-stimulating the american economy as apple doesn’t actually manufacture the iphone of the phone’s parts. That’d be the work of Asia.
February 13th, 2009 at 4:45 pm
I hate yard sales, baseball’s mildly entertaining but ticket prices are a rip-off, I don’t like or have any tatoos and American beer blows.
Guess that leaves hookers but a lot of them are imports sending some of their earnings back home.
Then again, I do enjoy some of our wines from the West coast. So I’ve got that going for me. Which is nice.
February 13th, 2009 at 4:48 pm
I will take your advice and do my part to drink lots and lots of craftbrew to stimulate America.
February 13th, 2009 at 4:51 pm
in the end, it ALWAYS comes back to hookers & blow
February 13th, 2009 at 4:51 pm
“the Arabs”?
Barry, could you clarify what you mean by this? Which “Arabs”? My neighbor? My old friends in Michigan? The kid in my son’s kindergarten class?
I mean, we’re talking an ethnic group here, so it’s pretty much like saying don’t buy X because the money will go to “the blacks” or “the hispanics”.
I guess these days its easy to use “Arab” as a slur and no one seems to notice.
Oji
February 13th, 2009 at 4:53 pm
spend it on…beer (domestic only)
But I like Stella. When I’m feeling snotty. Budweiser when I’ve got my redneck on. But wait, aren’t they owned by the same company? This is so confusing.
How ’bout Nascar? Is that still allowed? And football? Still no fereigners much playing in that sport. I sense a redneck revival in the wind. But what will I drink?
February 13th, 2009 at 4:59 pm
“beer (domestic only”
…does that include Bud?
great post, thanks for a laugh.
February 13th, 2009 at 4:59 pm
Here’s a novel idea: don’t buy anything with the money. Save it in a place of your choosing. On second thought, probably should go ahead and convert it to Chinese currency….
February 13th, 2009 at 5:03 pm
“since those are the only businesses still in the US. ”
Gotta love it when a Plan comes together..
February 13th, 2009 at 5:37 pm
@ Oji
I did not know Arabs was a disparaging term- what if Barry said Asians or Africans or Canadians or Russians or Armenians or Indians or Scandinavians or . . . etc . . . etc . . . etc
February 13th, 2009 at 6:06 pm
more Q&A on the overall rescue thingy:
Q. What kind of jobs will be created?
A. Jobs like road building and screwing in new energy efficient lightbulbs in Federal buildings.
Q. Who is going to take these new jobs?
A. Former investment bankers and mortgage brokers mostly
Q. Do they know how to build roads?
A. No, but that is not the point.
Q. What is the point of all this?
A. Getting your vote
Q. I thought I already gave you my vote.
A. You did, but we will need it again in 2-4 years.
Q. To get my vote, I need you to pay my mortgage for me, ok?
A. OK
February 13th, 2009 at 6:11 pm
Since I’m hankering for buying a big screen, I suppose I’m in favor of the stimulus.
February 13th, 2009 at 6:12 pm
Q. So the government is giving me back my own money?
A. No, they are borrowing it from China. Your children are expected to repay the Chinese.
——————–
All of the stimulus funds are borrowed funds. Moreover, a portion of any money that goes to people, either in the form above or through salaries, will end up abroad. And for that matter, a portion of any funds that go to purchase equipment or build infrastructure will also take a hike.
February 13th, 2009 at 6:18 pm
Companies are getting innovative to get your stimulus money…Hyundai will sell you a car and if you lose your job, you just give it back and it won’t hurt your credit. Also, Panansonic is forcing their employees to spend $2200 each on Panasonic products.
February 13th, 2009 at 6:20 pm
I feel like an idiot…I have been posting that according to Financial Sense, Nasdaq as reported P/E was 79…I should have waited…it is now 109.
http://www.financialsense.com/monitor.html
February 13th, 2009 at 6:32 pm
I haven’t had a real “Day Job” since 2005. Where’s my bailout and stimulus?
February 13th, 2009 at 6:32 pm
Steve Barry: I suppose you’ll have to buy more QID now
February 13th, 2009 at 6:46 pm
A lot of it is money that will be transferred from people making more than $100K/yr to people who make less than that.
And to some who make a whole lot more than that too
Then again, I do enjoy some of our wines from the West coast. So I’ve got that going for me. Which is nice.
