As we get closer to the general election, time is quickly running out for President Bush to secure his place in history.  Besides a controversial war, now the President may well be know for destroying the US economy.

On Monday, President Bush will meet with his advisers on financial markets.  Let’s hope they start giving him better advice then they have over his entire Presidential term.  As it stands now, the US economy is in extremely horrible shape and at risk of a full blown economic depression.

Talking about economic depression, the Bear Stearns bailout was performed using a depression era procedure to prop up the failing company.  Sadly, other investment banks may be in the same financial condition as Bear Stearns.  Homeowners losing their homes to foreclosure, however, receive no bailouts from the Federal Government.

If the Bush administration is so intent on stabilizing the economy, now is the time to tear up every trade treaty we have with other countries and start anew.  These one-sided agreements benefit our trade partners and give us nothing more then lead tainted Chinese goods and a higher unemployment rate.

Think about it for a minute.  Say you get a $1,200 tax rebate.  Now you do as the President wants and spend that money on a new digital tv.  Best Buy gets 30% ($360), and the Chinese company that manufactured that tv gets 70% ($840).  I know, this is a very simplified equation that does not take in account transportation costs which may total 5% at most.  If people take their tax rebates and spend it, chances are China and our other other trade partners will get at least a 60% boost in their economy while the US gets the leftover scraps.  The fact is that the US economy no longer controls its own destiny.  Ultimately, the effect this stimulus package in the US will be minor and very short lived. 

The Federal Reserve Chairman believes this economic stimulus package will create 500,000 - 600,000 jobs this year.  I personally doubt it will create many jobs and only prolong the inevitable economic crash that is coming.

If you keep an eye on the headlines, you will see some newspapers across the globe are starting to talk about another Great Depression.  Please read this link if you read nothing else.

Nobody of any political or economic importance in the US is going to step forward and talk about an economic depression.  Economists are paid to paint a pretty picture.  Politicians use tactics such as fear to remain and gain power.  This fear also justifies them having a job, no matter how poorly they do it.  But using fear and spreading panic is another story.  Politicians tend to avoid the truth, no matter how obvious it is.

Democrats are talking about Bush’s economic failures and is likening Bush’s hand off approach to the economy as Herbert Hoover (1929-1930) did.

Let’s hope Monday brings a strategy for President Bush to move this country off this self inflicted path of destruction.  Unfortunately, President Bush’s previous economic insights don’t leave much to be desired and the path our economy is on may be unavoidable.

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