o Federal Stimulus Package

The stimulus package proposed by the government is estimated to be $700 billion dollars.

Written out long hand, its $700,000,000,000. That's a big number. The addition of billions of dollars in the system will result in inflation. There are too many dollars chasing the same amount of goods and services.

Spending money on buying garbage assets from banks and propping up inferior car manufacturing, with no reforms attached, is pointless. The system is not being fixed, its simply being life-lined. Once the defibrillators are detached, you are still left with a heart attack victim. Or is the economy simply dead?

The banking industry has artificially grown out of proportion to the purpose it serves. Banks are supposed to take in depositor money and lend to credit worthy counterparties. Profits are made on the difference between the interest paid on deposits and the interest collected for lending money. That's it. A bank violates its charter by speculating in obscure and opaque markets. A robust banking system is necessary for the proper functioning of a market economy. Its too bad banks do not take their roles responsibly.

Cars that run on gasoline are obsolete by definition. Only a finite amount of oil exists. Let the weaker banks fail in order to keep the surviving banks stronger. Switch the auto fleets to electric cars. The only problem is the government taxes gasoline and so will not force the industry to change. An investment in new industries, like electric or ethanol cars, would ensure American serfs have work and are capable of footing the ginormous bail out bill.

o Ponzi Schemes

A Ponzi or pyramid scheme is a fraudulent operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. Below are a list of Ponzi schemes:

• Bernie Madoff
• Social Security
• Medicare
• National Debt
• Trade Deficit
• Fractional Reserve Banking System
  

Bernie Madoff is a drop in the bucket compared to the Ponzi scheme run by the US government and the current banking system. As soon as the interest rates begin to rise, the full consequences of the debt problem will have real impact on the borrow and spend economy.