jesterboomer

Treasury Continues to Harpoon the Real Economy

The author has a point. While it was necessary to save the financial system from collapse, there seems to have been little done to promote the real economy and stop job loss.

Government stimulus needs to be directed to activities that retain the stimulus within the US and generates jobs with a multiplier effect - as well as doing something useful. We have to stop the net outpouring of wealth from the US to Iraq, the Middle East and China. The most obvious candidates:
- massive investment in health care, which create all manner of domestic employment as well as R & D;
- infrastructure and alternative energy, ditto;
- ending the Iraq and Afghan wars - Israel (and neocons) should make peace with its neigbors;
- stop obsessing about the dangers of Russia and Iran. Russia's population is only 90M and diminishing. It's military budget is one tenth that of the US. Scary Russia is history.

To plug the deflation in every asset class, the Government should consider the option of just creating a few trillion $ to invest in the above. Yes it will devalue the $ but in a deflationary environment that is requred to stabilise the economy. Like pushing the reset button to restart the US economy.