Economics 101

There are two lines of defense the Federal Reserve employs in stabilizing the economy in recessionary times, one is monetary policy which deals with injecting money directly into the banking system so that loans can be made, and interest rate manipulation to elevate peoples interest in acquiring those loans. The government has taken monetary policy to a level unseen in previous recessions by injecting over a trillion dollars recently, and rates are the lowest in decades. It only makes sense to believe fiscal policy, which involves government spending, and taxation will be implemented with the same fervor. This administration has set the table for spending on the health care, immigration, and the green economy agendas. Huge tax increases across the board are the net result for repayment of these debts with a touch of hyperinflation and dollar devaluation to boot. Tea parties are happening across the nation tomorrow, to show peoples rejection of such irresponsible fiscal policy. Sacramento California expects over ten thousand people to show up, at the steps of the state capital. With businesses closeing daily, and state revenue drying up tomorrows tea party should be quite interesting to say the least.