“Rule one: Never allow a crisis to go to waste,” said President Obama’s Chief of Staff Rahm Emanuel in November of 2008. “They are opportunities to do big things.”
Millionaire Warns Americans: “Get Out Of Cash Now”
System - Wall - Street - Journal - Investors
Something strange is going on in the financial system. And according to The Wall Street Journal, it’s causing some investors to move massive amounts of money out of the banking system.
At the time of his remark, Emanuel was eager to exploit the 2008 financial crisis to raid the public treasury. With the passage of the American Recovery and Reinvestment Act in February 2009, Emanuel’s wish was granted. The Obama administration had the opportunity to do big things.
Passage - Recovery - Act - Success - Washington
Politically, the passage of the Recovery Act was a huge success. Washington was able to dole out funds to their preferred projects like never before. What could be better for a Congressman than to direct massive amounts of funds to infrastructure, healthcare, energy, security, law enforcement, and just about everything else?
Some Congressman even directed money to bridges and buildings that were then named after them. No doubt, this flattered their egos. But what it really did was memorialize their political swindle.
Recovery - Act - Dud - Money - Wealth
Economically, the Recovery Act was a great big dud. The money was frittered away without producing any lasting wealth. However, it did produce lasting debt. Since the Recovery Act’s passage, the U.S. national debt has nearly doubled from roughly $10.6 trillion to nearly $20 trillion.
The post-GFC economic recovery was not the weakest of the entire post-WW2 era despite all this money printing and deficit spending, but because of it. Government spending does not “help” the economy, it is a terrible burden on the economy. Every cent the government spends must be extracted from the private sector. Unless bureaucrats have magically found a way to gauge the opportunity costs of...
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