USA TODAY: …Many economists say last week’s disappointing report on job growth in August means the Fed will likely announce Thursday that it will buy more Treasury or government-backed mortgage bonds to lower long-term interest rates and stimulate economic activity….
Yet they warn that uncertainty among businesses and consumers over looming federal government tax increases and spending cuts on Jan. 1 is likely to limit the benefits of any stimulus.
“When the economy is running at less than 2% growth and there are so many domestic uncertainties and geopolitical risks we’re facing, … you’re not going to significantly increase hiring at this point,” says Bernard Baumohl, chief global economist at the Economic Outlook Group… (more)
EDITOR: Businesses don’t hire and invest because money is cheap…even if it were interest free. Business hire and invest because they have more customers! Only fiscal stimulus such as the President’s “Jobs Bills” can put people back to work and, via the ‘multiplier effect’, general buying power. The “American Recovery Act of 2009″ prevented a depression but failure to follow up with a second such effort has prevented a return to prosperity.
Better times automatically reduces the ratio of national debt to Gross Domestic Product. It also enables the balancing of the budget and the reduction of the National Debt. With the usual accompanying 2% inflation, the National Debt is further reduced.
