To get a better idea of what the government is doing or not doing, you have to look at money supply figures and it is difficult to find a clean, true, look at those numbers.

If the FED is properly monetarizing debt, printing new money, then the government should be moving the economy forward.

But if the Treasury is largely and simply swapping private debt for public debt without the creation of new money or increasing the money supply then the government is not really trying to pull us out of this economic mess.

You can't unlock the credit markets by increasing debt without increasing the money supply to pay for that debt. It is basic economics.

And yes, if you create new money, and the economy gets back to going, and people start pulling money back out of their vaults and out of their hiding places so that there is sudden balloon in the both the money supply and the velocity of that money supply there will result in inflation that goes beyond the intended and desired reinflating of the economy.

The government can not micro manage the economy as though they have a laser medical instrument to hit fine line bench marks.

___

And I am sorry rich people, part of the money supply that will need to be mopped up will need to be done through taxes and not through operations of the Federal Reserve. Government Debt has got to be removed from the economy through taxes before the FED f*cks it up by evaporating money out of the economy before there is true debt reduction.

The top tax rate for people making over 5 million to 25 million dollars in net incomes a year needs to be 70%. The tax should be based on a 5 year average and a one time windfalls should be exempt from this extreme tax, but that kind of tax is the proper way to mop excess money from the economy so as to reduce inflationary pressures.

Economic Centralism where economic power and economic wealth becomes overly concentrated always brings the monopoly game to an end.

___

This economic disaster of deflation happened during a period of massive government spending and government borrowing without the FED properly handling the money supply and without the Treasury properly taxing concentrated wealth. Make no mistake. This economic disaster was in part created by not only the hyper inflation in the commodity markets by too much money being concentrated in the hands of moronic investors but also by the mishandling of the money supply by the FED.

___

Trickle down economics does not work in the long run. That is now proven.

Put the top tax rate where it once was and where it needs to be. 70%. That is not communism though I agree it may not be fair. In the past I may have been one of the loudest opponents of such an idea. But it is necessary and key to getting the economy back to a level bartering system that is not locked from the poor, the middle class, and even the rich. Money in vaults does not help the barter system work. Debt that can't be repaid does not help the barter system work. Getting money into the hands of producers and consumers in the economy is the way to get the barter system back in full throttle.

Make no mistake. Forget all the BS. No matter how complicated or sophiticated an economy may be made by nuts in government at the core of every economy, it is a simple barter system. If bad policies are set that locks that core barter system up, the economy, like a monopoly, games comes to a grinding halt.