The Senate has just announced they have come up with a bipartisan deal for a staggeringly gigantic stimulus package that they hope to vote on by Tuesday. Naturally, they released this news about two hours after most respectable journalists have packed up for the weekend and gotten themselves nicely plastered at Applebee’s happy hour.
This whole charade of discussion is disgusting and has brought out the worst of both sides; mainly from the Republicans, who have shown extreme weakness and disorganization in making a stand. After a few whiney calls to fairness, they have tentatively agreed to a slightly-less-than-$800 billion spending bill. They have shown the requisite opposition to it and are trying to wash their hands of the deal, but not too much in case it actually works. House Republican leader John Boehner of Ohio said in a statement right after the announcement on Friday, “ultimately this bill should be judged on whether it works, and 90 percent of a bad idea is still a bad idea.”
So he thinks 90% of it is wasteful spending and pork, but he is willing to try a wait-and-see approach to it? Is this really the kind of leadership we’re going to get out of the opposition in the next four to eight years?
What is most disturbing is that none of the major networks or major pundits have clearly broken down and laid out the components of this bill. Conservative critics scream it’s mostly waste which won’t help anybody, while Liberal cheerleaders degrade the Republicans as Neros who would rather play fiddle than put out the fire. The less-biased reporters ignore the thoughtful approach, instead calling the blows to each side as if they were ringside at a Holyfield fight. Whatever happened to “we report, you decide?”
Of course the Democrats are going to produce a bill chock full of government-expanding programs. Since most of America voted for them that’s what we are going to get. And who is blames them? That’s their platform and they’re sticking to it. But arguing over what money goes where is wasted breath.
There is a more insidious problem here that is overlooked by nearly every media organization (except the Wall Street Journal). Whether the bill is filled with pork or not is a moot point. No matter what form a giant stimulus package takes, be it infrastructure overhaul, massive education spending, or stimulus checks, we are going to severely increase inflation.
When you dump trillions of fabricated dollars in the economy, inflation will rise. There is no escaping it. With the ridiculously poor returns on investments and bank accounts, the last thing we need is our current cash supply to decrease in value. What good is “saving or creating” 2.5 million jobs when their salaries are paid in a worthless currency?
And yes, “borrowing from our grandchildren” is a euphemism for printing money. And we all know how that worked for the Weimar Republic. From Wikipedia:
Since striking workers were paid benefits by the state, much additional currency was printed, fueling a period of hyperinflation. The 1920s German inflation started when Germany had no goods with which to trade. The government printed money to deal with the crisis; this allowed Germany to pay war loans and reparations with worthless marks and helped formerly great industrialists to pay back their own loans. This also led to pay raises for workers and for businessmen who wanted to profit from it. Circulation of money rocketed, and soon the Germans discovered their money was worthless.
Sound familiar?
So the next time you listen to your favorite commentator, see if he mentions inflation. He will not. While everyone is ogling the familiar kabuki play on the floors of the House and the Senate, we are implicitly agreeing that the only way to get ourselves out of this self-made debt hole is to borrow and spend more. Pure lunacy.
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