Unfortunately, they import the sunshine to make the grapes
February 13th, 2009 at 6:51 pm
“Q. So the government is giving me back my own money?
A. No, they are borrowing it from China. Your children are expected to repay the Chinese”
Who are we kidding? Our kids are expected to default on those loans
February 13th, 2009 at 6:53 pm
Is it really necessary to include racist remarks in an otherwise funny economics post, Barry? Disappointing.
Also, Canada is our top source and Mexico is on par with S. Arabia but they are not as scary souding of course.
February 13th, 2009 at 6:56 pm
On an off topic:
I just had my first surgery (with stitches) EVER. It was for a minor thing but I’m thinking that if this is the beginning of what the second half of my life is going to be like I think I’d rather be hit by a bus now. That’s a whole lot quicker. I think I now know why people take up extreme sports and join the military. There is a good chance they will die quickly and not live out the long end of the game in pain in some hospital bed.
Boy, getting older sure gives you some wild insights. Those boomers better get this pain, cutting and burning thing worked out before I get old I’ll tell ya (and I don’t really have any today but I now know it’s coming. I can read a trend) . That better be one benefit of getting their hand me downs
Apologies if I stepped on any sensitive nerves in this bleat
February 13th, 2009 at 6:57 pm
Also, Canada is our top source and Mexico is on par with S. Arabia but they are not as scary souding of course.
Canada has some pretty tough geese though
February 13th, 2009 at 7:18 pm
As a healthcare worker, I can just tell you that even healthcare is detriorating. I’ve got patients that can’t afford to come in. Yet its like impossible to tell them to go sell their TV or get rid of their cable to save money to afford to learn how to walk, talk, use their arm, etc. Part of the stimulus that Barry speaks of with the money going to China is that we as Americans have truly lost a sense of what our lives are worth and overrate what our products (courtesy of China) are worth. Rather than give out a stimulus package, we ought to give out a book of life lessons to taxpayers from people who survived the Great Depression. Stimulate our minds rather than stimulate something so fleeting as consumer discretionary goods.
Not that this has anything to do with the above topic, but does anyone else get Dr. Marc Faber and Dr. Mark Mobius mixed up, or am I the only one? They both are on CNBC pretty often and are bearish on the US/bullish on international.
February 13th, 2009 at 7:31 pm
Well you could buy a Boeing …
February 13th, 2009 at 7:52 pm
Awesome.
February 13th, 2009 at 8:16 pm
Hey Steve,
Did you see the Japanese GDP estimates?
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/13/AR2009021300651.html
Japan economy seen shrinking at 10 pct pace in 4Q
I saw the opinions that the Chinese were going to be the first out of the recession/deflation…what do you think?
February 13th, 2009 at 8:17 pm
I laughed so hard I cried…then I just cried. Where do you recommend I go to become an expat?
February 13th, 2009 at 8:19 pm
@Common Man:
What kind of surgery did you have?
February 13th, 2009 at 8:39 pm
Buy a home – get a greencard – thats the answer! For two centuries this country welcomed immigrants to do the hard work of building the country – the roads, canals, dams, railroads etc that the expanding country needed. Now we have different needs. For a couple of decades we gave preferential immigrant status to the foreign nurses, baseball players and investment bankers . Now we have a pressing need for consumers in general and homebuyers in particular to fill the vast wasteland of McMansions and Detroit row houses that lie vacant. The world is filled with shitholes that people are dying to escape from and there must be a couple million out of the billions who live in these places who are willing and able to buy homes here.
February 13th, 2009 at 8:48 pm
Re Bruce in TN. If Japanese GDP was down nearly 12% and exports twice that then what would honest and accurate numbers from China be? We will NEVER know but if we think of China as being a high beta country with 12% growth before then we should watch for the riots soon.
February 13th, 2009 at 9:10 pm
I think it’s time to dust off the Pizza Recovery Act. Give all Americans vouchers for 10 large pizzas at the restaurant or delivery of their choice ( no frozen grocery store pizzas ). The wheat is from KS, the cheese is from WI, the tomatoes are from IN and CA. Obviously, the help is local. And later, when obesity causes pre-mature deaths, the taxpayers will save on healthcare and Social Security. Maybe we could include a few cokes too, but eaters should pay their own tips.
February 13th, 2009 at 9:38 pm
Barry, I love BP. You’re guiding us all through this mess with depth, detail and dexterity.
