Sunday, November 6, 2011

Haven't we done enough??

"We simply haven't done enough." says Nancy Pelosi, Jared Bernstein, Mark Zandi, etc. I.e., the stimulus was too small, we need another round and this time we need to go huge!

Now let's see, in the past three years we've grown the national debt by $5.5 trillion and the Fed's ballooned its balance sheet to $2.8 trillion. So I'm guessing we should blow past the [next] debt ceiling by say another $6 trillion and maybe the Fed should buy up another few trillion worth of bonds/mortgages?? Hmm...

George Mason University Professor Don Boudreaux, blogging at, puts it this way;

“It’s as if a person who is bleeding to death because of a gunshot wound in his stomach is brought to a physician.  The physician correctly realizes that the patient is losing massive amounts of blood and, also, correctly understands that such blood loss is dangerous to the patient’s health.

So the physician prescribes massive infusions of blood, period.  If the patient doesn’t recover, the physician orders that the volume of blood-infusions be increased.  If the patient dies, the physician will forever blame himself for not increasing the volume of blood-infusions even further.

If the patient does recover, the blood-infusions will be praised for saving the patient.”

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