Diary

Another US $Trillion for Global Aid, Recovery, Bailouts?

Healines previewing the meeting of US President Obama with UK Prime Minister Brown this week seem to be concluding that the money is already spent.  With confident predictions of the meeting’s successful outcome, one has to wonder whose pocket is going to be picked for the funding needed to pay for these happy outcomes.  

Obama has already committed $900 million to help terrorists in Gaza to little outcry (perhaps because it’s just inder $1 billion, a ‘trivial’ figure in the brave new world where figures in trillions must be bandied about to get real attention).  Perhaps that was his trial ballon to test how much new foreign aid he could propose without widespread outrage.

With headlines like ‘Global New Deal’ and “Special Relationship Goes Global’ one wonders if we will see the leaders emerge from the meeting with yet another US $trillion committed to global aid, stabilization, recovery and bailouts.

At least Brown is promising tax cuts to help the UK along toward recovery; a measure that Obama has not discussed seriously.

Applying the ‘new thinking’ of liberals, one has to wonder how Brown intends to ‘pay for’ those tax cuts.  EU leaders rejected the idea of eastern Europe bailouts to its newest members, but only due to a paucity of funds, not as a fiscal responsibility decision.  

Obama said repeatedly during his campaigning that we needed to take responsibility for global economic justice.  

Perhaps this week will reveal just how much economic justice that will mean to the taxpayers who actually pay the bills.