Future federal stimulus bailouts President Barack Obama trademark road to nowhere in this never ending economic slide. Fiscal motivation to put the nation’s finances on a recoverable path, the Federal Reserve implied that another stimulus bailout are on the president’s agenda could be needed to boost a wrangling economy.
Help from the Federal Reserve, but the truth to the matter any additional financial assistance has produced a slower recovery period than expected from the state of the economy as the job market since this January is bleak leading to more concerns that any new bailouts could extend furthering more debt crisis. No tax breaks to big businesses and corporations will prolong failure.
Prior stimulus bailouts have not jumpstarted the economy forcing more speculation that any new financial action from the feds will lead to more anxiety among financial investors in a lacking job market. By the Constitution, congress is prepared to take action if needed first with the feds prepared to act financially.
President Obama, will remain prepared to take action to protect the U.S. financial system and economy in the event that financial stresses plummets the economy further. Currently there is nothing moving this economy into recovery. The government has assumed control more than likely the economy is headed for more doom and gloom before the November 2012 presidential election.
Obama must realize that broad economic growth cannot just cover the labor market. Small business grows when the government and big business sits together and creates prosperity so that corporations can funnel monetary value to banking institutions and small businesses can expand to the middle class, the “Grand Poobah” of consumer spending.
Federal Reserved Chairman Ben Bernanke recently spoke to Congressional members stating that “the body should work to prevent unnecessarily impeding the current economic recovery by avoiding” a catch phrase he termed “fiscal cliff.”, The “fiscal cliff” embrace the “expiration of the Bush tax cuts, middle-class protection from the Alternative Minimum Tax,” and permanent tax breaks for “individuals and businesses that are set to run out.”
Let’s not forget that the Bush tax cuts hindered this economy and the financial institutions since the Democratic controlled congress pushed the tax cuts further during the Bush administration. Obama promised to end the tax cuts but caved in at the end of 2010 which has furthered the deepening economic slide. No new tax codes could lead to a depression.
The Bush tax cuts and the payroll tax cuts extended unemployment benefits without creating jobs. Obama stimulus measures went toward infrastructure projects not economic development a significant threat from recovery. The Federal Reserve could take action if necessary. Is it necessary to add more bailouts and debt to the economy?
In the best interest stop stimulus spending, let the market play out. When the economy plays out, everything will return to normal. Adding more stimuli is like giving a whale a dic tac candy. He will come back for more to satisfy his hunger. Let’s let the election take place, let the markets and economy swallow their own mess.
All stimulus money is created out of thin air that creates more debt. Debt must continue to grow or the monetary supply gets smaller leading to massive defaults in mortgages and financial institutions requiring more bailouts because we live in a debt society.
In this debt based system, Congress take power to regulate more financial reform from Dodd Frank and issue regulation on the flow of cash to reduce the enormous debt accumulated within the last 3 years under the Obama administration. Paying down the debt decreases the money supply from the government.
Stimulus bailout is money we don’t have. More bad news about the economic in a bad market raises another stimulus providing more unemployment, housing decline, rising gas prices and loan defaults. More stimulus bailouts only delay the inevitable. A total financial collapse if the nation continues on the current pace for the next four years. The deficit will rise above $20 trillion. If that is the case, further improvement in the market, financial system and economy must be monitored to curtail the crisis.
The opinion expressed in this commentary
Article is solely those of Michael Coker