I love this list too. Love it! BUT, just in case the “Nigeria charitable cause thing” is indicative of a lack of knowing the fact that 2000 – 07 Nigerian SE market cap increased 1478% with a value traded increase of 3431% and that Nigeria was the fastest generator of sovereign wealth over the last 5 years at 291% I thought I’d pass that on.
February 13th, 2009 at 9:52 pm
Here are a few more ways to keep the money here:
If you own a small business, pay your ripoff, do-nothing, landlord or franchisor even though your sales have dropped 20% in the last few years. And if you can’t do that, pay a ripoff attorney to help you out.
Go see your doctor if you are lucky enuf to have (ripoff) health insurance.
Eat in a local restaurant. Although, the illegal help will probably send some of the money back to their country. (No disparagement, we’d have to pay $10 for fast food without them!)
Pay the 23% interest your credit card company is charging you. Or pay the bank for the mortgage on the house that’s dropped 25% in value since you bought it two years ago.
Ain’t life wonderful
February 13th, 2009 at 10:30 pm
Bruce in Tn: Two blogs that have as good info on China that you are likely to get:
http://mpettis.com/
http://chinesepolitics.blogspot.com/
February 13th, 2009 at 10:39 pm
I know this is meant to be tongue in cheek, but 90% of America’s food supply comes from the US. When you consider that most of us real people (don’t worry Barry…I like you, but…nobody you know is in this category) are happy just to keep a roof over our heads and some beans + rice in our bellies, I think it’s safe to say that this money will stay in the US.
February 13th, 2009 at 10:46 pm
Pizza makers are mostly foreigners. Likely to send money back home too.
Buy savings bond.
Or not neccessary buy something to help the economy, but we can use the money to pay off a h_tman, I mean a professional person, to suicide, I mean to persuade, I mean induce into a state of suicidalness, that octopulate mother in CA. That will help to stop her from giving more births and also other copy cat freeloader.
February 13th, 2009 at 10:48 pm
Arabs are freekin’ Arabs -they’re not Persians, Irishmen, or the goddamned Guatemalans. They are not Syrian-Arabs. Iraqi-Arabs, or Lebanese-Arabs. They are people who have self-identified as ethnic Arabs at one point or another in their history, who still live in the middle east, and whose ancestors come from the Arabian peninsula. We could call them “semitic peoples’, but this has wrongly come to be associated with the Jews. If you are a citizen of the US, you are an ‘American’. Enough with the hyphenated ‘country of origin + American’ bullshit. In 2 more generations, we’ll all be octaroons of one ilk or another, anyway.
Both sides of my family have been in America for generations, although they come from all over the world (mostly Europe, but the middle east and Asia (by way of ‘native’ American people), also. My son’s mom comes from Ireland.
My son is an American mutt – just like me.
Freekin’ oversensitive elitist, racist bastards.
Note: had a few drinks tonight – is this the ‘Irish’ in me manifesting itself? Not really – I’m just a dickhead when I get a little lit.
February 13th, 2009 at 11:32 pm
Bruce in Tn @ 8:16.
Looks like the Japanese government is going to have to ratchet up the bailouts some more.
But the government debt-to-GDP ratio is already at least 1.8.
(I wonder how far they can push it).
February 14th, 2009 at 12:36 am
I’m sort of warming up to this Cash for Clunker Plan, in all seriousness.
Government gives out cash if you turn in your old car for a new one. The rebates currently range between 2500-4500 bucks. I think they should radically increase the amount of the rebate on a trade in…basically turn it into the Detroit bailout package with the added benefit of clearing out inventory.
Trade in a car older than 10 years for a new car = $6,000 credit on the new car
8-9 years = $7K
6-7 year = $8K
Program only applies to vehicles getting less than 18mpg….
Dedicate $20bn to the program…
You get gas guzzlers and polluting cars off the road and you wipe out some inventory. I know that actually building new cars pollutes more than just letting the old cars keep rolling, but right now we’ve got A LOT of inventory anyway….
Program only lasts for 2-3 years.
I’m writing my Congressman on this concept.
A Bailout for Detroit that actually has some benefits…..
February 14th, 2009 at 12:47 am
Just finished watching that House of Cards reported by David Faber. It was a little light on details and substance, but man it was nauseating.
