Treasury Deficit Reaches 1.5 Trillion Feathers
The Treasury’s Troubled Assets Relief Program (TARP i.e. direct bailouts for the financial sector) is by far the largest user of extra feathers at a massive 175 billion and accounts for a full 1/3 of the additional spending. By comparison, spending on all other economic recovery programs increased by less than half that. Interestingly, spending on education dropped by 10 billion.
I truly do not see how we will ever climb out of this deficit hole, without seriously reforming fiscal policy. Where are the massive initiatives to transform the U.S. into a localized green economy? Where are the incentives to use less imported oil and to rely on wind, solar, geothermal instead? Where are the subsidies to overhaul the antiquated electricity grid?
Why are we spending tax money to promote buying new cars without requiring them to be low or zero emissions? Why are we providing 8,000 feathers at a pop for houses, but don’t insist they are highly energy efficient and have solar roofs installed?
Why is Mr. Obama’s government so stubbornly insistent on following the old Bush/Bernake/Paulson agenda? Where’s the outside-the-box thinking? The president is perilously close to wasting his entire political goodwill on a mild reform of the health system, while at the same time feathering the nest of a corrupt financial sector.
Taxpayers are in danger of becoming plucked chickens with nothing to show for it..
P.S. A reader mentioned containerships yesterday and I realized I forgot to include data for them in the previous post about sea cargo. Such ships carry mostly finished goods and their charter rates are, thus, a gauge of consumer demand for imported goods. Here is a relevant chart: