The treasury has made a huge mistake in rescuing GM as well as AIG and
has made matters worse.
They are now trying to sell off both and hoping to get some of the
It would have been better to let both companies fall on their own and
if they had done so matters would be better now.
Instead the situation is now worse than it ever was and no end in
The treasury thought they could print massive amount of money and then
withdraw it slowly but they have found that it is impossible.
What will happen is that inflation will be the result of all this
overprinting of money.
The reason the inflation has not picked up speed yet is number one the
massive overpricing of houses that is coming down and also that
foreigners have been willing to buy US bonds.
Both will come to an end soon and the amount of money in circulation
will begin to really make ordinary things become very expensive.
U.S. President Barack Obama and his administration weakened the
country’s economy by seeking to foster growth instead of paying down
the federal debt, said Nassim Nicholas Taleb, author of “The Black
“Obama did exactly the opposite of what should have been done,” Taleb
said yesterday in Montreal in a speech as part of Canada’s Salon
Speakers series. “He surrounded himself with people who exacerbated
the problem. You have a person who has cancer and instead of removing
the cancer, you give him tranquilizers. When you give tranquilizers to
a cancer patient, they feel better but the cancer gets worse.”
Today, Taleb said, “total debt is higher than it was in 2008 and
unemployment is worse.”
Obama this month proposed a package of $180 billion in business tax
breaks and infrastructure outlays to boost spending and job growth.
That would come on top of the $814 billion stimulus measure enacted
last year. The U.S. government’s total outstanding debt is about $13.5
trillion, according to U.S. Treasury Department figures.
Obama, 49, inherited what the National Bureau of Economic Research
said this week was the deepest U.S. recession since the Great
Depression. Even after the stimulus measure and other government
actions, the U.S. unemployment rate is 9.6 percent.
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