CHESSNOID

There is a movie out called I.O.USA that explains in a non partisan way why we have such a big federal deficit. It explores the origin and history of the US deficit.  Considering where our economy is today, we can learn a lot from history and a better understanding of it might help us find the solution to a speedier recovery.

This is a link to a 30 minute version of the IOUSA movie on youtube.

If you have read any of my old posts of why I am against bailouts, this movie will make you understand my reasons better. I definitely criticized Bush, Bernanke, and Paulson and rightfully so because they were the decision makers in navigating our economy into this severe recession.  Did it have to be this way?  I don’t think so and after you watch this clip which puts everything in perspective, I think you will agree.

I know Obama and his new administration want to get a big stimulus package based on building infrastructure, but I have my doubts that all the money will go into real production.  At the same time, he may be talking about $500 to  $700 billion, but after all is said and done, I think this will be just a few more trillion piled on top of the other trillions we have wasted.

Think about the bailouts that have been forced on the American taxpayers which total about $2 trillion in the last year alone.  We have not seen that money trickle back into the economy, there is still a credit crunch, and the companies bailed out our still under water.  It is obvious that the monies could have been better spent and utilized.  Both Senators Obama and Biden voted and passed these previous bailouts with supposed “transparency and accountabilty” but the auditors say otherwise.

NEW YORK (CNNMoney.com) —

The first official review of the federal government’s $700 billion financial rescue plan said Treasury has yet to address “critical” oversight issues to ensure the plan is working.

“Without effective oversight, Treasury cannot ensure that those receiving funds are complying with [the capital purchase program's] requirements,” the report said.

The report called for a consistent process for monitoring participating institutions, so that Treasury can identify and address any potential compliance issues with banks receiving funds from the Troubled Asset Relief Program, or TARP.

Treasury doled out the government money with the intention that banks use it to lend, but some have instead used bailout funds to finance purchases of other institutions. The program is meant to ensure the bailout funds do not go to finance paychecks of top executives, and banks are required to pay out a dividend.

But the report said Treasury currently lacks sufficient oversight methods to ensure banks comply.