7-7-7: Jobless? Face It. Obama's Not That Into You
Forget Herman Cain's 9-9-9. The battle cry for every American ought to be 7-7-7.
7-7-7: for the $7.7 trillion the Bush and Obama Administrations secretly funneled to the banksters.
Remember the $700 billion bailout that prompted rage from right to left? Which inspired millions to join the Tea Party and the Occupy movements? Turns out that that was a mere drop in the bucket, less than a tenth of what the Federal Reserve Bank doled out to the big banks.
Bloomberg Markets Magazine reports a shocking story that emerged from tens of thousands of documents released under the Freedom of Information Act: by March 2009, the Fed shelled out $7.77 trillion "to rescuing the financial system, more than half the value of everything produced in the U.S. that year."
The U.S. national debt is currently a record $14 trillion.
We knew that the Fed and the White House were pawns of Wall Street. What's new is the scale of the conspiracy.
Even the most jaded financial reporters were stunned at the extent of collusion: "The Fed didn't tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn't mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed's below-market rates."
Citigroup earned an extra $1.8 billion by reinvesting the Fed's below-market loans. Bank of America made $1.5 billion.
Bear in mind, that's only through March 2009.
"Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure," wrote Representative Elijah Cummings, a ranking member of the House Committee on Oversight and Government Reform who is demanding an investigation.
Indeed we are.
This stinks. It's terrible economics. And it's unbelievably cruel.
First the economics. The bank bailouts were supposed to loosen credit in order to encourage lending, investment, job creation and ultimately consumer spending. It didn't work. Banks and corporations alike are hoarding cash. President Obama, who promised 4 million net new jobs by earlier this year, has been reduced to claiming that unemployment would have been even higher without the bailouts.
Ask any business executive why nobody is hiring and they'll blame the lack of consumer demand. If the ultimate goal is to put more money into people's pockets, why not just, you know, put more money into people's pockets?
Bank executives used federal taxdollars to pay themselves tens of billions in bonuses and renovate their corporate headquarters. We the people got 0-0-0. What if we'd gotten 7-7-7 instead?
Every man, woman in child in the United States would have received $24,000.
A family of four would have gotten $96,000.
And that's without an income test.
New data from the U.S. Census Bureau shows that 100 million American citizens--one of out of three--subsists below or just above the official poverty line. Demographers, statisticians and economists were stunned. "These numbers are higher than we anticipated," Trudi J. Renwick, the bureau's chief poverty statistician, told The New York Times. "There are more people struggling than the official numbers show."
For four decades progressive economists have warned that the middle-class was being eroded, that the United States would become a Third World country if income inequality continued to expand. They can stop. We're there.
These poor and "near poor" Americans comprise the vast majority of the uninsured, un- and underemployed, and foreclosure victims. If Bush-Obama's 7-7-7 Plan had gone to each one of these 100 million misérables instead of Citigroup and Bank of America, the IRS would have mailed out 100 million checks for $77,700 each.
This would have paid off a lot of credit cards. Kept millions in their homes, protecting neighborhood property values. Allowed millions to see a doctor. Paid for food.
A lot of the money would have been "wasted" on new cars, Xboxes--maybe even a renovation or two. All of which would have created a buttload of consumer demand.
If you're a "99er"--one of millions who have run out of unemployment benefits--Obama's plan for you is 0-0-0.
If you're one of the roughly 20 million homeowners who have lost or are about to lose your house to foreclosure--most likely to a bank using fraudulent loan documents--you get 0-0-0.
If you're a teacher asking for a raise, or a parent caring for a sick child or parent, or just an ordinary worker hobbling to work on an old car that needs to be replaced, all you'll get is 0-0-0.
There isn't any money to help you.
We don't have the budget.
You can't get the bank to call you back about refinancing, much less the attention of your Congressman.
But not if you're a banker.
Bankers get their calls returned. They get anything they want.
There's always a budget for them.
They get 7-7-7.
© 2011 Ted Rall