EVEN BETTER

The Paul/Grayson Bill, forcing an audit of the Federal Reserve moved out of committee. This will trigger a huge fight as the fraudsters attempt to hide their stealing. Like the whitwashed 9/11 Commission Report, the outcome will depend on auditor seleection, if it ever gets that far. So many hurdles to get at the rich and powerful.

Deficits are not the problem. Deflation is. Bank lending is shrinking, consumer spending is down, housing prices are falling, unemployment is soaring and the wholesale credit markets are in a shambles. Which one of these problems is deficit related? None. This isn't the time to slash government support in the name of "fiscal responsibility". Obama needs to ignore the alarmists and deficit-psychos.

Has Obama perused the jobless figures lately? Has he noticed the Fed shoving more than a $1 trillion under the collapsing housing market with no sign of improvement? Has anyone told our strapping sagamore that the entire financial system is resting on a crumbling foundation of garbage mortgages, toxic paper, and non-performing loans?
Cutting the deficits now is a suicidal policy that will end in catastrophe.

Consumers aren't borrowing and the banks aren't lending. Unemployment is soaring and deflation is pushing down asset prices while the burden of personal debt is rising in real terms. It's a very bleak report. The only sign of improvement is that "things are getting worse more slowly".

Stimulus works. It speeds up recovery, minimizes unemployment and stops asset prices from overshooting on the downside. Here's an excerpt from "The effectiveness of fiscal and monetary stimulus in depressions" a scholarly analysis of stimulus by economist-authors Miguel Almunia, Agustin S. Benetrix, Barry eichengreen, Kevin O' Rourke, and Gisela Rua: "Where tried, fiscal policy was effective in the 1930s....The details of the results differ, but the overall conclusions do not. They show that where fiscal policy was tried, it was effective."

$1 trillion, $2 trillion, even $3 trillion--whatever it takes--should be pumped into the jet-stream so the dollars fall to earth like a spring rain from sea to shining sea. That will get people spending again. That will put people back to work. We'll worry about the red ink later.

No more excuses. No more crybaby blabber about deficits. Just do it.

Excerpted from Mike Whitney @ Counterpunch

bendor,

In my mind, the only legitimate use of stimulus money is new construction and repair of our infrastructure: roads; schools; water, power & sewer distribution systems; public transportation systems; parks.

Other important changes would force investors to take a hit, such as writing down mortgages or lowering interest rates for those who qualify after the change.

Equally important is to go after the white collar fraud which created the mess we're in but is not getting the attention it deserves. Goldman-Sachs's Blankfein first said they are the most productive employees and doing "God's Work", has now publically admitted wrongdoing (without being specific). Investigators and Prosecutors should be crawling all over that operation.

bendor,

In my mind, the only legitimate use of stimulus money is new construction and repair of our infrastructure: roads; schools; water, power & sewer distribution systems; public transportation systems; parks.

Other important changes would force investors to take a hit, such as writing down mortgages or lowering interest rates for those who qualify after the change.

Equally important is to go after the white collar fraud which created the mess we're in but is not getting the attention it deserves. Goldman-Sachs's Blankfein first said they are the most productive employees and doing "God's Work", has now publically admitted wrongdoing (without being specific). Investigators and Prosecutors should be crawling all over that operation.

Tax cuts?

I'm not sure, but the first time Obama said anything I cared for was tax credits for employers that create new domestic jobs. Not a word this year on this important idea. Jobs should be priority #1. Such a plan will be resisted by Wall Street, which is determined to make a fast buck by moving capital, theirs and yours, to Asia where they can make money faster using $5/day labor.