Archive for the ‘US debt’ Category

The promise and uncertainty of the $787 billion stimulus package for the US economy

February 15, 2009

The economic stimulus package of the Obama administration has finally passed the scrutiny of the US senate. It only needs the signature of the president on Tuesday, February 17, 2008, to make it into law. Lacking bipartisan support, the Democrats in the senate and congress overwhelmingly voted for the $787 billion package touted to bring back the US economy on track. The Republicans and their conservative supporters disagree.

The astronomical dollar tag on US recovery doesn’t assure that it will succeed. Amidst a crisis of confidence, there are Americans who are alarmed. Critics of the legislation doubt whether the plan will deliver on its promises. Without much basis to back their trust, majority of Americans rest their hope on Pres. Barack Obama to fix the economy. Supporters are optimistic, in fact, overly optimistic.

“The legislation, among the costliest ever considered in Congress, provides billions of dollars to aid victims of the recession through unemployment benefits, food stamps, medical care, job retraining and more. Tens of billions are ticketed for the states to offset cuts they might otherwise have to make in aid to schools and local governments, and there is more than $48 billion for transportation projects such as road and bridge construction, mass transit and high-speed rail.”— Yahoo.News/AP (02/14/09, Espo, D)

There is a growing belief that no one buys its way from a recession. It is scary to pump in such huge money which puts taxpayers’ money on line. More borrowing and spending won’t easily bring back the trust on Wall Street which reneged on its fiduciary duty. There is doubt on those who warn of worse consequences if the public doesn’t rally behind the stimulus plan that nobody fully understands. Many don’t know why the American people are asked to spend for social services of illegal aliens, bail out banks, auto industry, and every ailing business in the country.

Obviously rushed to approve the bill, almost all congressmen (246 vs. 183) and senators (60 vs. 38) didn’t have time to read the legislation which is about a thousand pages long. It is expected the more the public comes to understand the details of the bill, the more people will disapprove. Many are dissatisfied with government officials (the spoiled and extravagant leaders,) from both the Republican and Democratic parties, who negligently brought the people into this economic mess. Those who are hurting wait for the day that the guilty must be held accountable.

There is a cautionary voice out there saying the economic downturn is unlikely to be reversed by this ambitious government rescue plan. Neither will prosperity come by giving away dole-outs to the poor, jacking-up government spending, giving perks to illegal aliens, distributing wealth, and raising the tax burden of workers and entrepreneurs. This seems to be affirmed by Pres. Obama who welcomes the bill’s passage but cautions the whole world that it’s just the start of an economic remedy whose success isn’t assured. There is a big chance that if this money splurge doesn’t work, additional funding will be asked for more massive spending.

Instead of the bloated stimulus spending with a budgeted cost of $787 billion to revitalize the US economy, conservatives have proposed a leaner spending. Unlike the democrats who dominate the Capitol Hill, Republicans assert that the recovery rests on tax cuts, smaller government, less interference with private money, and a return to traditional entrepreneurship and business ethics.

Though it’s early to tell what will be the outcome of the changes promised by Obama, there those who are silently angry and fearful. There are tell-tale signs that one can see with trepidation. Americans are used to live in gilded cocoons on productive fields that they can control. Now they are forced to face uncertainty. The big depression that they haven’t experienced with the rest of the world looms real in the horizon. (Photo Credit: Londa Elle; almostnomad; worsebrain)=0=

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The promise and uncertainty of the $787 billion stimulus package for the US economy

February 15, 2009

The economic stimulus package of the Obama administration has finally passed the scrutiny of the US senate. It only needs the signature of the president on Tuesday, February 17, 2008, to make it into law. Lacking bipartisan support, the Democrats in the senate and congress overwhelmingly voted for the $787 billion package touted to bring back the US economy on track. The Republicans and their conservative supporters disagree.

The astronomical dollar tag on US recovery doesn’t assure that it will succeed. Amidst a crisis of confidence, there are Americans who are alarmed. Critics of the legislation doubt whether the plan will deliver on its promises. Without much basis to back their trust, majority of Americans rest their hope on Pres. Barack Obama to fix the economy. Supporters are optimistic, in fact, overly optimistic.

