1930's FDR "New Deal" - 2008 Democrats approve the "Death Deal"

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Part 1 of 2


September 28, 2008

SouthAmerica: In the 1930's FDR provided the United States with the "New Deal" - that built the foundations for a middle class system in the US economy.

In 2008 the Democratic Party is providing the United States with the "Death Deal" - this was the last blow needed to destroy the middle class system in the United States.

Under FDR a Democrat the US built the foundations for a middle class in the United States. In 2008 under a Democratic Party controlled Congress the entire social safety net has been dismantled and the last nail in the coffin of the middle class in the United States.

The intelligent Democrats gave the American people the social safety nets and the incompetent Democrats of 2008 gave all the social safety nets away for nothing....

The United States was in trouble before the house of cards collapsed on Wall Street.

Today Americans have 2 choices: 1) Bailout the gamblers in Wall Street to and help them with more chips for them to keep their casino game on to the tune of trillions of US dollars or 2) The government try to keep its declining resources to pay for the enclosed costs and keep some reserves for future emergencies such as extend unemployment benefits for people who run out of unemployment benefits and some other emergencies that might be coming our way in the near future.

When you take in consideration all the liabilities that are coming due and the current economic position of the United States economy – it is a criminal action to approve the Wall Street bailout to the tune of trillions of US dollars.

Only idiots would vote in favor of such a Wall Street bailout.

If the Americans allows this Wall Street bailout to materialize then they deserve to pay the price for being so stupid – when you are brain dead people take advantage of you – and right now the only justification we have for the US government to approve such a massive Wall Street bailout today it is because Americans are completely Brain Dead.


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October 4, 2006

SouthAmerica: Today, October 4, 2006 the cable television channel “CNBC” on its program “Power Lunch” they did broadcast a live speech by Ben S. Bernanke the Federal Reserve Board Chairman at the Economic Club of Washington.

And on his remarks Ben Bernanke has raised the “red flag” that I have been mentioning on this thread – the tidal wave of Baby Boomers that will need Social Security, Medicare, and Medicaid in the coming years.

This “Tsunami” (a very large tidal wave) is not something that is going to happen some day in the future. The “Tsunami” is here and it is time to run for the hills.

His speech was very good and “almost” to the point. Here is why:

The real problem “is not” with the Social Security fund, and Ben Bernanke knows that, and in my opinion the government should leave the Social Security fund alone.

The real problem is with the “Medicare and Medicaid” funding. Here is were we have no way of knowing how much the old folks are going to cost the federal government in the future. Here is where the major problem lies and we need to develop new solutions for the Medicare and Medicaid problem.

Ben Bernanke told us on his remarks about the savings rate, about pensions, about deficits, about everything that he could think of – while he discussed anything and everything including cutting benefits in Social Security, Medicare and Medicaid – but he ignored and did not say a word and nobody wants to talk about it, including Mr. Bernanke, about “the elephant standing in the room.”

I understand why he can’t talk about “the elephant standing in the room” because of political reasons and that would be the last thing the Republican administration would expect from him as Fed Chairman.

The truth is the Fed Chairman can’t talk in public that the United States can’t afford all this “defense expending” and wage wars around the world with an incredible price tag attached to it at a time when there is a major crisis in the horizon that will require a ton of money in the US.

IN A NUTHSHELL: The United States will require a ton of money to be able to take care of this “Tsunami” of people aged 65 and older. And the United States can’t afford to spend all this money to keep the war in Iraq and in Afghanistan going on forever.

The worst part is that the United States is not using even its own money to fight the war on Iraq – the United States is using money borrowed from foreign countries at the tune of $ 3 billion US dollars per day.

I wonder for how long the Chinese, the Japan and other foreigners will continue lending money to the United States for the United States to wage war against other countries?

This is not money that is being invested for the future – this is money that is being wasted away very fast.

