Finally! After years of watching my old industry downsized to obscure buildings in anonymous looking research centers, big printing is making a comeback. Printing's revival strangely enough, coincides with the decline of the economy and the desire of the many states of America to continue to spend at the pace of a 2-income family even though one of the once-earning spouses has experienced a layoff.
States and their legislative calsses can't not spend. Spending is the life-blood of government. What fun is there to be had by just going to the office & trying to craft sensible legislation when there's no fun or largess to tie a representative's name to.
Michigan, as you may know has had a recession going for 7 years now. Not to be out-done, California is looking at a $14 billion dollar shortfall. Yup, that's billion. Big time states come with big-time budgets.
Michigan's problems are simple: too many regulations chasing too few producers. Add to that many taxes upon business, the humble hourly earners, and a feckless representative class in Washington that sits idly by and watches their environmentalist colleagues in congress regulate Michigan's auto industry to the ash heap. Pile on a lousy national energy policy, correction: NO national energy policy. And whaddya get? Common folks that don't want to buy autos fearing that gas prices will skyrocket again or, that automakers will be legislated out of existance.
So what's a weak-sistered congress to do in the midst of a recession largely of its own making along with a reckless attitude towards American industry? Print money!
Heck! The devaluation won't hit the monetary markets 'till day after tomorrow, so spend it now at the higher rate. Tomorrow's problems are someone else's problem.
Just don't mess with my retirement or my medical!