Amazing, isn’t it, how times have changed? Just [Wed.] this morning, President elect Barack Obama stood before microphones and television cameras and told the world that his administration was set to inherit an annual deficit of 1.2 TRILLION dollars. He went on to add that the fiscal 2009 amount did not even include “his” stimulus plan, rumored to be as much as an additional TRILLION dollars, reportedly geared toward infrastructure spending, would be required to “jump start” the U.S. economy.
If that wasn’t a big enough belly full – Mr. President elect stated that “Trillion Dollar Deficits” – for years to come – would be the norm.
So, can anyone tell me how Mr. President Elect, Obama, is going to raise some 2 TRILLION over the next year?
In a recent Bloomberg interview, former FOMC member and Fed St. Louis chief, William Poole, answered that question by suggesting that the Fed – itself in a state of internal conflict - will resort to outright PRINTING of money.
And that’s just the back-drop on the debt front.
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