I’m nauseated for two reasons:
1) Being from “ground zero,” I had extended family getting those types of loans back in ‘04 and I was really dumbfounded at the time. The ever rising housing market in 05 and 06 caused me to tilt toward a really bearish outlook on the stock market/economy. I was a year “early”(wrong) and did not figure out a way to get “really rich” on it like that hedge fund guy on the program. Therefore, it nauseates me.
2) I CANNOT BELIEVE THERE IS NOT A SIMPLE RULE ON THE BOOKS THAT REQUIRES “DOCUMENTATION” FOR LOAN ORIGINATION. C’mon. People did not have to produce any documentation? WTF. I know that I should have accepted all of “this” by now, but it really is amazing, and somewhat nauseating.
And the Greenspan riff about how he couldn’t interfere because it would have crippled the economy is just such bullshit I’m not sure where to begin….
February 14th, 2009 at 1:10 am
@Bruce: I’m sure China, with their planned economy, will be the first out…but again, at what long term cost?
Deflation in action: I am starting to hear of friends and relatives taking up to 10% paycuts and they don’t work on wall street. Anybody else hearing this?
February 14th, 2009 at 1:25 am
Don’t forget cheeseburgers, all of our agricultural production can be represented in corn syrup and cheeseburgers. I would argue that Cheeseburgersand corn syrup are the only thing we make in this country anymore. The rest are service industries to provide cheeseburgers and coca cola and to service the cheeseburger producers.
February 14th, 2009 at 1:37 am
SB: That’s the deflationary spiral at work. When the cost of almost everything is dropping you don’t need to be paid as much. Definitely a self-perpetuating cycle at times. I can’t tell you how many times I’ve heard: “I’m just going to hold off on that purchase because I know it’s coming down….”
The herd is definitely running one way right now and will continue to do so until everyone has reached the point of maximum negativity….
At that point…prices will stop falling….and someone will start “buying things” again…and then the rest of the herd will start to murmer…”Is it time to start buying things again?”…Then we can start to form a bottom….we’re still a ways off.
I’m wondering if the G7 mtg this weekend will produce some “surprises.” The SP500 looks like it wants to crater. Somewhat conversely, the Yen looks like it wants to fall apart as well. I wonder if we’re setting up for some event that blows up the “black boxes.” There are clearly algorithms out there that Buy/Sell Yen v. Buy/Sell SP500 in perfect negative correlation. Lots of money tied up in gold which is looking VERY tired at this point.
I’ve had some clients into short sp500/short yen….and it’s starting to work pretty well….we’ll see.
February 14th, 2009 at 2:23 am
AT,
Short, is the Safe side..
Sad, though, Behavioral Economics is a flowering branch of that study, though Prechter gets little mention in that context..
February 14th, 2009 at 2:34 am
@Andy- I am curious what you see in the SPX and YEN that tells you both look like they want to go down. Can you elaborate?
February 14th, 2009 at 2:53 am
@Andy…you mean the dreaded “non-linear event”? That will happen when hedge fund investors try to get their money back.
February 14th, 2009 at 4:21 am
beasy,
You forgot Vermont maple syrup.
February 14th, 2009 at 4:52 am
@Bruce in Tn Says: February 13th, 2009 at 8:19 pm
Hi Bruce,
It was a cyst on my back. Apparently superficial. Something like a zit after a congressional spending program gets a hold of it. I thought I was going to have pain after the freezing wore off but nothing came of it so that is cool. It was very minor but I am reading trends here and looking with new found respect for bent over old people knowing the pain they must be in and how many needles and scalpels have been stuck into some of them in their life times.
During the surgery as I was feeling some discomfort I was thinking about seeing documentaries on civil war medicine and wondered how they did it without pain deadeners back then. It was at that point I became very thankful we live in such a time
February 14th, 2009 at 5:31 am
Check out all the unsold cars here folks. Quite the jaw dropper:
http://www.silverbearcafe.com/private/01.09/unsoldcars.html
February 14th, 2009 at 6:11 am
franklin411: Re: Beans and Rice — You from Louisiana? Or you talking about congri?
Re: China
According to Michael Pettis’ blog, China is basically the US of the Great Depressio: huge trade surplus and manufacturing overcapacity, with large numbers of factory workers being thrown out of work. There is a minimal safety net. The other blog I cited is musing on what the newly unemployed are like and will they take it quietly.
Pettis last post said that exports had declined something like 17%y/y, but that the trade surplus had increased, indicating imports were falling even faster. Smoot/Hawley here we come.
