“Today’s unparalleled expansion of federal debt and obligations is being dressed up as textbook “Keynesian”. It’s rather obvious that we are in dire need of some new books, curricula and economic doctrines. But from a political perspective, the title is appropriate enough. From an analytical framework perspective such policymaking is more accurately labeled “inflationism” – a desperate attempt to prop inflated asset prices, incomes, business revenues, government receipts, and economic “output”. There have been many comparable sordid episodes throughout history, and I am not aware of any positive outcomes.”
Doug Noland
Asia Times
3rd March, 2009
Bloomberg’s Mark Pittman and Bob Ivrya reported last Tuesday: ” … the US government has pledged more than US$11.6 trillion on behalf of American taxpayers over the past 19 months, according to data compiled by Bloomberg. Changes from the previous table, published February 9, include a $787 billion economic stimulus package. The Federal Reserve has new lending commitments totaling $1.8 trillion. It expanded the Term Asset-Backed Lending Facility, or TALF, by $800 billion to $1 trillion and announced a $1 trillion Public-Private Investment Fund to buy troubled assets from banks. The US Treasury also added $200 billion to its support commitment for Fannie Mae and Freddie Mac … ”
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In These New Times 