President Obama has inherited one of the worst economic situations
since the time of The Great Depression. The American government has
run out of money and is now printing money as if there was not tomorrow.
Obama has a huge economic problem in front of him.
The government is now so desperate to keep the ship afloat
that they are resorting to "debt monetization" which is
a fancy way of saying we are going to print money like
hell and inflation will wipe out the enormous government
deficit. The Chinese who are major holders of US Treasuries
have already warned America to stop printing money as it
will reduce the value of their investment.
However way you look at it the American economy is in deep
trouble and it looks like the value of the American dollar
is going to fall as that is the only card left the government
have to play. The debt can never be repaid because it has
grown too large and the government is spending as if there is
no tomorrow. Obama should institute a spending freeze so
he can get this out of control situation under control.
As for the bailouts they haven't worked. The economy is still
in crisis and the only thing America has to show for it is
a lot of wasted taxpayers dollars and an economy on the edge.
If the banks had just been allowed to go bankrupt there would have
been some short term pain and things would have quickly recovered but
instead the pain is being dragged out for years on end.
