1) its a loan
2) it will be repaid... eventually
3) this 20b creates a
lot more money in the money supply. there are so many different axes to this situation than meets the eye.
the fed is trying to keep our economy solvent, and avoid the "evil" word that starts with R and rhymes with secession. Imagine if they just left us, said "sorry, SOL" and the banks went bust. Aside from your $100K per insured account, you're fried. All the billions going to Iraq? Those will still flow, the government will just go further into debt, but the consumer will wind up almost broke and with no borrowing power. I have a great 11 letter word that explains this situation. Ask Jon Stewart what it is
On that note, its time for a big-time change. I understand that the Bush/Satan administration will try to spend as much dough as possible in the next 12.5 month for sh*ts and giggles, but, much to my dismay, its not
all their fault. The government needs to start showing some responsibility, and no, they would not subsidize something (gasoline) they have an excise tax on. The excise on the cars we drive and the gas they drink are in place to
discourage us from using them, thats never gonna happen. Healthcare and Education, that could happen if we get a government that cares about the average Joe, not their special interest trips to Vail. My biggest hope is that we don't wind up being foreclosed on as a country by China. The amount of money we owe them is sickening, and the fact that 8 years ago there was a
SURPLUS is even worse!!!
How do you blow THAT MUCH money in such a short time!?
One last thought: Everyone talks about lowering taxes. If you lower taxes, they will have less money to pump into things like education, infrastructure, healthcare, all that. I went to england with a family, and one of the things they commented on was
how cheap the cost of living in the US was. $3/ a gallon for gas is pennies comared to them, everything is cheaper by about 50%, cars, clothes, electronics, everything... the taxes were lower, schools were cheaper (good schools, including public schools require a fee), not to mention real estate. A $600,000 cookie cutter in New England would go for millions over there. Just some food for thought.
sorry about the length...