For the American people the choice is very clear: Use the money to take care of its ageing population at home or “waste the money” in fighting an illusionary war that at the end – it will turn out just like Vietnam and I already can picture seeing on television the last helicopter leaving a rooftop in Iraq with the last American personal that fought in the Iraq War.

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Part 2 of 2


Here is a timeline from 2006 to 2030 we are talking about 24 years period.


................ Population............ Population
Year …………. Aged 65 + ………...Aged 85 and Older

2006……………….39.0………………………..5.3
2007……………….40.4……………………....5.5
2008 ………………41.8 ………….……….….5.7
2009 ………………43.2 ……………………….5.9
2010 ………………44.6 ……………………….6.1
2011 ………………46.0 ……………………….6.3
2012 ………………47.4 ……………………….6.5
2013 ………………48.8 ……………………….6.7
2014 ………………50.2 ……………………….6.9
2015 ………………51.6 ……………………….7.1
2016 ………………53.0 ……………………….7.3
2017 ………………54.4 ……………………….7.5
2018 ………………55.8 ……………………….7.7
2019 ………………57.2 ……………………….7.9
2020 ………………58.6 ……………………….8.1
2021 ………………60.0 ……………………….8.3
2022 ………………61.4 ……………………….8.5
2023 ………………62.8 ……………………….8.7
2024 ………………64.2 ……………………….8.9
2025 ………………65.6 ……………………….9.1
2026 ………………67.0 ……………………… 9.3
2027 ………………68.4 ……………………….9.5
2028 ………………69.8 …………………….…9.7
2029 ………………71.2 ……………………….9.9
2030 ………………72.6 ………………………10.1


The above table gives you a concrete estimate of the number of people age 65 and plus that we can reasonable expect here in the United States from 2006 to 2030.

I want to bring to your attention that these people are already here – they are your mother, your father, your grandparents, your relatives and friends – these are actual people living today in the United States.

These numbers can be even higher if we have some major breakthroughs in medicine, in healthcare, and also if the United States absorbs a massive amount of older illegal immigrants from other countries in the coming years.

What is happening here in the United States today regarding its population has never happened before. We don’t have a past history to be able to study the past. The United States never had so many old folks around. I want to remind you that the average age when people died in 1900 was around 47 years old.

During the next 8 years of a John McCain or Barack Obama administration the number of people over 65 is going to increase from the current 41.8 million people to 53 million people – an increase of 11.2 million people or an increase of 27 percent.

And the population aged 85 and older is going to increase from the current 5.7 million people to 7.3 million people – what they call the old/old – an increase of 1.6 million people or an increase of 29 percent.

The old/old group is the group that is very expensive for the US government social programs because 2/3’s of the money spent in Medicare is spent in the last 3 weeks before a person dies.


Population of the United States

Year …….Millions of People

1900 …………….76
1910 …………….92
1920……………106
1930……………123
1940……………132
1950……………151
1960……………179
1970……………203
1980……………227
1990……………249
2000……………281
2008……………306


Longivity

People in the United States are living longer and healthier lives than ever before. Average life expectancy at birth rose from 47.3 in 1900 to 76.9 in 2000.

When Ronald Reagan was president in the 1980’s the United States still could afford to play the deficit game and heavy expenditure on defense since the “time bomb” of the Baby Boomer generation still decades in the future.

In 2008 the story is different the Baby Boomers are reaching age 60 and from now on they are going to have a tidal wave of people living in the United States over age 65.

The sudden increase in longevity will create a large pool of people over 85 and older and these older folks are going to cost a fortune to the US government in the coming years in Social Security, Medicare, and so on…..

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Isn't the bird flu supposed to take care of all that?

