A palpitation of expectation is rising throughout the bodies of the gesticulating 'body snatched' governmental representatives as they perform their superb show of indignation for everything related to the proposed bailout of corrupt 'radioactive' asset laden financial institutions. For they realize that once they get past their act in the committee before the cameras they 'all be well on their way to a supreme payoff that will surge through their lobbyist 'feeding tubes' with such a rush from their business elite masters that the pleasure will be almost indescribable.
Just a little longer the goal is in sight, getting closer to the approval of this stupendous robbery within our totalitarian economic society that is already convoluted with contrivances in the form of laws geared towards efficient extortion, exotic accounting toxic spillover, and expert economic shamans propping up a theory of illusion. After the 'grilling' of U.S. Treasury Secretary Paulson, Fed Chairman Bernanke, and the non-descript incompetent SEC Chairman whom know one notices anyway, they'll have completed their 'show trial' for the benefit of the average American citizen - it will then be time to vote for the bailout of their greedy business masters on Wall Street.
But wait President Bush must weigh in on the 'demerits' of their lopsided supply-side economics approach to an income crisis that has everything to do with average Americans real incomes declining and nothing at all to do with enriching a few elegantly ordained Wall Street masters. Of course Bush doesn't mention the current job losses, and real wage meltdown of the real economy in an income crisis. Unmentioned by any of our puppet lawmakers is the fact that the real economy has been suffering for some time under extreme income inequality resulting from jobs being outsourced, foreign workers being brought in at lower wages, credit becoming the proxy for income that is declining or non-existent, and a government that believes only the supply side of their discredited economic model matters. They believe that by constantly propping up supply (even the supply of credit) that demand will follow suit and sop up all of the excess supply thrown into already over saturated markets. Absolutely improbable, supply does not drive demand only demand for something stimulates producers or service providers into increasing their supply of a commodity or service - the same holds true for credit.
By pumping more and more taxpayer money in the form of a $700 billion dollar bailout into corrupt, incapable, inefficient, wasteful, financial institutions that cling to a neoclassical model of the economy that emphasizes supply side 'trickle down' stupidity we'll only insure a supply of credit to our citizens and businesses that can no longer afford to take on more credit during an income crisis. With job losses this year alone at over 600,000 and increasing, real incomes plummeting, businesses experiencing extreme drops in the demand of their products, and an accelerating deflationary spiral in full force, the last thing Americans need is more credit generated from their hard earned tax dollars. If real wages and jobs continue heading south, 401K contributions will continue to be drained to cover living expenses of average Americans while wealthy Wall Street controllers are eating lobster at parties on the New England coast - subsided by our hard earned tax money. We're also not going to be buying any more cars during this income crisis because the cars that we own (sorry we don't own them our banks do) we're having trouble paying for with our declining real wages. The same holds true for credit cards that we've 'maxed' out to the limit in order to maintain our standard of living within an economy where real wages have been declining due to wage competition that has been enhanced from unbalanced corporate control of globalization.
Our current economic model of laissez faire capitalism is an unsustainable irrational system that requires devolatization through structural reform. Shoveling more taxpayer money in the form of $700 billion dollars onto the same booty piles of loot maintained by the same greedy business elite Wall 'Streeters' will not even begin to solve our economic problems that course across our entire society. An income crisis which is exactly what led up to and continued to strangle our economic life during the Great Depression breeds then as now insufficient demand not insufficient supply. Supply of products just sits on shelves waiting for customers that never arrive while bankers even if they do have money to loan just sit behind their desks tapping their fingers wondering whether they finally did it - completely tapped out the income starved citizens.
So in essence, what our economic society requires is a complete overhaul, which I've outlined, extensively in my prior essays. More immediately, our top priority should be to stimulate the 'lower' economy comprised of lower to middle income earners by substantially increasing our income so that we'll be able to once again purchase products and services - this includes the ability to demanding more loans from financial institutions that we'll be able to make payments on without defaulting. The federal government should use $150 billion dollars to purchase the toxic assets of financial institutions in an attempt to minimally re-capitalize them (outlined in another of my essays), thus matching the surviving financial institution suppliers with adequate capital to an economy currently in the throes of an income crisis. The remainder of the $700 billion dollars should then be used to create jobs in new green industries, infrastructure projects (investment in the nation's capital stock), and in building a modern 21st century electric grid that would be able to connect to the newly created green energy renewable output supplying homes and businesses.
The future is ours to seize if we finally bury the discredited economic models of the neoclassical and supply-side economic priests who'd have us believe on faith that nothing important occurs in the real economic valley populated by workers, senior citizens, and others just scraping by, day after day. We mustn't let up the pressure on the 'body snatched' governmental representatives who are scurrying around Washington devouring lobbyist cheese at an ever-alarming rate. Economic justice will be served if we are vigilant and watchful.