distro pruned to alt.machines.cnc, rec.crafts.metalworking

On Fri, 14 Nov 2008 16:41:39 -0500, strabo
wrote:

We have a Congress which has abdicated it's obligations and
responsibilities.
Indeed, we do.

We have an illegitimate government.
Its the only one we got, and the only one we are likely to get.
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Item two follows from item one.

Congress represents the people, and what the people want is a
"reinflation" of the real estate, stock/bond and credit bubbles,
[people in hell want ice water too] not a systematic evaluation
of the current solution, investigation of how we got here,
determination of the people/institutions accountable, and
long-term solutions to make sure we don't have this occur in
another generation or two.

The original post observed that the palliative measures to
overcome the fiscal crisis taken to date have largely proven
ineffective. This appears to be correct, but the amount
indicated was low by about a factor of 2 [or more]. This also
appears to posit that it was "all W's fault," when in fact this
took at least a generation to fully develop.

In their favor, the Federal Reserve Chairman and the SecTres do
appear to have read some history and are not repeating the
actions that brought the country to its knees in 1929, such as
restricting credit/raising interest rates, import/trade
restrictions, and attempting to "liquidate" the excesses of the
market, such as the housing inventory, at fire sale prices.

Unfortunately, they [and Congress] appear to be unable [or
unwilling] to recognize that this is *NOT* in general a liquidity
or credit problem, but rather a solvency problem, in that huge
sectors of the domestic economy [e.g. automotive] are "flat
broke," as is a large fraction of the population, with the result
that one of the major SYPMTOMS is lack of liquidity/credit.
Indeed, many of our major corporations and unfortunate citizens
are *WORSE* than "flat broke," because they have accumulated debt
of all types far beyond their ability to ever repay. THUS NO
MATTER HOW MUCH MONEY IS INJECTED INTO THE ECONOMY, IT CANNOT
CURE THE PROBLEM, OR EVEN MAKE MUCH OF AN [IF ANY] IMPACT ON THE
SYMPTOM.

This very serious problem is further compounded by the fact than
many of the most accountable organizations are bankrupt in many
more ways than just fiscal, specifically they are bankrupt
ethically, they are bankrupt innovatively, and they are bankrupt
intellectually.

Everyone and everything but their own actions and decisions are
blamed for the fiscal problems, from the new FASB "mark to
market" accounting rules, to the union contracts they were
"forced to sign" back in 1965. Still *THEIR* good times roll on,
with lavish corporate "retreats," private jets, "performance
bonuses," and "golden parachutes," even as their employees and
stockholders take it in the shorts.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).