Tuesday, December 8, 2009

Obama urges major new stimulus, jobs spending



A glimmer of hope. Obama talking about boosting spending to jumpstart the economy. Maybe Krugman got to him at the jobs summit. The president says he's "mindful of the deficits, but we've got more to do."

It's encouraging at least; things had been looking bleak.

On a sour note he's still talking about ways "we're going to pay for it." There's that "out of money" belief popping up again. Gold standard/fixed exchange rate stuff: not applicable.

3 comments:

googleheim said...

If there is no gold standard nor fixed exchange rate, then why is the strength of the dollar in trades so determined by how much "debt" there is in the deficit supposedly ?

... even though when the ECB announced a $600 billion stimulus the Euro does not tank but instead ranks higher ?

Why doesn't the currency market see when the USA makes a giant investment in itself by stimulating the USA economy with spending that creates activity and assets, yet the dollar tanks?

If for every dollar created, there is an asset born - then why doesn't the currency market see that assets are increased during this process and the dollar rises ?

Why did the Euro rally back ? Did our stimulus or TARP or whatever go directly or indirectly to Europe ? What makes the Euro stronger ?

If I remember, the dollar tanked after Bush issued the tax rebates and he spent the people's "surplus".

Why do republicans deficit hawk now when they were the ones who emptied the Clinton surplus in the first place ?

Why/How did the Clinton surplus have a strong dollar ?

googleheim said...

Why doesn't anyone go ahead and admit that the Fed, the banks, and all the Rubin Geitners have already privatized our social security, FDIC, bank deposits, medicare, and any else that is truly tax payer money or tax payer "funds" ( whether bail out, stimulus, or other ) by making it their private slush to invest in stocks so they can report record profits.

my tax money has not been hi-jacked, but my stimulus has - stimulus promised to small business but never delivered

Mike Norman said...

Good questions, goog. Markets can be affected in the short-run by human behavior, psychology, perception, beliefs, etc. If the majority of people believe there is a link between deficits and the exchange value of a nation's currency, they tend to bet a certain way when they see that relationship, even if, fundamentally, there is no evidence to support it. In the longt-term, however, real fundamentals prevail. That is why the rise in deficits and debt have never created a problem.