Isn’t it odd that people who want the federal government (which cannot go bankrupt) to borrow less, also want the private sector (which is subject to bankruptcy) to borrow more.

“That kind of money, leveraged and lent out to small businesses, can do more for creating jobs than just about any other government program.”

This is the myth of fractional-reserve banking. It doesn’t exist. Bank lending is not limited by its reserves. A bank could have $0 reserves and still lend billions. Bank lending is limited by capital.

Rather than trying first to indebt business, the government first should provide business with profits. It does this by buying goods and services, in short, by deficit spending.

Rodger Malcolm Mitchell

1. $30 billion to small businesses will create new jobs? That seems to be your de-facto preseumption. If so, please provide your own proofs/studies so that others may respectfully examine.

2. redistributing dollars from “bad/profitable” oil companies to “noble/profitability unknown” small businesses is a good thing?

I think you are having more and more “Krugman” moments.

You want to create jobs… mandate that 10% of workers salaries be put into a 401k actively managed by an ultra-low cost provider like Vanguard. Mandate further that the funds be invested in risk assets like stocks and corporate bonds. Give workers ZERO access to the funds for any reason until they collect social security in retirement or through the disibility program.

Phase the manditory 10% investment program in at 2% per year if you want so that all the stores that peddle overpriced frivlous crap don’t close overnight.

Net result we’re a nation of savers again… capital is plentiful and the majority of the working class can look forward to a comfortable retirement rather than scrape by at or near poverty line income levels as millions of seniors sadly do.

If you progressive types want to further advantage the working poor than put their earned income tax credit directly into the 401k instead of letting them spend it on beer, smokes, and Kentucky Fried Chicken.

The global trading system: Break it, then mend it.

The brutal truth is that profits are up, even as the American people spiral down into the toilet.

Who cares about Marx, or Reagan. Just break globalization.

Comparing growth rates to absolute values? Excuse me, I think I can hear my bullshit detector ringing.

http://www.bloomberg.com/news/2010-08-17  /china-drains-obama-stimulus-meant-for- u-s-economy-commentary-by-andy-xie.html

I hate what Xie is saying but it explains things very clearly.

Xie in China does not have a horse in the American political game. You certainly act like you do and it is ruining your reporting.