Our newly inaugurated President asserts that if we don't pass his stimulus package it will be a "catastrophe" for the economy. This is demonstrably false, sickeningly so, because it echoes so closely the late and not lamented Hank Paulson's adumbration to Congress regarding the urgency of passing the "No Banker Left Behind" bailout bill. Whenever anyone employs scare tactics of this sort, you have reason to believe you are dealing with a bad faith gesture coupled with more than a whiff of desperation.
It's equally nauseating because if one looks closely at the stimulus package one will see that in electrical terms it barely has enough wattage to run an alarm clock, let alone the electricity requirements of an entire household. And there is more rubbish in this stimulus package then on a New York City sidewalk after a trash workers strike.
In any event, more stimulus is not what this humble blogger thinks the U.S. economy needs. What it needs is a government that is honest, ditto for the monetary system, and a banking system that is thoroughly cleaned up. A proper cleanup probably involves setting up an RTC where the cost of dealing with all the "non performing assets" is fairly applied. That means that IF taxpayer money is used in substantial quantities, any and all gains in future go directly to the taxpayer. Any other arrangement is off the table and let the chips fall where they may.
Concurrent with the aforesaid sea change in government and the monetary system must come a great national debate on the advisability of trying to restore our way of life circa 2007 and before. I would argue that constant growth and insatiable consumption are not the way forward. Who is with me?