I’ve Been Stimulated. Have You?

Posted By ê¿ê on May 9th, 2008

Woke up this morning and logged into my bank’s website to see that our stimulus package payout had been deposited as we slept. Since we already had plans for ours, it’s basically spent already and not on new gadgets or cars or grocery store gift cards (as one website was advocating since the store in question had a deal where they gave you your incentive check plus 10%). No ours is going into one of our savings accounts and on bills.

I’m of the opinion that a significant number of people will be doing the same thing with theirs as well which means that as an overall stimulus to the economy, it’s going to be a bust.

So what would tip us into a deep recession? Something like increasing the workforce by 30,000 people i.e. bringing troops home from Iraq and Afghanistan. The Democrats need to keep that fact in the forefront of their minds when they get around to doing this as I’m sure they will in the next 12-18 months. While it’s wonderful they want to end those wars, doing so precipitously would not only plunge the two countries we’re waging these wars in into chaos, but our own as well and that’s something we need to avoid.

Showing too much weakness on our part is going to give China and Russia ideas of taking over the US; something they’ve wanted to do for years and something that China is already precipitously close to achieving on a monetary basis.

According to MSN Money, as of December of 2006 we owed China some 261 BILLION dollars (I haven’t been able to find any newer supported figures although speculation is now that we owe more like 1.5 TRILLION). With Russia’s show of military force in their parade through Red Square yesterday and today’s news story about China’s secret, underwater submarine base, I think we have reason to worry about these two foreign superpowers attempting to take over our country.

Although some predictions say that gas will drop by the end of the year to more reasonable levels price-wise, I have difficulty believing that. I don’t see China and India reducing their ever burgeoning consumption and that alone is going to keep the price of oil and gas at a pretty high level.

Two things that MIGHT serve to lower gas prices would be

the discovery of a new, easily mined oil reserve somewhere not in a volatile foreign country OR
the discovery/development of alternative energy fueled motor for automobiles.

Barring one of those developments, $4 per gallon gasoline is going to be the norm for Americans, not a bad dream.

What do you feel America’s choices are with regards to the economy and specifically to pricing and recession? Are you feeling the pinch anywhere besides the grocery store and gas pump? Are you spending or saving your rebate?

ê¿ê