On Feb 10, 2009, at 4:28 PM, Shane Taylor wrote:
> Doug Henwood wrote:
>
>> You could think of the Treasury as contributing equity and
>> the Fed, debt. It seems a little loopy to me, in an era of
>> deleveraging.
>
> It circumvents Congress, no
It does, but I don't think the most urgent need for the U.S. economy right now is borrowing to finance fresh borrowing. It should be to promote an orderly deleveraging, a humane austerity program (meaning that it should fall on the top 5-10%), and a long-term transition away from consumption and towards (social) investment.
Doug