$700 billion apparently hasn't helped. What's the next logical step? For Congress, it involves moving the decimal point.
WASHINGTON (AFP) – Democrats in Congress hope to approve a massive president-elect Barack Obama by early February, House Majority Leader Steny Hoyer said on Sunday.backed by
The Democrat confirmed the size of the package would be somewhere in the range of 775 billion to a trillion dollars.
"Clearly, it needs to be very substantial. Every economist from right to left, Republican, Democrat, advises that it has to be a very substantial package if, in fact, we're going to accomplish the objective which is, of course, to stabilize the economy and try to start bringing it back."
Despite Mr. Hoyer's assertions, I know of a few economists who don't think it's a good idea. Not to mention common sense. Our nation, both collectively and individually, is grossly overextended with debt. How can adding so much more help?
Where will we get $1,000,000,000,000? Supposedly Obama doesn't plan to raise taxes on "working families." Can he tax the corporations? If they could afford it, we wouldn't have given them trillions in bailout money. So, there are two real options to get the money:
1) Print it.
2) Borrow it from other countries.I suspect we'll do both, as we've been doing for the last few decades. Both are terrible solutions. Printing money creates inflation. Period. Borrowing it will only be tenable until the creditors (i.e. China) cut us off, or worse, call in their chips. This will happen. If you're one of the pie-in-the-sky people who think otherwise, I have a Ponzi scheme I'd be glad to sell you.