The Mechanics Of Fiscal And Monetary Stimulus

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It’s now undisputed among economists that Obama saved the global economy from financial ruin following the financial crisis of 2007-08, which was created by the excesses of capitalism under Bush. But how exactly did Obama and Bernanke achieve this seemingly impossible feat? The answer is that they used their superior understanding of economics to hack the economy into growing, even though its natural trajectory at the time was to crash.

At it’s root, the economy is driven by spending. When you spend a dollar, you are handing that dollar to a business, who will in turn spend it and hand it to someone else. This transfer of dollars from person to person is what generates economic growth. We measure this growth with metrics like GDP, which measure the spending directly, so when spending rises, by definition, GDP (i.e. economic growth) rises too.

Fringe right wing economists argue that economic growth should actually be measured by things like technological advancement, and how many consumer goods like fuel and food the average wage can buy. They also argue that savings and careful investment are needed to get capital into the right hands and fund innovation. But this has been thoroughly discredited by accredited economists, who have proven that wild, indiscriminate spending on anything and everything is far more effective.

So, empowered by this knowledge, Obama and Bernanke embarked on a range of well informed fiscal and monetary stimulus programs, designed to get people borrowing and spending as much as possible. And it worked wonders. The stock market recovered from one of its worst crashes in history and went on to make new all time highs, all thanks to this new money flowing through the economy.

Conservative economists argue that encouraging short term spending simply encourages the economy to put all of its resources into producing non-durable consumer goods, instead of investing in new technologies, and that this, along with the bloated financial industry, is eating the real economy alive. But smart economists like Paul Krugman point to how spending sprees like the one during World War II have historically lead to incredible innovation and technological advancement.

Now that we understand the root of economic growth, consumer spending, we need to do everything in our power to promote it as much as possible, including negative interest rates, government-backed credit cards, and bigger-than-ever student loans. Spending makes the world go around, so let’s party and spend like there’s no tomorrow!

richandrenee

The only possible down side to deeply negative rates would be for selfish people to start hoarding cash. This can simply be remedied by removing cash from the system – which will have the added benefit of stopping terrorist funding.

On a more personal note – I’ve downloaded the picture of Paul to put in my special file. I hope that’s OK?

trav777

It’s important to BORROW and SPEND.

Debt = wealth according to top accredited economists.

anon
anon

Sadly MillionDollarBonus still refuses to publish his address so I can send over some legbreakers and teach him the TRUE job of debt.

As a result I think his Accredited license should be revoked.

anon
anon

At its root the economy is production of goods and services, because no matter how much money you have, you still can’t eat it, wash with it, drive in it, fly in it or

even post retarded articles on the internet with it.

Pbier

Just got home and read this excellent article. Today’s LGBTQIAMA rally was especially long as we had to give equal time to each community within LGBTQIAMA. The LGBTQIAMA community voted overwhelmingly for the Asexual ACE community to join their ranks but the asexuals politely declined, asking to be left alone as they were not interested in anything really and certainly not ‘stimulus’ which is the topic of this article.

Black Flies Matter
Black Flies Matter

O/T – Well bugger me sideways…

anon
anon

In other news

I’ve had a bit of a change of heart and have to admit that the trans girl kinda kicks ass.

littleshoppinlucy
littleshoppinlucy

Oh wow – that is so great Anon. If you stop saying nasty things about minorities and admit that xenophobia is hurting you – you’ll finally be able to find love and be happy 🙂

anon
anon

How can I take advise from someone who cooked and ate their pet guinea pig?

Just heartless.

anon
anon

For shame

deleting a perfectly good post about roaches and replacing it with a post about a Trans.

on second thought they are related.

ROTFLMAO!!!!

richandrenee

It’s mostly racist and misogynist ideas about beauty that distort the equal distribution of sex BFM. You should already know this – it’s 101!!!

anon
anon

A healthy body is a beautiful body, while a fat rolly polly body is an unhealthy body and therefor by definition an ugly body.

Mismatched, deformed or even surgically altered bodily features (including the face) detract from beauty in that they are indicators of genetic damage.

Those who want to breed a pure human offspring (instead of a genetically damaged and unsightly mutant) look for these signs of genetic damage and impure genetic material and label them as unwanted and therefore UGLY!

So misogynists are actually looking for females to father ( and mother) genetically superior offspring

as opposed to unsightly trash.

anon
anon

Replacing the roach post

According to this Muslim, jihadists don’t think of themselves as terrorist but as “pest control” experts.

http://www.dailymail.co.uk/news/article-4541464/Muslim-MP-says-terrorists-non-believers-cockroaches.html

‘You squish the cockroach because you’re disgusted by it’: Australia’s first female Muslim MP says terrorists see non-believers as sub-human and not to dismiss link between terror and Islam
believers as sub-human.

‘So if you see a cockroach and squish it, you don’t squish the cockroach because you’re angry at it,’ she told Sky News on Thursday night.

anon
anon

In other news

The Communist Jew Merkel sez “we need to rely on ourselves more because we can’t rely on Trumps America.”

This is after she cut German defense spending to less then 1% of GDP, let in thousand of Muslim terrorists, 10’s of thousands of Muslim rapists, hundreds of thousands of Muslim illiterates and millions of Muslim welfare leeches into Germany.

All NOT for the betterment of the Germans she is supposed to represent, but 100% for the Communist Jew goal of the destruction of the Christian white race.

http://www.dailymail.co.uk/news/article-4550106/Merkel-warns-Europe-no-longer-rely-Trump-s-US.html

German leader warns that Europe can no longer rely on Donald’s America and says its leaders must take ‘destiny into our own hands’ after stormy G7 Summit.

I’m sure the Communist Jew heritage has something to do with the destiny she is talking about.

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