From Asia Times, the flacid, pint sized ‘stimulus package’ needs more than Viagra to make any headway.
I get a real laugh (“Hahaha!”) out of the US emergency stimulus program of just giving away $150 billion in $800 increments to various citizens, who total, I assume, 18,750,000 people at 800 clams apiece. Hahaha! Free money! We have now reached the point where the economy is so screwed up from the Federal Reserve’s neo-Keynesian econometric stupidities that they are reduced to urging Congress to give money away to keep the economy from imploding because they can’t find people to loan money to at interest rates that are less than the rate of inflation? Hahaha! We’re doomed!
The point of the article is to invest in gold, expected at some point to be worth $10k per ounce as a hedge against the ‘collapse’. Whether that is true or not is too deep for me but Mogambo takes another stab at the stimulus package by pointing out that we are financing our tax cuts by borrowing money, mostly from China.
Then I knew I was right about it being the stimulus program that has unnerved him when he went on to say, “the chicken-in-every-pot that the US government is about to offer Americans via a tax rebate is so puny and belated a ‘solution’ as to be laughable. Even if such Keynesian quackery could work, and even if the government were to enact a big enough giveaway to thwart deflation for perhaps a year or two – say, by offering every household a new Chevy Tahoe or a kitchen-remodel – it would only put us that much deeper in debt, since Congress would be spending money created from thin air rather than raised through taxes.”
Our federal deficit is now bigger than our budget! Think about that.