Wimpy economics explained

Since the bailout is humming along so swimmingly, markets stabilized, manufacturing up, housing stars up foreclosures down, automobile sales through the roof, and all of it accomplished by the government simply throwing a couple of trillion dollars it doesn’t have around, Nan Pelosi believes it’s time to move the economy into over-drive by borrowing another 500 billion dollars to fund another stimulus package. Really, what have we gotten from the first two trillion in bailout money? An economy in recession, markets with daily triple digit mood swings, one market sector after the next standing in line for a handout and what - nothing but trouble, that’s what

This is idiocy of the highest level. There is not one thing being produced or service being performed to provide taxable revenue upon which these expenditures can be PAID FOR. Nothing.

It will be paid for by the U.S. government borrowing more money – mostly from the Chinese. When lenders wake up and realize that the dollar is next to worthless, the same thing that happened to the housing market will happen to the dollar and the U.S. government. They’ll be worthless. OK the government is already worthless, but the dollar is next. Because when lenders stop lending the only thing left is to run the printing press 24/7/365 to churn out more and more fiat dollars. Then we’ll all need SUVs or pickups to get the money we’ll need to buy a loaf of bread to the grocery.

This is what Lex will term J. Wellington Wimpy economics. Wimpy, as the oldsters will recall, is the rotund fella from the Popeye cartoons who wonders in and out of scenes and says, “I’d gladly pay you Tuesday, for a hamburger today.” So Wimpy is getting his hamburger today. When Tuesday comes and Wimpy can’t pay, he’ll throw out another couple of his famous lines, “I’d like to have you over for a duck dinner. You bring the ducks.”

But it’ll be Mr. & Mrs. Taxpayer who will end up getting their gooses cooked here. And if you don’t believe me – you should but – here’s another view of the situation from Fred. Enjoy the finely honed sarcasm.