February 14th, 2009 at 6:14 am
I don’t comment hear much, usually just read your comments. I received an email yesterday from one of the factories I work for, they are rolling back pricing to that of 2004. That’s about a 25% haircut on prices. Regarding cars, I have no problem with the rebates, it’s just that most american cars get lousy mileage. I have a Jeep Liberty (2006) bought used, I never buy new. This car gets 28 miles per gallon on the highway. It has a little Italian diesel in it. I pull a trailer to trade shows an it still gets 21 miles per gallon. My former Jeep that I let go with 325,000 on was only getting 16 highway and 10 with the trailer. Why don’t we have more of these diesels or diesel hybrids like europe? I might even buy a new one…….PS I was glad to see my Senator Gregg pull out of Commerce Secretary, he’s a smart guy and probably didn’t want to sink with this ship.
February 14th, 2009 at 6:14 am
How the Common Man See It: Did they give you a bullet to bite on? Saw one in a museum somewhere. Had deep teethmarks in it.
February 14th, 2009 at 7:13 am
@Mike in Nola Says: February 14th, 2009 at 6:14 am
How the Common Man See It: Did they give you a bullet to bite on? Saw one in a museum somewhere. Had deep teethmarks in it.
Mmmmm! Nothing like a nice dose of lead poisoning to help deflect your attention from the pain (:
February 14th, 2009 at 7:15 am
I spoke to a friend in Maryland last month, he said that when he went to his dealer for service in December they had only sold two cars all month. They usually sell five or six per day.
February 14th, 2009 at 8:48 am
I expanded on your Q&A. I hope you don’t mind.
Q. What is an Economic Stimulus Payment?
A. It is money that the federal government will send to taxpayers.
Q. What is the purpose of an Economic Stimulus Payment?
A. Over the last 20+ years, we Americans spent more money than we made. Now we’re broke and we can’t spend any spend any more money because nobody will loan it to us because a lot of us are poor credit risks. With an Economic Stimulus Payment, taxpayers will be able to spend more money.
Q. Where will the government get this money?
A. From taxpayers. Eventually.
Q. So, the government is giving me back my own money?
A. Not exactly. Taxpayers are broke. The government is borrowing it from China.
Q. So we’ll have to pay the Chinese back later for the money we’re giving ourselves now?
A. With interest.
Q. Don’t we already owe the Chinese a lot of money?
A. Yes. A couple of trillion.
Q. Why would the Chinese want to loan us this money, if we’re broke?
A. Because they know we’ll be spending it on consumer goods that they make.
Q. How did Americans become broke?
A. By buying too many consumer items from China.
Q. Is it really wise to be borrowing even more money from the Chinese, to buy even more consumer items from China, if we’re already broke?
A. We have no choice. We’re broke.
Q. How are we going to repay the Chinese if we’re broke?
A. That’s not a big concern right now, because the Treasury bills and bonds the Chinese will buy to finance this won’t be due for 10, 20, and 30 years.
Q. So, we are asking our children and grandchildren to take on trillions in debt so that we can buy a lot of stuff from China that we can’t afford?
A. “Asking” is not exactly the right word.
Q. How can we be sure that our children and grandchildren will be able to repay the Chinese?
A. That’s their problem.
February 14th, 2009 at 9:15 am
http://www.foxnews.com/politics/elections/2009/02/13/congress-approves-protectionist-measure-spark-trade-war/
Morning…I see the protectionist bill, er stimulus bill, is passed…I noticed the Pettis blog on China has a good deal to say about protectionism, and I don’t think our trading partners will like what they find in the new measure…just my opinion. It will be interesting to see if the world takes up protectionism as this mess gets worse and worse…if they do, all in this blog have little trouble seeing where that will lead, unlike congress.
I think expecting Congress or the President to do just the right thing, that isn’t going to happen, with this administration or any other…again, I place my trust in my own judgment, and frankly, expect elected leaders of all stripes to make mistakes…
I see we sent a robot plane into Pakistan overnight, killed 27…Pakistan says many were civilians, we say they were terrorists…our new stimulus bill is just like the last guys, only bigger…nobody liked Cheney, but now many picked for the new administration don’t pay their full share of taxes, and etc,and etc…
Folks here should trust what they feel is best for them…our new administration will do the best they can, but I don’t expect things to be a whole lot different from the last bunch…
This mess is going to get much worse…if WalMart disappoints Tuesday, I expect the market will consider that a negative, and if this protectionism thingy gets established it will be much worse in the end..
jmo…
February 14th, 2009 at 12:04 pm
Don’t forget cannabis and bourbon, with the added benefit of numbing you to what’s going on.
