Monday 14 June 2010

US spends its way out of the Second Great Depression

Whilst Britain cuts jobs, free school meals and benefits - the American government is spending like there is no tomorrow.

Yet again the Global economy has destroyed our nation.

Not one banker has gone bankrupt or been unemployed - they are still rich and in work.

Why the hell are we letting the Lib-Con government punish the British people for the sins of the bankers, globalists and the rich ?


Barack Obama requests $50 billion in emergency funding from Congress

Barack Obama has sought to shore up the US economy with a request for $50 billion (£34 billion) in emergency funding from Congress to save the jobs of "hundreds of thousands" of teachers, firemen and policemen.

By Alex Spillius in Washington
Published: 6:09PM BST 13 Jun 2010

He said the aid, which also included measures to help small businesses, was essential to ensure that the country did not "slide backwards just as our recovery is taking hold".

"It is essential that we continue to explore additional measures to spur job creation and build momentum toward recovery, even as we establish a path to long-term fiscal discipline," Mr Obama wrote in a letter sent to party leaders in Congress.

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Pointing out that 84,000 public sector jobs had been lost so far this year, he said keeping people employed in the short term would cost less than their unemployment.

The demand to inject further government spending into the economy puts America on the opposite course to its major trading partners in the developed world. Britain, Germany, Japan, France and Italy have all announced cuts after boosting spending to counter the recession in recent years.

Mr Obama is also likely to encounter stiff domestic opposition. Republicans immediately criticised the president for seeking to spend more money when the national debt has risen to £9.6 trillion.

John Boehner, the Republican leader in the House of Representatives, said spending more public money without offsetting the costs was irresponsible.

"The spending spree in Washington continues unabated, though the American people are screaming at the top of their lungs: 'Stop'."

Even Democrats acknowledged that it would be hard to find support for the request in Congress, where members are worried about re-election in November's midterm elections.

Steny Hoyer, the Democratic leader in the House, admitted there was "spending fatigue" on Capitol Hill and across the country. He said he had asked the White House to look at using funds from the £543 billion stimulus package that had not been spent yet.

The White House has been engaged in an ongoing tussle with the White House over spending. Last month the House of Representatives stripped a £16.5 billion request for state aid from a bill that would extend emergency benefits for jobless workers.

An earlier request for £15.8 billion to prevent up to 300,000 teachers losing their jobs has not passed either chamber.

Since the crisis in Greece unfolded, and other European economies introduced austerity measures, Mr Obama has faced even more pressure to control spending. Mr Obama has urged government agencies to compile a list of low-priority programs for elimination. He also proposed a three-year spending freeze on matters unrelated to entitlement spending or national security.

Robert Gates, the defence secretary, has additionally demanded major savings on weapons systems thought to be extravagant or unnecessary.

But the president and his advisers believe that selected stimulatory moves will remain necessary alongside cuts. "While some people say you have to spend and some people say you have to cut, the president wants to talk about both cuts and investing," said Rahm Emanuel, the White House chief of staff

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Adrian Peirson said...

Western European peoples are far too trusting, our monetaryy system is a complete scam, it's very easy to understand this, it's not exactly quantum chromodynamics but try explaining it to any member of my family and they just don't get it.

Wandrin said...

It's built on sand. The US is in worse shape than we are but they can get away with it because the Chinese hold so many dollar assets and if they dumped them all at once they'd lose billions as the value slumped.

So they're dumping them slowly.

Like us the US economy won't collapse completely. It's like a wedding cake with multiple levels that's out in the sun. The top level has melted already and soon the next level down is going to go.

They won't be borrowing anything after it happens and it'll be like an economic tsunami for us too.

Apart from that yes. International banking is a virus.

A nationalist constitution should stipulate a domestic-only retail banking sector with a Glass-Steagal type financial wall round it and a national investment bank as the gatehouse guarding the only way in. International banks existing outside the wall or not at all.