Wednesday, August 05, 2009
Jake Tapper and Huma Khan of ABC News report via podcast here.
I want to personally thank Neil Barofsky for putting these numbers out in an official report where the sunlight can shine, and policy makers can make informed decisions, but further where the public can begin to see the seriousness of our current position.
Most of the current federal government obligations were set-up BEFORE Obama took office. Most of these measures were taken to deal with what the BUSH Administration created or failed to regulate.
Since Obama took office, he has spent only $400-billion of the TARP, and about $60-billion of the Stimulus, and succeeded in slowing the economic decline. The rest of what has come to pass under the Obama era has been done by the Federal Reserve (a non-government private bank) which is beyond the President's power to control. These numbers were available last year, our economy has no clothes, anyone surprised wasn't paying attention.
I find it difficult to believe that the people taking time to express their shock were so ignorant that they didn't notice the $TRILLIONS in emergency loans that the Federal Reserve (a private non-government entity) was giving away, beginning in September 2008. All that money is created out of thin air, and the American Taxpayer is obligated for those loans, essentially the guarantor of last resort. Yet, the FED can make such loans without government oversight.
That is the real outrage. That the FED can make loans in your name, without permission, and while you fight over an insignificant TARP $700-Billion, they sell the country out from under you, in a desperate attempt to shore up a failing economy.
Many shills for the republicans are propagandizing, misusing this report to build a stance against the new Obama Administration. This is ridiculous, because no person who understands what has happened over the last eight years, would be so stupid as to blame Obama, who is doing his best to sail a sinking ship.
It is worrisome that Treasury wanted to squash this recent report about our POTENTIAL obligations, but Treasury is full of the guys who got us here in the first place, and they seem to be playing a MARKETING strategy, to keep the public ignorant of the man behind the curtain, because they believe that PUBLIC PERCEPTION is reality, and are afraid of a run on the markets if the common investor (i.e. 401k crowd) knew their money was worthless.
I only hope that the Whitehouse is smart enough to let the masses finally realize what has happened, and what the potential damage could be if we don't stop squabbling over who gets rich and begin to work together and create a new economy, with true green, progressive values. Because if the economy, supported by these government guaranteed loans, ultimately fails, it will be because we all failed to produce anything of value.