February 14th, 2009 at 12:38 pm
Nothing like a good old fear mongering viral email list…
February 14th, 2009 at 4:27 pm
I loved this piece. It says it all. This is why I follow this blog, though I often throw things at my monitor when I read it.
I hope it’s OK that I reproduced this piece on my blog, with proper credit, of course. http://www.dailycapitalist.com
February 14th, 2009 at 4:40 pm
The best way to Stimulate the US economy is to use your check as collateral for a X10 loan. Then use the proceeds from the loan as collateral for another loan at another bankrupt bank. Do this 1000 times at 1000 banks and you will have single handedly rescued the economy as well as being the richest idiot in the USA.
February 14th, 2009 at 5:27 pm
Another factor ill considered by wet behind the ears Keynesian social progressives in their understanding of economic stimulus, is that as soon as an imported good is bought, and most of the borrowed foreign money heads back overseas, that’s the end of the money multiplier effect in America. And it is the multiplier that provides most of a stimulus, over 90% of it.
Unfortunately, when a country doesn’t produce much within its borders, an economic stimulus is bound to fail…..and is nothing more than an impotent, deluded, anachronistic concept held to by economic naives with all the understanding you’d expect of a community organizer.
February 15th, 2009 at 7:50 am
If all our spent dollars are headed straight overseas anyhow, what difference does it make whether or not we’re in a recession/depression?
February 15th, 2009 at 9:59 am
Um, if you are going to drink American beer, then you may want to carefully choose your choices. Budweiser is made in the USA, but has a foreign owner, same with Miller. I believe Sam Adams, Anchor Steam, Schlitz(restarting production and marketed in Milwaukee and Madison,WI ONLY!), Point, or any local beer is safer. Or just brew your own, though the kits are probably made in China as well.
I’m willing to give my stimulus check right back to China ( I make less than $50G/yr). That’s the way I operate, if I borrow money from a friend or bank. I pay them back as quickly as I can! Oh, I have to suffer with things like homemade dinner, reading a book, or taking walks. No brand new car, eating at a grand resturant, or buying the lastest greatest techno device.
Sorry, I can not run for president, I’ve been kicked out of the US Navy, oh wait, so did Walt Disney!
February 15th, 2009 at 10:48 am
Barry,
The value add of goods made abroad is mostly locally made by Americans. China sells us a pair of pants, for $5 bucks, landed, for which we give them an IOU. Then we pay Americans huge salaries to market those pants, pay landlords huge rent for the shops, pay advertising executives huge salaries for ads, etc, etc. And then, the American consumer pays, $60 for the pants. So, $55 bucks go to Americans, the Chinese get an IOU for $5. And, to make the deal better for Americans, the Chinese can never cash in the IOU, if they do, their currency will rise, damaging their exports, creating unemployment.
Sounds like a good deal to me. So, everyone, get a new pair of pants, a toaster, or whatever you want!
February 15th, 2009 at 5:51 pm
I hate when people say that when I buy gas, it goes to Al Qaeda. Do you have any proof of this?
Al Qaeda’s assets are frozen, and if a Saudi gives money to them, they face arrest and prison. The same in the other countries. Saudi is trying to be legitimate, plus they are actively fighting terrorism within their own country.
February 16th, 2009 at 11:36 am
The sad thing is that after a downturn is obvious to everybody, they will save money not spend it. That is why taxcuts (to consumers and businesses) are useless as economic stimulus, at this point in the cycle. It simply turns into borrowing money from the future and putting it into the bank – to be used to pay of that loan sometime in the future. Unless we can get inflation jumpstarted, that will have absolutely no effect on the economy; and if we fall into a deflationary depression those taxcuts will be a disaster. At this point in time the only way to stimulate the economy is government spending on educational and infrastructure projects that will get American hands back to work and improve our competitiveness later when the economy start to recover worldwide.
February 17th, 2009 at 1:06 pm
The latest news can be found at http://2009stimuluscheck.info/
February 17th, 2009 at 2:22 pm
Here is the reason for the stimilus
Q. What is an Economic Stimulus Payment?
A.To placate the Chinese by borrowing more money from them, so that they don’t foreclose on the White House.