That's fucking stupid

Amidst all the plans to ‘inject capital’ into the banking systems there is a quiet and understated voice of reason from the US President Elect. While the rest of the world is relying on the banking system which got us into this mess to get us out, President Obama is planning to use the cash that the Fed is busy printing to pay for job creation and infrastructure improvements.

Most governments throughout the world are aiming to drag us out of recession by printing more money and giving it to banks in the hope that they will then lend it to consumers who will take the loans at incredibly low interest rates and spend. It’s a bit like kicking the merry go round when it starts to slow in the hope that it will go on forever.

The idea of using government or IMO funds to invest in infrastructure, create jobs and improve production, will mean that more workers have more money in their pockets and are better able to spend. Injecting cash into the banking system just gets workers into more debt and benefits nobody other than the banking system which got us here in the first place.

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