Saturday, October 10, 2009

Tax Rebates Or Fiscal Discipline

It is encouraging to know that Washington returns to us our money as tax breaks through the "stimulus package". But is it really helping? Or is it just as if a band-aid on a gunshot wound?

Assists in the Bush administration, Congress and the central bank's efforts to avert a recession and the economy, we are missing a critical point. Regardless of whether the "stimulus package" does or does not work this time, we would not have been betteroff if we could keep our own money in the first place and not pay the Fed in the form of taxes to enable them to maintain a good piece and return to us a few crumbs as a tax deduction? Instead of being forced (taxes, regulations, inflation, etc.) to give our money to the federal government, we would have had that money in my pocket already save expenses, or investments in whatever way we are with the greatest benefit.

The fundamental question is not clear what the federal government can do to helpSolving the current credit respectively. Debt crisis, but what in the past that the crisis created in the first place. It is not so much the big banks and big oil for our current financial mess and housing, high oil prices be held responsible, as the federal government. These were things like the federal government's own 9 trillion U.S. dollars (plus debt, oppression, the Federal Funds interest rate to 1 percent from June 2003 to June 2004), ongoing wars in Iraq and Afghanistan have already cost morethen $600 billion (and are expected to eventually cost trillions!), and pumping (i.e. creating out of thin air) hundred of billions of newly printed dollars into our economic system in just the past eight years! All of this adds up to a considerable extra burden on us as Americans through high taxes, high government regulations and controls, and high inflation and prices.

Sooner or later, no amount of interference the federal government performs will stave off an impeding financial Collapse, if we return to budgetary discipline and sound financial principles.