 

You have to understand he get stipends from the Brazil government to make the US look back

Post Edit: I would have no issue with what SA is doing if he was objective on his own country but he's not . Everything in Brazil is great and the US is going to hell in a handbasket

 

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Dandxq: I would have no issue with what SA is doing if he was objective on his own country but he's not . Everything in Brazil is great and the US is going to hell in a handbasket


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September 28, 2008

SouthAmerica: I had not mentioned Brazil on this posting since it is a Wall Street bailout and a situation that is going to be devastating to the US government annual budget for years to come.

But since you brought Brazil to the picture here is what one of the major Brazilian newspapers is saying about the Wall Street bailout on its Sunday edition.

All I can say is that Lula's proposal is not good for the United States, and you can bet that many countries around the world are also feeling the same way.


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“Lula critica pacote de ajuda dos EUA e diz que "eles" têm que resolver crise”
By: GISELLI SOUZA
Folha Online – September 28, 2008

O presidente Luiz Inácio Lula da Silva afirmou neste sábado que a responsabilidade por resolver a crise econômica mundial é "exclusivamente" dos EUA e fez críticas ao plano de US$ 700 bilhões para ajudar as instituições financeiras americanas.

"Quando eles [os EUA] ganham muito dinheiro, o dinheiro fica só com eles. Agora, quando eles têm um prejuízo, eles querem repartir [o problema] com o povo pobre do resto do mundo. Eu não tenho culpa se eles fizeram da economia deles um jogo de cassino.

Agora, eles têm mais que resolver a crise deles e não deixar que isso chegue ao Brasil", disse ele, durante participação em comício para a campanha do PT à prefeitura de Guarulhos (Grande São Paulo).
Entenda a crise financeira que atinge a economia dos EUA

O presidente condenou também a proposta de ajuda financeira, em discussão no Congresso americano. Segundo Lula, essa ajuda é injusta para com as famílias que ficaram sem suas casas. "Eles querem ajudar os bancos e não querem ajudar os pobres. Muitas pessoas ficaram sem as suas casas com essa crise. Isso tudo foi culpa de um sistema que resolveu especular com o setor imobiliário", afirmou.

Para evitar que a crise atinja o Brasil, Lula afirmou que o país tem reservas em caixa de US$ 200 bilhões. Ele também afirmou que outra saída é investir em exportações para a América Latina, o Oriente Médio e a África, de modo a reduzir a dependência econômica com os EUA.

Source: http://www1.folha.uol.com.br/folha/dinheiro/ult91u449667.shtml

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http://www.nytimes.com/2008/09/28/business/28bailout.html?em

Breakthrough Reached in Negotiations on Bailout

By DAVID M. HERSZENHORN and CARL HULSE
Published: September 27, 2008
WASHINGTON — Congressional leaders and the Bush administration reached a tentative agreement early Sunday on what may become the largest financial bailout in American history, authorizing the Treasury to purchase $700 billion in troubled debt from ailing firms in an extraordinary intervention to prevent widespread economic collapse.

Officials said that Congressional staff members would work through the night to finalize the language of the agreement and draft a bill, and that the bill would be brought to the House floor for a vote on Monday.

The bill includes pay limits for some executives whose firms seek help, aides said. And it requires the government to use its new role as owner of distressed mortgage-backed securities to make more aggressive efforts to prevent home foreclosures.

In some cases, the government would receive an equity stake in companies that seek aid, allowing taxpayers to profit should the rescue plan work and the private firms flourish in the months and years ahead.

The White House also agreed to strict oversight of the program by a Congressional panel and conflict-of-interest rules for firms hired by the Treasury to help run the program.

The administration had initially requested virtually unfettered authority to operate the bailout program. But as they moved toward clinching a deal, both sides appeared to have given up a number of contentious proposals, including a change in the bankruptcy laws sought by some Democrats to give judges the authority to modify the terms of first mortgages.

Congressional leaders and Treasury Secretary Henry M. Paulson Jr. emerged from behind closed doors to announce the tentative agreement at 12:30 a.m. Sunday, after two days of marathon meetings.

