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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (89570)	11/2/2008 10:45:51 AM
From: studdog	Read Replies (3) \| Respond to of 116555

Mish, Thanks for highlighting what is a major part of the long-term solution to our current mess. I am strongly in favor of massive deployment of alternative energy (wind, solar, geothermal, grid efficiency etc) for several reasons, not the least of which is it represents a way out our economic decline. I am very interested in your opinion regarding deficit spending by governments in times such as ours. I have read that in the 30's, Japan was very successful in averting the worst by quickly beginning a massive deficit spending program (for arms and munition). Their GDP was growing by 1933. FDR tried an acronym soup of programs that made people feel better but did little for GDP, until we too embarked on truly massive deficit spending, again for arms and munitions, at the outbreak of WWII. This is a Keynesian approach and I know you you prefer the Austrian model, but it seemed to work. I suspect that one way or another we are going to get massive deficit spending sooner or later. Instead of arms and munitions as a way out (more likely in a McCain administration) I would prefer alternative energy and infrastructure (more likely in an Obama administration). Go ahead and tear me a new one on this. I am just trying to understand. Karl