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To: DebtBomb who wrote (172122)12/17/2008 10:21:51 PM
From: John ChenRespond to of 306849
 
"The latest leak puts the "stimulus" at $1 trillion over a couple of years".

That's suicidal bandaid approach to 'cure' the economy.

REPEAT, this is a REPEAT:

The only option ( enhanced ) is the whole gov./FED lead the
nation to kneel down, bow and beg for mercy and forgiveness
from the Gods/Godesses of money of the wallstreet shrines to
release the 'trapped liquidity', 3 to 5 minutes a day, before
anyone carry on their normal business.

Make sure 'no child left behind'.

If the Gods/Godesses of money have mercy and willing to
release their liquity, then there is a fighting chance to
calm inflation and have liquidity flowing freely.

(EDIT: never mind about fighting inflation. WE NEED INFLATION,
HYPER-INFLATION, to be exact )

ANY OTHER ATTEMPT will be deemed futile and fruitless and
smoke-screen-and-mirror-to-fool-the-public.



To: DebtBomb who wrote (172122)12/18/2008 7:10:43 AM
From: Dan3Respond to of 306849
 
Re: The public works are usually less productive than the foregone private investment.

It's why I like the idea of a retroactive FICA tax holiday. It creates about as "natural" a synthetic demand as there could be.

Half of it goes to businesses and half goes to consumers. It's spread fairly evenly throughout the economy and affects the economy as closely as possible to "natural" growth.

The market then determines how that stimulus is spent.

OTOH, I agree that we also need to invest in our roads, bridges, power, and communications infrastructure. But I really believe that we'll all be better off if a lot of appears in economy as though it were "natural" demand. It could also be done very, very quickly as how much and who it goes to comes from an existing list of companies, individuals, and amounts that reflect past successful economic activity.