It’s becoming abundantly obvious that even if this stimulus bill passes and is enacted and carried out that it is not really going to help much. At best, the bill will simply postpone the coming mega disaster about 18 months if it even gets to the point of making a difference.

Job losses continue to mount and for those that still have jobs, hours are being cut back, salaries are being reduced and benefits are becoming non-existent. Take a good look at what’s in the stimulus bill:

United States Congress

The American Recovery and Reinvestment Act of 2009
Creating Jobs, Supporting the States and Investing in Our Country’s Future

The United States is facing its deepest economic crisis since the Great Depression, one that calls for swift, bold action. The goals of this legislation are the same as they have been from day one: to strengthen the economy now and invest in our country’s future.

This legislation will create and save jobs; help state and local governments with their budget shortfalls to prevent deep cuts in basic services such as health, education, and law enforcement; cut taxes for working families and invest in the long-term health of our economy. We do all of this with unprecedented accountability, oversight and transparency so the American people know their money is being invested responsibly.

To accomplish these goals, The American Recovery and Reinvestment Act provides $311 billion in appropriations, including the following critical investments:

Investments in Infrastructure and Science – $120 billion
Investments in Health – $14.2 billion
Investments in Education and Training – $105.9 billion
Investments in Energy, including over $30 billion in infrastructure – $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis – $24.3 billion
Law Enforcement, Oversight, Other Programs – $7.8 billion

Do you honestly see anything here that will truly “stimulate” the economy?  Quite honestly, even reducing the tax rates to zero isn’t going to fix the fundamental problem:  people grossly overpaid (via leverage) for assets and have walked away from the debt and the assets.

The ONLY solution I see is to dissolve the Federal Reserve, create a new central bank, and issue new currency.  Perhaps it’s time for that “Amero” everyone has talked about and issue it at a value of $1 Amero = $10 Fed Dollars.    As people get paid in Amero’s, the old Fed Dollar debt will be inflated away rather rapidly.   Houses will then be sold in Amero adjusted currency, banks will lend in Ameros and receive payment in Ameros.

It’s the only way, anything else will be extremely painful for everyone and we’re just about to cross the proverbial “tipping point” with these political schemes that things can quickly deteriorate around the world.