This is taken from another forum I frequent, not sure who the original author was. Not all of it is correct anymore, since China isn't really buying US debt right now (no one really is), and auto money will go to Canada, and Mexico, as well as Japan and Korea, but the basic premise still stands:
Stimulus package explained
"Sometime this year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:
"Q. What is an Economic Stimulus Payment?
"A. It is money that the federal government will send to taxpayers.
"Q. Where will the government get this money?
"A. From taxpayers.
"Q. So the government is giving me back my own money?
"A. No, they are borrowing it from China. Your children are expected to repay the Chinese.
"Q. What is the purpose of this payment?
"A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.
"Q. But isn't that stimulating the economy of China?
"A. Shut up."
Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:
If you spend that money at Wal-Mart, all the money will go to China.
If you spend it on gasoline it will go to Hugo Chavez, the Arabs and Al Queda.
If you purchase a computer it will go to Taiwan.
If you purchase fruit and vegetables it will go to Mexico, Honduras, Chile and Guatemala.
If you buy a car it will go to Japan and Korea.
If you purchase prescription drugs it will go to India.
If you purchase heroin it will go to the Taliban in Afghanistan
If you give it to a charitable cause, it will go to Nigeria. And none of it will help the American economy.
The stimulus package is a joke. It didn't work when bush did it, it is not going to work now. In fact, the congressional phone lines were overloaded and shut down from Americans calling in to say NO to the bill. It is SO loaded with pork (20 million for grass on the DC Mall, are you serious?!) it is insane. I think I remember reading that it will take each American citizen $217,000 just to pay THIS back, let alone our current debt, previous stimulus, and upcoming Obama spending plans (Although people still don't seem to understand the President has ZERO authority over what bills are written/passed etc. short of a veto/check mark once they do go through and asking congressman to write a certain bill for him). In my opinion, these "Stimulus Packages" are simply a popularity move, or a "slight of hand trick." Bush probably did it to try and get people more on his side, and Obama is probably trying to keep peoples opinion of him very high while he bombs countries and passes bills he know will cause public outcry. Not to mention they were probably hoping that people would just see "free" money, and not look at what else was in it. Heck, they said today that there was a light-of-day visible loophole to give illegal immigrants some "free" money for every fake SSN they have... Just my uneducated opinion though. Either that, or they really are dumb enough to think it will actually work.
Every American owed about $20,000 when Bush took office. I speculate we will hit half-a-million per capita before we fold the dollar up and wipe with it.
China IS still buying bonds. It isn't tit-for-tat, tax and return like your post suggests, but I do share your rage. Hyperinflation is the doom scenario. If it goes like other countries have historically, basic food would skyrocket in cost in dollars. Given the modern inventory situation, most grocery stores would be empty in around 4 to 5 days. That leads to large scale dislocation and migration. We already have a decrease in Mexican illegals because America is no longer seen as the land of opportunity. Funny that the cost of an election in Iraq may end up being precisely one superpower.
When China stops buying bonds we will know it.
I guess we can buy soda with our stimulus check. High-fructose corn syrup is the basket we have put most of our eggs in.
President Obama says that "economists from across the political spectrum agree" on the need for massive government spending to stimulate the economy. In fact, many economists disagree. Hundreds of them, including Nobel laureates and other prominent scholars, have signed a statement that the Cato Institute has placed in major newspapers across the United States.
"There is no disagreement that we need action by our government, a recovery
plan that will help to jumpstart the economy." ~PRESIDENT-ELECT BARACK
OBAMA, JANUARY 9 , 2009
With all due respect Mr.President,that is not true.
Notwithstanding reports that all economists are now Keynesians and that we
all support a big increase in the burden of government, we the undersigned
do not believe that more government spending is a way to improve economic
performance. More government spending by Hoover and Roosevelt did not
pull the United States economy out of the Great Depression in the 1930s. More
government spending did not solve Japan’s “lost decade” in the 1990s. As such,
it is a triumph of hope over experience to believe that more government spending
will help the U.S. today. To improve the economy, policymakers should focus on
reforms that remove impediments to work, saving, investment and production.
Lower tax rates and a reduction in the burden of government are the best ways
of using fiscal policy to boost growth.
The so called stimulus bill is a laundry list of liberal campaign promises that have little or nothing to do with ending our current economic troubles, and in fact will likely make things worse.
"But it does me no injury for my neighbour to say there are twenty gods, or no god. It neither picks my pocket nor breaks my leg." - Thomas Jefferson, Notes on the State of Virginia, 1782
Arguing with a truck driver is like wrestling with a pig in mud, eventually you realize the pig enjoys it.