Monday, January 5, 2009

Fed Officials Endorse ‘Big Stimulus’ to Battle U.S. Recession

San Francisco Fed President Janet Yellen said yesterday at an economics conference in San Francisco that “it’s worth pulling out all the stops” with an economic recovery package. Charles Evans, president of the Chicago Fed, told the same gathering he believes a “big stimulus is appropriate.”

The markets want one too!

But it makes no difference what Obama, the Fed and the markets want. It's up to Congress and it will not pass in the size sought, nor will it pass anytime soon.

Hobbes was right to reject separation of powers in his definition of legitimate government. The central authority must have control of executive, judicial AND legislative power. Congress is more trouble than it is worth.

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