“We have made great progress toward a deal, which will work and be effective in the marketplace,” Mr. Paulson said at a news conference in Statuary Hall in the Capitol.

In the final hours of negotiations, Democratic lawmakers, including Representative Rahm Emanuel of Illinois and Senator Kent Conrad of North Dakota, carried pages of the bill by hand, back and forth, from Speaker Nancy Pelosi’s office, where the Democrats were encamped, to Mr. Paulson and other Republicans in the offices of Representative John A. Boehner of Ohio, the House minority leader.

At the same time, a series of phone calls was taking place, including conversations between Ms. Pelosi and President Bush; between Mr. Paulson and the two presidential candidates, Senator John McCain and Senator Barack Obama; and between the candidates and top lawmakers.

“All of this was done in a way to insulate Main Street and everyday Americans from the crisis on Wall Street,” Ms. Pelosi said at the news conference. “We have to commit it to paper so we can formally agree, but I want to congratulate all of the negotiators for the great work they have done.”

In a statement, Tony Fratto, the deputy White House press secretary, said: “We’re pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy.”

A senior administration official who participated in the talks said the deal was effectively done. “I know of no unresolved open issues for principals,” the official said.

In announcing a tentative agreement, lawmakers and the administration achieved their goal of sending a reassuring message ahead of Monday’s opening of the Asian financial markets.

Lawmakers, especially in the House, are also eager to adjourn and return home for the fall campaign season.

Among the last sticking points was an unexpected and bitter fight over how to pay for any losses that taxpayers may experience after distressed debt has been purchased and resold.

Democrats had pushed for a fee on securities transactions, essentially a tax on financial firms, saying it was fitting that they contribute to the cost.

In the end, lawmakers and the administration opted to leave the decision to the next president, who must present a proposal to Congress to pay for any losses.

Officials said they had also agreed to include a proposal by House Republicans that gives the Treasury secretary an additional option of issuing government insurance for troubled financial instruments as a way of reducing the amount of taxpayer money spent up front on the rescue effort.

The Treasury would be required to create the insurance program, officials said, but not necessarily to use it. Mr. Paulson had expressed little interest in that plan, and initial cost projections suggested it would be enormously expensive. But final details were not immediately available.

Saturday’s intense negotiating effort followed a tumultuous week, including a contentious meeting at the White House with President Bush and the two presidential candidates.

That meeting had moments of drama, including a bunt warning by President Bush. “If money isn’t loosened up, this sucker could go down,” he said. It ended with angry recriminations after House Republicans scotched a near-agreement from earlier in the day.

 

[continued]

Mr. Paulson scrambled to revive the talks, and they resumed almost immediately. Congressional and Treasury staff then worked all of Friday and through the night, ending in the predawn.

Mr. Paulson and Congressional leaders stepped in at 3 p.m. Saturday and were in direct negotiations for most of the rest of the night. And immediately after the news conference, staff members began efforts to finalize the language.

Even then, their work is hardly over.

Congressional leaders who want the bailout to pass with solid bipartisan support had already begun to anxiously court votes, mindful of the difficulty they could face in a high-stakes election year.

Public opinion polls show the bailout plan to be deeply unpopular. Conservative Republicans have denounced the plan as an affront to free market capitalism, while some liberal Democrats criticize it as a giveaway to Wall Street.

Representative Roy Blunt of Missouri, the chief negotiator for House Republicans, who have been among the most reluctant to support the plan, expressed some satisfaction but did not commit his members’ support.

“We need to look and see where we are on paper tomorrow,” Mr. Blunt said. “We have been talking about how we can make these things work in a way that our conference can come together.”

Representative Barney Frank of Massachusetts, the lead negotiator for the House Democrats, said that there was no expectation of making anyone smile.

“This was never going to be a bill that was going to make people happy,” he said. “No solution to a problem can be more elegant than the problem itself. We are dealing with a very difficult problem.”

