A few days ago I posted on the Cash for Clunkers scheme that is just closing in the US (Click here). In the post, I jokingly asked the question – “Why not cash for clunkers for TVs, washing machines, dishwashers, or for that matter, kidney machines”.
It turns out that this wasn’t a joke. Or else somebody in the US administration is reading my blog (Ha Ha). There is such a scheme coming – Cash for refrigerators. Usual rubbish being given on improving energy saving. Cost ? Some $300 m.
It IS becoming a joke. What next ? For some prosaic speculation, click here.
Where will this all end ? The wallet is empty. You are borrowing from your children. And then recklessly spending like this . When the history of our generation is written, it shall be said of us – that was the most irresponsible, reckless generation in all of human history; a generation that committed the unpardonable sin of bankrupting its children before they were born.
The United States Constitution is the one of the most durable of them all. It shall have been in existence for 222 years in a few days. In all those years, it has been amended only 27 times, of which the first 10 were the Bill of Rights. I propose a 28th amendment to the US constitution – “Thou shall not spend what you have not earned”.
India’s Karunanidhi, who doles out free colour TVs as a sop to get votes, is in elite company !
It turns out that this wasn’t a joke. Or else somebody in the US administration is reading my blog (Ha Ha). There is such a scheme coming – Cash for refrigerators. Usual rubbish being given on improving energy saving. Cost ? Some $300 m.
It IS becoming a joke. What next ? For some prosaic speculation, click here.
Where will this all end ? The wallet is empty. You are borrowing from your children. And then recklessly spending like this . When the history of our generation is written, it shall be said of us – that was the most irresponsible, reckless generation in all of human history; a generation that committed the unpardonable sin of bankrupting its children before they were born.
The United States Constitution is the one of the most durable of them all. It shall have been in existence for 222 years in a few days. In all those years, it has been amended only 27 times, of which the first 10 were the Bill of Rights. I propose a 28th amendment to the US constitution – “Thou shall not spend what you have not earned”.
India’s Karunanidhi, who doles out free colour TVs as a sop to get votes, is in elite company !
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4 comments:
Somehow I cant help but wonder, when the limping companies get back on their feet, the government might try filling up it coffers by slapping more taxes? So the treasury will gain its money back and probably this move might help the economy to move forward?
They'll raise taxes alright , but certainly not enough to recoup the massive amounts they are spending. We are screwing up our children's future.
I think the dollar might very soon be on its way out as an internationally accepted currency and the preferred choice of many countries for storing foreign exchange. Although the last such attempt by Russia to start denominating crude oil in euros was met with undisguised hostility by the US.
@Ajay - Don't think so. The weakness of the dollar is what is prompting all this debate, fuelled in part by China. But what is the alternative. The Euro ? which is inherently unstable given that every country in the Euro zone is violating their agreements they signed when they entered it. The Yen ? Surely not. The RMB ? Never. The leader may be tottering, but the alternatives are worse.
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