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Feb 17, 2009
Everybody wants a “Stimulus” but nobody has defined what a “Stimulus” is or
where the term came from.
Pour yourselves another hot cup of Rocket Java and listen up, girl friends.
President George Bush put forth a $1.2 Trillion “Stimulus” Package called
The TARP (Troubled Asset Relief Program). Congress voted “YES.” Nine
months later, new President Barack Obama put forth another $1.2 Trillion
"Stimulus" Package called The ARRA (America’s Recovery and Reinvestment
Act). Congress voted "YES."
hell is the definition of a "Stimulus" and where did the term come from?
British pseudo economist Lord John Maynard Keynes gave his Big Time
Socialist Easter Egg Hunt Speech, essentially stating,
"All the Government has to do is bury lots of
non-backed paper money, send everybody out on a monetary Easter Egg Hunt,
and when the masses discover all the booty and spend it, they will have
created a stimulus 'Multiplier Effect' of -- hey, let's pull this
out of a hat like White Rabbit in Alice in Wonderland --
1.75 Pound Notes for every 1 Pound Note buried in
American economists quickly extrapolated this idiotic Easter Egg Hunt
analogy from the Pound Note to the Dollar and, hesto presto, we got an
entire school of Village Economic Idiots in American universities
proclaiming that for every $1 the U.S. government shoves into the economy,
we hit the jackpot and receive $1.75 (or whatever positive multiplier number
they currently agree upon). Keynes in his idiotic Easter Egg Monetary
Scenario, assumed that all other parameters in basic free market economics
101 wouldn’t exist. Note also that Keynes’ Stimulus Multiplier must be a
positive number greater than 1.00, else – following Keynesian logic -- one
would be creating a Negative Multiplier Effect, which would, oh-oh, tend to
destroy an economy instead of
enriching it. More about that later.
the Keynesian Village Economic Idiots multiply Barack Obama's $800 Billion
(make that $1.2 Trillion with interest) Economic "Stimulus" Package times
The Assumed Magic Multiplier Number, divide some portion of that by the
average annual union worker wage rate, and Wowie Zowie come up with how much
"Stimulus" injection of non-backed Pulp Fiction Dollars it takes to
presumably create 4 million jobs! Yahoo! Solid economics, right?
Unfortunately... ah hem, cough, cough, what if The Multiplier Effect Premise
is, duh... WRONG? What if other subjective free market parameters exist --
along with previous governmental interventions into the market -- and what
if these parameters play a more pivotal role in the market to dampen the
so-called Multiplier Effect -- even reducing it to less than 1.00 -- than
the Keynesian Village Economic Idiots realize?
turns out, there is NO such animal as The Stimulus Multiplier Effect.
Stimulus Multiplier Effect was, and is, a Fig Newton of Keynes' socialist
hundreds of economists today, using the numbers and models of the Keynesian
Village Economic Idiots have come up with
different – yes, girl friends,
different -- Multiplier Effect Numbers which are more like 0.48,
or 0.37, or 0.75, or less.
means that these economists’ results show that for every $1 that the Feds
inject as ha-ha a so-called "Stimulus," we get back only 48-cents or less.
So, even using the Village Economic Idiots' Quantitative models, Obama's
$1.2 Trillion Economic "Stimulus" Package would DESTROY jobs and INCREASE
unemployment, not create more jobs. Never mind all the rest of the
individual rights and constitutional issues surrounding the ridiculous idea
of a Multiplier Stimulus Effect in the first place.
based upon false economic premises of the Keynesian Village Idiots,
President Obama and Congress are pouring trillions and trillions of
non-backed Pulp Fiction Dollars into the U.S. market in the hopes that it
will “Stimulate” a Multiplier Effect greater than 1.00, create 4 million
jobs, and, hooo boy, enrich the economy. That’s funny (not really), but
history has shown over and over again that this type of ridiculous
hyper-inflation of a nation’s Funny Money destroys an economy, increases
unemployment, and usually ends up in trade protectionist wars as all nations
retaliate with their own Pulp Fiction Paper Money.
again, it looks like the politicians got it bassackwards, as usual. In
fact, isn’t this type of government monetary manipulation exactly the same
policy that got us into the subprime mortgage and toxic derivative financial
mess that we’re now in?
And since the Federal Reserve, the Treasury, and Congress already destroyed
the value of the U.S. Dollar with Keynesian pseudo-economics, including
their insane concept of a presumed government “Stimulus” Multiplier Effect
to enrich the economy, it is not surprising that graduates of this
philosophy from our major universities gravitated to Wall Street where they
extrapolated these same deficit concepts to what we now call “toxic
derivatives,” which – like the Dollar – also have no value and thus
precipitated our current financial crisis.
that's why FDR's Treasury Sec Henry Morgenthau said in 1939, after six years
of failed jobs and other government programs started in 1933, "We have
failed! Our unemployment in 1939 is the same as it was (20%-25%) when we
started our jobs programs in 1933, except that now we have an
extraordinarily huge debt!"
– FM Duck
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