“Given the dimensions of the problem, I believe we have done a good job,” he added. “It includes genuine compromises.”

Aides described a tense meeting on Saturday afternoon that included Senator Max Baucus, Democrat of Montana, shouting at Mr. Paulson about executive pay caps.

Outside, stunned tourists visiting the Capitol watched as camera operators shoved one another to get footage of lawmakers talking outside of the meeting room.

At one point, when too much information was leaking out, staff members’ BlackBerrys were confiscated and collected in a trash bin.

While Congressional Republicans sent only their chief negotiators, Mr. Blunt and Senator Judd Gregg of New Hampshire, at least nine Democrats with competing priorities piled into the meeting, surprising the Republicans but apparently not unsettling them.

The centerpiece of the rescue effort remains the plan for the government to buy up to $700 billion in troubled assets from financial firms as a way to free their balance sheets of bad debts and to help restore a healthy flow of credit through the economy.

The money will disbursed in parts, with an initial $250 billion to get the rescue effort under way, followed by another $100 billion upon a report by Mr. Bush to Congress.

The president could then request the balance of $350 billion at any time. If Congress disapproved, it would have to act within 15 days to deny the Treasury the money.

Early in the day, the two presidential nominees were active from the sidelines. Mr. McCain telephoned Congressional Republicans to sound them out, and Mr. Obama got regular updates by phone from Mr. Paulson and top lawmakers.

Some lawmakers have made clear that they will not vote for the bailout plan under virtually any terms. “I didn’t want to be in the negotiations because I object to the basic principles of this,” said Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, who would normally be his party’s point man.

Pressed about his role, Mr. Shelby replied, “My position is ‘No.’ ”

Officials, including Mr. Bush, stepped up efforts to sell the plan to the American public, which, according to opinion polls, is deeply skeptical.

“The rescue effort we’re negotiating is not aimed at Wall Street; it is aimed at your street,” Mr. Bush said in his weekly radio address. “There is now widespread agreement on the major principles. We must free up the flow of credit to consumers and businesses by reducing the risk posed by troubled assets.”

In a brief speech on the Senate floor, Senator Kent Conrad, Democrat of North Dakota, said: “It’s not just going to be Wall Street. The chairman of the Federal Reserve has told us if the credit lockup continues, three million to four million Americans will lose their jobs in the next six months.”

The ultimate cost of the rescue plan to taxpayers is virtually impossible to know. Because the government would be buying assets of value — potentially worth much more than the government will pay for them — there is even a chance the rescue effort would eventually return a profit.

Some Democrats had sought to direct 20 percent of any such profits to help create affordable housing, but Republicans opposed that and demanded that all profits be returned to the Treasury.

 

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September 29,2008

SouthAmerica: I just posted an item clarifying to people were the $ 700 billion dollar bailout money is going to be invested on by Treasury Secretary Paulson.

The Largest Swindle in Global Economic History
http://www.elitetrader.com/vb/showthread.php?s=&postid=2095418#post2095418

I know that that thread about the bailout has been moved to the Chi Chat forum with the jokes, but at the end of the day, anything related to the US financial markets has become just a joke anyway and this bailout it is nothing more than a bad joke.

Yes, the bailout of Wall Street belongs with the jokes.....


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September 29, 2008

SouthAmerica: I just found out that the House turned down the Wall Street bailout.

I am surprised that there are enough congressmen that still use some common sense.

Good for them - keep up the good work.

Please don't change your mind - don't let the bailout pass the House.

Keep turning down this massive fraud that they are trying to pass as a Wall Street bailout.

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I know people that grew up in Russia. The Marxist story was the capitalist world was in collapse all the time and needed the tender mercies of Communism to rescue them. Hey SA, is Brazil going to rescue us when everything is in collapse? I bet you are for disarming the citizens of the USA so the rescue will be easier right? And nice call regarding how you were sure that Al Gore was going to win the 2008 primary too, kudos on that one baby...