Monday, May 10, 2010

Planet Bailout

Today's Drudge Report "mini-headlines" looked approximately like this:

Without linking to the articles, it is clear we are leaving Bailout Nation and entering Planet Bailout. The U.S. involvement in this global stupidity is growing, quickly erasing any schadenfreude I might have been nursing after watching Greek communists in action. In the what could go wrong category, consider this AP headline:

WASHINGTON – The Federal Reserve late Sunday opened a program to ship U.S. dollars to Europe in a move to head off a broader financial crisis on the continent.

Other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Japan also are involved in the dollar swap effort.
Hey, that's our money. Who gave the Fed the authority to do that?

Meanwhile, the marginal tax rate for the middle class hovers around 40%. Interesting reading here and here on the perverse effects of our marginal tax rates. And the Democrats are set to increase taxes on dividends and capital gains. It's hard enough for the average person to save money as it is, because the average middle income earner loses 40 cents on every new dollar they make. Over the last century, investing in stocks was the best way to increase wealth, but Obama and the Democrats want to make that harder as well.

With ballooning deficits and an apparent commitment to bail out the entire world, no wonder the Tea in Tea Party stands for Taxed Enough Already. Reversing the mushrooming size of government and the idea that handing out dollops of cash will willy-nilly will solve any problem is the signature issue of the Tea Party. We must keep up this fight, because the latest actions of an unaccountable Federal Reserve show how much danger we are in.

Just keep in mind that this is the ultimate destination for your hard earned dollars when the fed ships it to Europe:

Might as well light our dollars on fire here, and save the expense of sending them to Greece.

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