Jason Rines (iThinkBig)

Bernanke Brushes Aside Inflation, Focuses on Growth

The Bush Administration has listened to some timely suggestion from a collective group of VC guys I know, but the main suggestion of job creation they have yet to do (these suggestion were a month ago, so we'll see)

The Administration has the power to declare an energy crisis. To most of us, $4 gas or paying $3.50 for a gallon of milk doesn't break the bank. But to half of America, it does and energy along with falling home equity means most American's are quickly reducing spending.

The plan goes like this: The President declares crisis and de-regulates domestic drilling everywhere. Nuclear plant build out regulation is softened. $150 B from Treasury goes into rapid acceleration of nuke plant build-out, biodeisel and coal liquification. Another $50 B is provided to the SBA & specific commerical banks (those with healthy balance sheets) to loan the service industry (75% of America these days) the funds for entrepenuars to start thousands of new businesses that will service the energy sector along with infrastructure start-up money.

Millions of jobs will be created and the price per barrel of oil would crash immediately after the announcement, helping Main St. tremendously in the short-term.

Will the Administration to this? It's yet to be seen. If it doesn't we will have some recover in the second half of the year, but by the end of next year be in full blown depression, because it only takes one Central Bank to fail to cause systemic collapse. Sure, the Fed might be able to bail another out now maybe even two, but the Middle Class of America who will pay this burden later cannot bear added massive taxes on top of exorbident inflation, housing correction etc. We must innovate our way out of this mess and eventually export energy products.