As I have posted on my blog on September 30, 2008, the Fed will use one of their key financial tools to help jump start the economy. If $700 bln with TARP, $200 bln for Freddie Mac and Fannie Mae, about $150 bln for AIG, and another several billions to help the Commercial Paper Market, what will bringing down the Fed Rates to ZERO do?
It is almost like using a pea shooter against a bank robber. The problem is not putting more money in the financial system, it is letting the FREE Market System work!
Yeah, we can look at Uncle Sam as the EMT (Emergency Medical Technician) trying to use the defibrillator to treat a patient who has gone into cardiac arrest, but what good will it do if the patient doesn't have the proper diet, or apply proper exercise to keep their bodies functioning at optimal potential.
The problem is that Government cannot stop eating PORK or stop feeding the hungry man with fish. What they should do as well as the people of the USA is begin to be humble, frugal, and financially conscience about what and how they spend.
The ideas that should be taught is to teach a man to fish (create jobs) rather than give a man a fish (welfare mentality - both on Wall Street and Main Street). We have got accustomed to a society where adults are kids and kids are kids, not being responsible, not being able to respond to hard choices and sacrifice!
What we need to do is build our manufacturing base so we begin to have "Made in America" once again. Also, we need to pay people wages that are competitive. The problem is when we pay people unreasonable pay for lack of skill, we begin to have a working economy that is welfare based salaries. That is, when you work for less and get paid more.
It is hard to be in an economy where the unskilled get paid more than the educated and skilled workers get paid less. For example, A Real Estate Agent, goes to school for less than six months, and become licensed to make salaries or commissions greater than our skilled working sector. There should be a system where to make that kind of money require as part of its licensing process someone who has at least two year and/or four-year college degree. Some type of tier system. But, when you have less skilled, less educated people work for so much money, the integrity of the system will be compromised...Why? Same as the study have shown for someone who is less educated or unskilled winning the lottery. There is no appreciation of the hard work required to make that much money. Thus, dishonesty, corruption, and greed becomes the root of its foundation.
However you spin it, or however you word it, the failure in the system is lack of self-reliance, dishonesty, coupled with greed and staying up with the Jones.
Nonetheless, lets feed the hungry tiger with ZERO Fed Rates! What NEXT?
Increased crime, corruption, and homicide...the fruits to pride, greed, and eat, drink, and be merry for tomorrow we die mentality! What is the math equation? Zero plus Zero is ??? ZERO! Thanks to Ben Bernanke, Federal Reserve Chairman, our scholar and our gatekeeper to the financial faucet.
When will we learn? Alex de Tocqville wrote about Democracy in America. When the French write came to visit the United States, he spoke that "America is GREAT because America is Good!" It wasn't because we only generous with our money to help other nations, but because we were good because we really believe in the inscription, "In God We Trust"
Anytime a nation abandons or rejects God who gave life and birth to the United States of America, we will be wiped off the face of the land, and another will take over, a more righteous and FREE loving people with less greed, corruption, and more godliness and acknowledge His HANDS in ALL Things!
Meanwhile we will just have to settle for the Fed Rates to go to Zero soon!
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