Friday, March 20, 2009

Chewing our own cud

Giving money and power to government is like giving whiskey and car keys to teenage boys.
P. J. O'Rourke

We, the United States of America, own 80% of AIG. And we can't control them. We can't stop them from burning thru money like a trophy wife on crack. Whaaaaaatttttt?

The Congress calls the bad boys to Washington so Barney Frank can rant and rave. Did anybody do due dligence before we became the majority owner? These bonuses and such aren't new. They were there in the corporate documents if anybody cared to read them. Heck, most bills, especially the budget bills, the trillion dollar stimulus bills, don't get read. So who had time to study AIG.

The U.S. government is so good at profit and loss. In 1990, when the Mustang Ranch, a legal brothel in Nevada, couldn't pay its tax bill, it was seized by the IRS. If you can't make money selling sex and booze you should just stay home. But our geniuses just closed it down. So we got nothing back. And the business just moved a few miles away and started over. We got screwed without a condom or a kiss.

So what do you think the boys at AIG are planning? Might suggest they are renting space across the street to start over. They sure as heck don't want to work for the U.S. government. Maybe they will call the new one BIG. Bastards Insurance Group.

And now, we are going to buy $1 trillion of our own treasury bonds. Because China, who is the largest owner, has just told us they were tapping the brakes on further investment. And since we couldn't find any other suckers, we showed 'em. So we bought them ourselves.

Let's see. So we just spent $1 trillion we don't have to buy bonds that we will have to pay ourselves interest on with money we don't have.

If it's that easy, why don't the banks that don't have any money just lend themselves some more? Oh, they don't have the printing press.

So your money (meaning cash) just got less valuable cause we are printing more to pay the bills we can't pay. Which means inflation is coming.

I can see it now. Obama on the Jimmy Fallon show with a Whip Inflation Now button.

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