They will not be using it to create jobs, fix roads, etc.
Joanna
----- Original Message ----- From: "Michael Pollak" <mpollak at panix.com> To: "lbo-talk" <lbo-talk at lbo-talk.org> Sent: Saturday, October 9, 2010 1:12:10 AM Subject: Re: [lbo-talk] They're printing another trillion....
On Sat, 9 Oct 2010, 123hop at comcast.net wrote:
> We're fucking doomed. They're printing another trillion....check this
> out
>
> http://www.rollingstone.com/politics/matt-taibbi/blogs/TaibbiData_May2010/217520/83512
This is actually a good thing. Not as good as huge fiscal stimulus would be, but better than nothing in a position where we've got to try something if we don't want to end up envying Japan's lost decade.
Monetary policy is not Taibbi's strong suit. It's one of those things that just doesn't into a predator template.
Krugman and Robin Wells give a good explanation of why this is a good idea -- and something we desparately have to try if all other options are closed, even though it might not work -- in part 2 of their 2 part NYRB article on theories of the slump and how the evidence has adjudicated between them. If you're interested in the subject, I highly recommend reading Part 1 first, not only because it's better in itself (it's a first rate primer on the subject IMHO), but because the ideas laid out there are probably necessary for understanding the recommendations in Part 2.
Part 1:
http://www.nybooks.com/articles/archives/2010/sep/30/slump-goes-why
Part 2:
http://www.nybooks.com/articles/archives/2010/oct/14/way-out-slump
Michael ___________________________________ http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk