Stimulus Package

“Fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary actions alone,” says Federal Reserve Chairman Bernanke. You know, the guy with the beard.

“Republicans and Democrats are divided over what to include in an economic stimulus package,” according to Investor’s Business Daily. Ideas under consideration are tax rebates for individuals and businesses, aid to the states and more cash for the poor and middle class. Guess which party wants which remedy.

The Bush administration wants to “pump as much as $150 billion into the faltering US economy” according to the Boston Globe.

” . . . perhaps the easiest “stimulus” package Washington could . . . enact would be to drop money from planes into the hands of voters/consumers,” opine Bill Thomas and Alex M. Brill in the Wall Street Journal. It would take months to get any action so it wouldn’t take effect until, say, right before the elections. What a coincidence.

Image by Mike Licht.

Download it here. Attribution: Mike Licht, NotionsCapital.com

Caution: Fiscal stimulus can lead to dependence. If stagflation persists more than three quarters, convert assets to gold and bury it.

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