First it was Jimmy Carter and his $50 cash distribution to every man, woman and child in
Next came Ben Bernanke and his speech about dropping $100 bills out of a helicopter for everyone to gather, and like Jimmy Carter’s plan, give the economy a much needed boost. It remained an academic idea but established the Chairman’s longstanding nickname, Helicopter Ben.
Now, the “hidden government of the United States”, Council of Foreign Relations (CFR), has produced a report declaring that the best possible step for revitalizing the economy is direct payments to the languishing middle class. They made note that low interest rates and Quantitative Easing are having no real effect on the spending habits of most Americans which is critical for growth.
They recognize that the lending habits of the Too Big Too Fail Banks (TBTFs) has been woefully absent, self-serving and not likely to change in the future. Therefore, stealing a page from many of the existing government social programs, the report suggests bypassing the middle man and crediting people’s accounts directly.
Food stamps, child credits and disability payments go directly to the needy and can be expected to be spent in the economy as quickly as received. The sale of beer, fast foods, flat screen TVs and the latest smart phone seem to surge each time a government payment is made. A real economic boost.
The problem, not addressed in the report, as I see it, is that the middle class will, like the banks, not do what’s expected of them. Most will retire debt, buy stocks or simply put it under the mattress for a rainy day. These actions would in no way be beneficial or jump start the economy.
Might I suggest since the CFR (Fabian Society) ultimately controls, that they become more practical in their approach. The ultimate socialistic order will predetermine what the newly distributed money be used for.
As an example if Caterpillar is continuing to show declining worldwide sales then each neighborhood in
Every kitchen in
Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at billtatro.com weekdays at 5pm Eastern. Bill can be reached via email at firstname.lastname@example.org and on Twitter @tatroshow.