Tuesday, January 20, 2009

For Those About To Rule (We Salute You!)

Wall Street congratulated our new President today: Dow Jones fell 332 points. Was it because he is a Democrat? Stocks historically did better under Democratic presidents. Because he is planning to raise some taxes, eventually? Wall Street knew it all along. This is about something which became known today, during inauguration.

Maybe this: "new era of responsibility"? Maybe Wall Street thinks that President really means it and instead of throwing as much money as Fed can print on the problem, he'll start counting it?

Responsibility is good. But it won't fix our current mess. Whatever multiple Japanese governments did in 1990s, they were not irresponsible. Wasn't enough. We are in Great Depression 2.0, and the only way out is to print money and spend it. If deflation takes hold, it would be too late. Mister President, please instruct Treasury to work with Fed to throw more money into the system. Uncle Ben knows that we need it, he'll do his part. Right now I don't even care if this money spend on some good projects or just thrown down from helicopters on poor neighborhoods. Whatever increases amount of money in circulation, not on bank reserve accounts.

Let's be irresponsible. Let's spend tons of money, for good or not, and defeat deflation while it's still a baby. Just drown it in money!

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