Trillion dollar deficits for years

AP News
CHARLES BABINGTON

President-elect Barack Obama says the nation probably faces huge deficits for years to come, but heavy spending is needed now to spur the economy.

Obama said Tuesday the deficit appears on track to hit $1 trillion soon. Speaking to…

China announces more stimulus

China Daily:

The nation’s economic stimulus measures will go beyond the announced 4-trillion-yuan package as more industry-specific policies are rolled out, Premier Wen Jiabao said on Friday.

The government is refining and augmenting the package, because it was "rather preliminary" when announced…

Mark Faber: Short Tresuries, Long Hard Assets

CNBC:

The editor and publisher of the "Gloom, Boom, and Doom Report" says the best place for investments these days is in hard assets, but he has some suggestions for stock-market investors, too.

"You want to be in gold, silver, platinum, and…

States forget how to cut budgets but love to raise taxes

Washington Times:

Governors want to levy higher taxes next year on clothes, soft drinks, gasoline, auto licenses and other items that likely will hit low- and middle-income families struggling to make ends meet in a deepening recession the hardest.

Officials say…

FED has a dilemma

Hussman:

On Tuesday, the Federal Reserve took the somewhat expected but extreme step "to establish a target range for the federal funds rate of 0 to 1/4 percent." Included in its policy statement was an additional bit – “The Committee is…

Milton Friedman on inflation

“Inflation is always and everywhere a monetary phenomenon” to paraphrase Milton Friedman. The government can and will print enough money to instigate an inflation.

John Polomny
The Real Deal

America “should declare bankruptcy”

CNBC:

When the Federal Reserve policymakers decide on interest rates Tuesday, investors will probably look one step beyond their decision, to gauge how much money will the Fed be willing to print once it is out of rate ammunition.

Rates won’t likely…