SPENDING and GROWTH is the only way out of a RECESSION otherwise it is a HORROR FLIC, SPIRALLING CONTRACTION a keynesian Depression, that requires SOMEONE to add LIQUIDITY, and that means a NEW DEAL like FDR, or bigger tax cuts than even BUSH is proposing to put SPENDING DOLLARS INTO CONSUMERS HANDS (make that PALMs). The Federal Reserve's Monetary Policy is False, because interest rates require a LOAN and a LOAN requires liquidity out there to repay the loans, or they default, like the Savings and Loan crisis and Japanese Bank failures etc. FISCAL POLICY can put dollars back into our hands (make that PALMs). So can the Treasury with Bond issues, or printing more money period. So can the SAUDIIS and JAPANESE Flood us with T-Bills and other Treasury Paper, that would add liquidity, more than Greenspan could handle, Greenspan would finally be powerless to prevent a recovery. As Liquidity returns, Spending returns, EARNINGS RETURN, the Markets and then the general economy RECOVER.
I am,
Truly your$,
-Crystal Ball |
