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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (581044)	8/14/2010 6:52:28 PM
From: longnshort	4 Recommendations Read Replies (2) \| Respond to of 1571928

Backtrack: Obama ‘Not Commenting on Wisdom’ of Ground Zero Mosque breitbart.tv what a lying weasel Obama is

To: combjelly who wrote (581044)	8/15/2010 2:44:22 AM
From: i-node	Read Replies (1) \| Respond to of 1571928

>> Umm, let's see. Israel in the early 1980s. They had gotten locked into a hyperinflation scenario. You don't know WTF you're talking about. It is a fact they were facing hyperinflation in the early 80s, as a result of the '73 Yom-Kippur war and the attendant massive government spending to support the war. That was the beginning of the "hyperinflation scenario" -- too much government spending. But where you REALLY get confused is in what they did about it. The "Great Stabilization" program of '85 entailed a massive cut in government spending, so much so the deficit was eliminated altogether during '86. And the cut off the ability to print more money with the "No-printing" Amendment. All precisely the opposite of what you claimed. And in the period from 84 to 87 inflation dropped from almost 500% to a fairly normal level of maybe 10%. Or, China in the recent meltdown. They had a huge stimulus package as a percentage of GDP. While things got a little rough there for a while, they quickly recovered and are back to 9%+ per year growth. I think it is pretty early to deem China to be "recovered". Or to attribute what recovery HAS occurred to their spending. The real point with China, however, is that their $585B stimulus was only funded 1/4 by the government, the rest being funded by the banks and it is unclear even today the extent to which this was actually NEW spending versus previously planned spending. The WSJ put it this way: "Yet it eventually became clear that official government spending was not at the heart of the recovery strategy: the package called for just 1.18 trillion yuan in new central government investment over two years, along with some tax breaks."