“The legislation, among the costliest ever considered in Congress, provides billions of dollars to aid victims of the recession through unemployment benefits, food stamps, medical care, job retraining and more. Tens of billions are ticketed for the states to offset cuts they might otherwise have to make in aid to schools and local governments, and there is more than $48 billion for transportation projects such as road and bridge construction, mass transit and high-speed rail.”— Yahoo.News/AP (02/14/09, Espo, D)

There is a growing belief that no one buys its way from a recession. It is scary to pump in such huge money which puts taxpayers’ money on line. More borrowing and spending won’t easily bring back the trust on Wall Street which reneged on its fiduciary duty. There is doubt on those who warn of worse consequences if the public doesn’t rally behind the stimulus plan that nobody fully understands. Many don’t know why the American people are asked to spend for social services of illegal aliens, bail out banks, auto industry, and every ailing business in the country.

Obviously rushed to approve the bill, almost all congressmen (246 vs. 183) and senators (60 vs. 38) didn’t have time to read the legislation which is about a thousand pages long. It is expected the more the public comes to understand the details of the bill, the more people will disapprove. Many are dissatisfied with government officials (the spoiled and extravagant leaders,) from both the Republican and Democratic parties, who negligently brought the people into this economic mess. Those who are hurting wait for the day that the guilty must be held accountable.

There is a cautionary voice out there saying the economic downturn is unlikely to be reversed by this ambitious government rescue plan. Neither will prosperity come by giving away dole-outs to the poor, jacking-up government spending, giving perks to illegal aliens, distributing wealth, and raising the tax burden of workers and entrepreneurs. This seems to be affirmed by Pres. Obama who welcomes the bill’s passage but cautions the whole world that it’s just the start of an economic remedy whose success isn’t assured. There is a big chance that if this money splurge doesn’t work, additional funding will be asked for more massive spending.

Instead of the bloated stimulus spending with a budgeted cost of $787 billion to revitalize the US economy, conservatives have proposed a leaner spending. Unlike the democrats who dominate the Capitol Hill, Republicans assert that the recovery rests on tax cuts, smaller government, less interference with private money, and a return to traditional entrepreneurship and business ethics.

Though it’s early to tell what will be the outcome of the changes promised by Obama, there those who are silently angry and fearful. There are tell-tale signs that one can see with trepidation. Americans are used to live in gilded cocoons on productive fields that they can control. Now they are forced to face uncertainty. The big depression that they haven’t experienced with the rest of the world looms real in the horizon. (Photo Credit: Londa Elle; almostnomad; worsebrain)=0=

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Longer recession blues as more jobs are lost in USA

December 5, 2008

As the first week of December ends, Americans are bracing for bleaker economic news today as the report of joblessness from last November will be released by the Labor Department.

From October’s 6.5%, the unemployment rate is expected to rise to about 6.8% as more pink slips for laid-off workers, estimated to be about 320,000, are issued as the Christmas holiday closes in.

“Just in recent days, household names like AT&T Inc., DuPont, JPMorgan Chase & Co., as well as jet engine maker Pratt & Whitney, a subsidiary of United Technologies Corp., and mining company Freeport-McMoRan Copper & Gold Inc. announced layoffs.”—AP (12/05/08, Aversa, J)

It is said that since the start of the year 1.2 million jobs have been lost. It is feared that this can further aggravate the financial woes being suffered by the three big US auto companies: General Motors Corp (GM,) Chrysler LLC and Ford Motor Co.

Partly due to confusion, anger, and lack of knowledge, ordinary Americans are divided if bail outs of these companies are the solution to the problem. Capitol Hill is still weighing in whether to give the $34 billion asked for by the auto industry managers for their company’s survival.

The guarantee of tax-payers’ money to rescue these failing companies are the last that Americans want, but they seem to have little options. With a national debt of about $10.7 trillion dollars, America still talks big about money and spending. There are those who have been not been roused to the reality that the economy is truly in bad shape.

But, the conscientious public is thinking whether the nation can afford the extravagance, greed, and recklessness its leaders and citizens have been used to. In spite of assurances, the competence and ethical integrity of those running America are now being questioned. The issue of confidence in the American system is causing ripples in business circles worldwide.

As predicted by many business analysts, USA is likely to be stuck for a long haul in a deep recession whose post-war average duration is 10 months, the longest at 16 months. This December marks the 12th month of the current recession whose existence has been muddled for sometime by economic experts until just recently.

