Sarah Palin has been called 'Caribou Barbie', among other things. But what, exactly, is expected of a Barbie? We would expect Barbies to spend money on lots of different things. We would expect them not to carry cash, because they would call it smelly and dirty. We would expect them to resist the urge to buy big-ticket items. We would expect them to spend lavishly on services, including anything involving hard work.
We need the Barbies in Congress to step up.
Here's why: Since January, about $900 billion dollars has been collected from investors around the world, using Treasury auctions, in order to fund deficit spending. This is the source of the money for the stimulus package that a majority of Americans were in favor of last year. So, as of right now, there are $900 billion fewer dollars in circulation due to the activities of the Treasury. Additionally, about $1.1 trillion remains to be raised via Treasury auctions this year.
Reports indicate that about 6% of the money for the stimulus has been spent. That's roughly $90 billion. The Fed openly reported that it has created about $190 billion so far in inflationary activities. That's a little better. Still, that's a difference of about $620 billion. To put that in perspective, that's more than twice what the federal government collects in income taxes each year.
Ok, it doesn't take a rocket scientist to figure out that Congress is sitting on this gigantic hoard of cash. We all understand the good intentions of everyone in Congress to keep their fellow citizens afloat in these difficult times. However, they are in fact slowing the velocity of money anthropogenically at a time when it is already slowed due to this huge friction called 'taxes'. The tax payments due every April 15 serve to slow down the economy tremendously. At a time when the people need cash the most, it's being soaked up by huge government bureaucracies and stored. That's the worst thing that could happen.
Barbies, where are you when we need you?