What Trillions? It Ain't Money, It's Just Paper

Obama is rejecting the failed policies of the past in order to ..... accelerate the failed policies of the past even more. If one bubble burst, clearly what is needed is a bigger bubble that takes even longer to burst. We obviously need to invest -- in a bigger printing press!

As usual, the politicians have other ideas: bail everyone out, try to reinflate the bubble, squander more resources on arbitrary projects, reward borrowing and debt, and create lots of new money. Every one of these measures props up bubble activities and undermines genuine wealth-generating activities. The bailouts allocate capital away from the prudent and competent and toward the imprudent and incompetent, from the wealth creators to the wealth destroyers. The "fiscal stimulus" fritters away scarce resources on money-losing (that is, value-destroying) projects. Making debt more attractive encourages more of the behavior that brought us to this unhappy impasse, thereby guaranteeing a worse bust in the future. Printing up new money does not magically create new real resources in the economy. It merely redistributes the existing pool of resources into a configuration that does not correspond to real consumer demand. It diverts resources into artificial activities with which genuinely wealth-generating activities are then forced to compete. _Source