So just what is purpose of the stimulus plan? - Spend like mad then devalue the currency?

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So just what is purpose of the stimulus plan? - Spend like mad then devalue the currency?

We have all seen the stimulus plan and the rational behind it, spend to create jobs. But we have also seen that much of the spending allocated doesn't seem aimed at creating jobs at all, it just seems to be spending for spending sake.

In this article which looks at the possibility of banks being nationalized by Autumn (in 6 months?) comes an interesting comment on what one person thinks might be the underlying motive of the stimulus.

Indeed as the writer mentions China is squealing hard about the way its American debt might be affected by the stimulus program.

From http://blogs.reuters.com/gr...
... Quote:
It is all to clear what the government cannot announce. The plan of last resort, which has been on the shelf for years, is now in effect and is designed to liquidate the US debt via inflationary forces, just like the Wiemar Republic liquidated its WWI Reparations debt.

The majority of US debt is now foolishly being held by non-US parties and they will feel the blunt of the blow. While the US and its citizenship will feel the immense pain of hyper or semi-hyper inflation, most Americans are in debt and have little savings to be wittered away with inflation.

In fact, ownership debt of homes will be greatly eased should the value of the us dollar plummet. Paying off a $200,000 mortgage with a worthless currency is not a bad deal. If the cards are played correctly, the US can emerge stronger than the rest of the world in 10 to 15 years.

What is needed, is massive spending by the US government and new printing presses to keep up the pace. It really doesn’t matter what it is spent on, just quickly. Hopefully the US is not planning on a 2010 recovery, but a laying the groundwork to survive for the next ten years and re-emerge as a world power once again in 2018, while the rest of the world is still trying to figure out how to value worthless US treasuries.

With events of the past few years, it is impossible for the US to pay down its debt at its current or near current value, nor should it pretend to try. The US must strike first on this devaluation process before foreign banks are able to break first.

Should the foreign banks start the rapid devaluation process first, the process will be out of US political control, chaos many ensue and potential benefits of domestic spending will be lost to premature inflation. Any US recovery will surely be greatly delayed. I can only go by what I see, and I see the US government spending as fast as they can.

There you have it, although this is just an anonymous post it does seem to have a plan that might be being followed in the background. The response? Buy gold.

Here is one overview of the plan.
 http://apnews.myway.com/art...
Its pretty rah rah, but its plain that if it succeeds then the Republicans are wiped out, truly their policies would be seen as failures, however if the plan fails, then so is Obama.
By netchicken: posted on 15-2-2009








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