What no one seems to discuss is, “Where is all this bailout money coming from?” David Boaz writes at www.cato.org.
“Much of it is just being created on the balance sheets of the Federal Reserve, which portends rising inflation. Certainly, its too much to be paid for in taxes, even in the fondest dreams of Barack Obama and Nancy Pelosi. Is Bernie Madoff advising the Treasury these days?” Mr. Boaz said.
“How much money is it? CNN Money estimates that the federal government has now committed $10.5 trillion. Christopher Barker at the Motley Fool concludes that ‘the combined total of existing, announced, and potential outlays from the Federal Reserve and U.S. government agencies that are directly attributable to the financial crisis will breach $13 trillion!’
“This is nuts. Would [former Treasury Secretary Henry M.] Paulson and [Fed Chairman Ben S.] Bernanke have acted differently last April if theyd known where we would be in a year? … Or if theyd read some history; when governments start handing out money to troubled institutions, there will be no limit to the number of troubled institutions. And in barely a year, you get small auto-parts companies coming to Washington saying that if automakers and large suppliers are getting government help, they should too. President Bush and his Treasury secretary started this process, but Obama and the Democrats own it now. Do they have a plan that doesnt end in inflation and bankruptcy?”
Entries (RSS)