US$800 billion grease for the world economy
The $800 billion economic recovery package to the American people is just some oil to grease the US economy not just in homeland America but the world economy where at present US securities lodged mainly in European banks are seen to be worthless.
The true problem can be seen in its full depth by the amount of securities lodged world wide. Many where lodged within what was seen as a viable trustworthy banking system, London being one of the world’s hubs of banking? Thinking of the 3 trillion known problems with USA and China and at guest the lodge securities in Europe are about 1.5 to 2 trillion one can easily assume that US on terms of its overseas securities is well into the red.
Adding up the money chucked by not just USA but other nations that have been effected by the problem that started in the USA can only act as oil to spur confidence of the investors. Yesterday a member of the British parliament an ex advisor to Gordon Brown and now the Minister for children, stated that clearly that tax payers money being used as a bail out can not achieve aim on its own with out money from private sources (meaning investors).
That $800 billion of American tax payers money once placed into the economic system is just oil on the wheels to install confidence in borrowing lending and investment. I have been thinking how many people have been trying to ridicule Gordon Brown the British Prime Minster of whom is not really strong enough to do well at being good Prime Minister however he does has a very good record of running an economy as a Chancellor.
Perhaps it’s true that Gordon Brown idea’s will save USA losing financial world power. And as said by his opposition sarcastically saving theWorld. I think the plan had to be as unilateral as possible to halt a world recession made worst by hype and effectively retain a status quo to a level just below that of the original economical status of the world market place.
Ironically there is an old saying about the Labour Party that when there is a problem Labour just throw money at it. Perhaps this Gordon Brown idea should not be laughed at and note USA is gambling it’s the right way to go.
However I am annoyed that tax payers money is being used to solve a problem of fraudulent mistakes of many of those greedy cretins that thought it okay to take bonuses from all most bankrupt system. Its criminal that any tax payer should fund and bail out any speculators and investors bad gambling debts. But looking and thinking about the problem there really was no other option the global economy needs to be stabilized.
I hope Gordon Brown plan works however if it a success he and his political party would never have my vote in the next coming Election.