It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
The Bush-Paulson bailout plan of approximately $800 billion has been followed a few months later by the Obama-Geithner stimulus-bailout plan of another approximately $800 billion. Together it adds to $1.6 trillion in new Treasury debt, much of which might have to be monetized.
The U.S. money supply as measured by cash in circulation and demand deposits (checking accounts) is currently about $1.4 trillion. If this year's budget deficit is monetized, the money supply doubles. If next year's budget deficit is monetized, the money supply would have tripled in two years. Inflation would explode. The combination of high unemployment and high inflation would be devastating.
Originally posted by grover
Really though marg the unemployment issue is an effect of the economy... he has extended unemployment even though some republican loons like jidel are refusing.
Originally posted by marg6043
reply to post by grover
Sorry but Obama in my opinion is losing his grip on power...
Obama Courting Disaster,
He proposes huge federal deficits from 2009 to 2011 to prop up domestic demand and break the negative feedback cycle of rising unemployment, falling incomes and sinking consumer spending, while recapitalizing the banks to get credit flowing again.
the President promises to borrow less in 2012, when he believes the economy will grow robustly again.
The meltdown was caused by three great forces—Chinese mercantilism, dysfunctional U.S. energy policies and Wall Street abuses.
However, as the economy recovers in 2010 and 2011, U.S. imports of Chinese goods and Middle East will oil expand significantly. When federal stimulus spending subsides in 2012, either foreign lenders and banks finance another round of reckless U.S. consumer borrowing, or the demand for U.S. made products will fall and the economy will fall back into recession.