Jon Stewart brought up this analogy tonight on the Daily Show. Essentially, the Bush administration is using the same strategory that they used in Iraq: Ask for Congressional authorization but say there is virtually no chance that the Congressional authorization would be used.
Just read what Paulson had to say:
Mr. Paulson walked lawmakers through his logic. By giving him the authority to spend an unlimited amount of money, he said, the markets would accept that the government’s commitment is solid, and that would increase confidence.
In turn, that would significantly decrease the odds that the government would need to spend any money at all.
“If you’ve got a squirt gun in your pocket you may have to take it out,” he said. “If you’ve got a bazooka, and people know you have it, then you may not have to take it out. By making it unspecified, it will greatly expand the likelihood it will not have to be used.”
But the logic did not seem appealing to several Republicans and Democrats on the banking committee, who raised concerns about taxpayer exposure, and left unspoken the view that Congress would not quickly surrender the power of the purse.
“You don’t want to put a dollar amount — I understand the reasons for ambiguity and not stating things,” said Senator Richard C. Shelby of Alabama, the senior Republican on the committee. “I think you are risking taxpayer dollars here. To give you — we have respect for you at Treasury — a blank check? I’m not so sure. We’ll have to talk.”
Mr. Shelby added, “I fear we’re sitting on a financial powder keg.”
I hope Congress isn’t retarded enough to go along with this, but I’m afraid that they are.
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