At the disclosure of the recession, President-elect Barack Obama announces a 2.5 million job generation plan which may cost the government $500 billion to finance. The staggering amount make the ordinary citizens dizzy as the new administration is headed for a glittery inaugural bash in January 20, 2009.

Confidence on America’s leaders has been under the cloud of doubt since the down-turn of the stock market and the failure of banking and housing industries. Next comes the the auto industry. The fall-out of these economic troubles to the world in spite of optimistic assurances isn’t completely known, but many are hurting and many more are going to be hurt. (Photo Credits: wwww.fortunewatch.com) =0=

RELATED BLOGS: “Mr. Fix & the tall challenge to keep USA & the world to believe that we can quickly come out of the financial mess” Posted by mesiamd at 11/22/2008; “Like Filipinos, Americans Have Money Troubles Too!” Posted by mesiamd at 7/16/2008

Nuns abducted in Kenya, farmers from Camarines Sur march to Malacanang & the US national debt of $10,664,871,159,771.01 bogs the nation

November 27, 2008

The message of Thanksgiving is as beautiful as the reason why we celebrate Christmas. Both holidays are times of reflection and joy for all peoples of the world. Yet today, November 27, 2008, in spite the celebration’s purity of purpose and its significance, dark forces break our peace and try to shatter our hope.

The rejoicing which accompanies the holiday is marred by negativities in the news all over the world. Blocking the way of prayers, reflections, family reunions, turkey dinners, sharing food with the needy, parades, and football games, are spoilers of today’s obervance. Here are some examples:

Mumbai India Massacre

1. Mumbai Terrorist Attack in India with rising numbers of casualties: 104 dead & 314 wounded. Undetermined number of hostages is being held by a militant group believed to be Islamic extremist radicals. An Australian and a Japanese tourist are among the dead.

Kidnapping in Kenya

2. Maria Teresa Olivero, 60, and Caterina Giraudo, 67, two Italian Catholic nuns on a mission to help alleviate hunger and maintain health programs in Kenya were abducted by gunmen on November 17, 2008 and were taken to undisclosed location in lawless Somalia. Their abduction shows the difficulty of helping the poor and underserved in troubled countries like those in Africa.

Thailand’s State of Emergency

3. Thailand has declared a state of emergency around two airports. Scores of protesters against the government have massed on terminals of both airports resulting to all flight cancellations.

UPDATE: As of Sunday November 30, 2008, more than 30 anti-government protesters have been wounded by gunfire and grenade blasts. The closure of the airport strands about 100,000 travellers in Thailand.

Fajardo Estate (Banasi Farm) March from Camarines Sur to Manila

4. Fajardo Estate land dispute escalates when 49 poor farmers from Banasi, Bula, Camarines Sur decided a 21 day march to Malacanang Palace to demand the return of their land which covers 123.349 hectares. Before the CARP, the disputed property is owned by Edilberto Fajardo, Corazon Fajardo, Angustia Imperial and heirs of Baao, Camarines Sur.

“Nagsikad na poon kan Noviembre 17, 2008 an 21 dias na paglakaw kan 45ng paraoma hali sa Banasi, Bula, Camarines Sur pasiring sa Malacañang nganing huroton ki Presidente Gloria Macapagal-Arroyo na ibalik sa sainda an 123.3490ng hectariang daga na parte kan Fajardo Estate na enot pig-award sa sainda susog sa Certificate of Land Ownership (CLO) No. 00495527 base sa Comprehensive Agrarian Reform Law (CARL).”—Bicol Mail, (11/20/08)

Every American Owes $34,947.22/person

5. As of November 27, the outstanding public debt of USA is $10,664,871,159,771.01 (approximately $10.7 trillion dollars). According to the National Debt Clock’s tally, the national debt increases by about $3.89 billion/day since September 28, 2007. Amercan citizens share this debt at $34,947.22/person.

If Barack Obama expands the government spending with his promised programs and he increase taxes as the financial meltdown reels on, the economic strain and debt burden are likely to push the Americans to the limit. At this time the public is watching nervously to see the mettle of the incoming president. (Photo Credits: Reuters/PunitParanjpe; ____, Pakisamagallery/JuanEscandor; JsDart)=0=

RELATED BLOG: “At least 82 killed & hundreds injured in terror attacks in Mumbai, India” Posted by mesiamd at 11/27/2008.

UPDATE: November 28, 2008—The death toll and injured in Mumbai massacre rose to 125 and 327 respectively.