Monday, November 10, 2008

JMO - It's only money

Reading the news stories about the bailout which has morphed into financial industry, banking industry, insurance industry and now auto industry infusion of taxpayers' money with few strings attached, it's likely to top $1 Trillion. And all of it is government borrowed money. We borrowed to give to industries, and you'll be paying the interesting the rest of your life and generations beyond.

But listening the range of experts I'm still against it. But I notice they're trying to make it taste better with individual stimulus checks. Wow another few hundred dollars. Gee, we get pennies and they get billions. Why do I believe they gave away the candy store while handing out samplers to the American people? I'll take the whitle chocolate center one thank you since it's irrelevant who's talking and promising anymore.

But then it's just money. What this crisis showed was that the whole industrial world's foundation is debt and credit. There is nothing holding up the global economy but money borrowed in the endless circle of exhanged as everyone's hands are in everyone else's pockets while writing IOU's for the loan. No one really knows where the circular path of debt ends, except the taxpayers who pay the interest on the government's debt.

And now with the national debt at about $11 Trillion, it's hard to think of this bailout as just getting and using a new credit card to the max. and giving the money away. It's hard to see the bailout as real money, but in reality it's about $2,300 per person in the US. Per person mind you, each and every one of us just gave that money away from our government's bank account, except it's not really there.

As once said, "There is no there there." No money except what the government prints in Treasury bonds, prints in money, and signs for loans. It's all a paper, or now electronic, exercise. But as one senator said years ago, when you starting talking about the amount, pretty soon it becomes real money. Well, it's beyond that, it's more than real, it's our future, of a permanent debt we'll never pay off, but just keep adding to the amount.

And in the end, it's not like our finances and budget. That's real money. All of this money is only money on paper. It's not real, just part of the whole global finances. The there is real but similarly not real to us that we know and feel in our life and work. We'll never really see it but we'll pay for it with our taxes.

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