Print Story It's just the ghost of a long long dead affair
By R Mutt (Thu Jan 31, 2008 at 09:20:06 PM EST) MLP (all tags)

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< 2008.01.31: Goodbye Cool World | BBC White season: 'Rivers of Blood' >
It's just the ghost of a long long dead affair | 3 comments (3 topical, 0 hidden)
WIPO 1: Only if they come with a side salad by Rogerborg (2.00 / 0) #1 Fri Feb 01, 2008 at 01:55:44 AM EST
WIPO 2: Who am I going to take advice from?  A bunch of penniless bloggers and professors, or people who earned their money the smart way - by inheriting it.  We borrowed our way into this shitswamp, we can borrow our way right the way down to China.  Then we can swipe all their yuan.

You know that those tractor pictures are like cripple-porn for my missus, right?

Metus amatores matrum compescit, non clementia.

the general consensus of economists I've heard ... by lm (4.00 / 1) #2 Fri Feb 01, 2008 at 03:24:36 AM EST
... is that the stimulus package is mostly smoke and mirrors. Such a package is capable of jump starting a moribund economy but in practice is very difficult to time just right. Further, there is a good deal of evidence to indicate that most of the people getting the payout will be using it to either catch up on their mortgages or pay down their credit cards. If so, the impact will be greatly blunted even if it is timed correctly.

Of the current crop of presidential candidates, this is one issue I agree with Huckabee on. Rather than a cash payout, the US would do better to invest a far larger amount in public infrastructure. Repairing roads, building new bridges and the like would do far more for the economy in both the present and the future.

Another good idea I heard would be to sunset the Bush tax cuts a year early. This would accelerate capital spending spending this year and next. But good luck getting that past either Congress or Bush the Apostate's veto pen.

But 150 Billion is really not that big of a deal. The real danger is that cheap money is a large part of what got the US into the present crisis. Given the fed's immediate reaction of making money even cheaper, I suspect that we're only starting to see the beginning of the downhill slope.

There is no more degenerate kind of state than that in which the richest are supposed to be the best.
Cicero, The Republic
Well by R Mutt (2.00 / 0) #3 Fri Feb 01, 2008 at 05:28:41 AM EST
I subscribe to several leftwing and right-wing economics blogs, and they usually manage to disagree on most things. But this time, none of them seem to think that the stimulus package is a good idea, with opinions ranging from "fairly pointless" to "actively harmful". Yet politically, there seems to be a strong consensus in favour of it.

It seems to me that in a case where there's a combination of low/negative growth and low/negative inflation, this kind of stimulus can be a good idea.

But that isn't really the case here: there's low-ish growth and moderate inflation. So the question isn't "how much money can we pump in", the question is "how much money can we pump in without inflation getting too high". So why not use the normal method of pumping money in with interest rates, which are more tunable, have more predictable effects and have shorter lag times.

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It's just the ghost of a long long dead affair | 3 comments (3 topical, 0 hidden)