Here a Trillion, There a Trillion

by Sal on February 10, 2009

in Economy,Politics

One Trillion Dollars

$9.7 trillion.  That is currently how much spending has been committed by the Federal government to fix this crisis in the last year.  Of that:

  • $800 Billion is from the now-certain stimulus
  • $700 Billion for the TARP Program
  • $170 Billion from the Bush stimulus last year
  • $5.4 Trillion spent or committed in bailout buyouts by the Federal Reserve, Federal Deposit Insurance Corporation, and Treasury Department

Now, after all of that, Secretary of Tax Cheats Tim Geithner unveiled TARP-II today, which could top $2 Trillion (upon his announcement, the Dow lost 300 points).  This would raise the amount spent by the Federal Government in this last year alone to $11.7 trillion, bigger than the entire national debt prior to the onset of this crisis (remember how much $1 trillion is).  Since Geither himself acknowledges that he has no idea what he is doing yet with the money, I’ll leave that to another post.

It seems to me, however, that we keep spending trillions of dollars at the drop of a hat, with no end in sight (Obama is already promising a completely separate foreclosure aid package).  At some point, all of this spending is going to come back to bite us in a big way.  The inflationary component of this should not be underestimated.  How much more money will be spent by the government before this is all over, and what will it take for us to recover from this mess?

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