Will Federal fiscal and monetary inflationary stimulus get more massive?
*Financial Times, by Andrew Ward, January 8, 2009
“Obama to warn economy will worsen
Barack Obama will on Thursday warn that the economy could become ‘dramatically worse’ if Congress fails to act quickly on his plans for a massive fiscal stimulus.
In his most high profile speech since the election, the president-elect will say that unemployment threatens to reach double digits and the recession ‘could linger for years’ without urgent intervention.
‘I don’t believe it’s too late to change course, but it will be if we don’t take dramatic action as soon as possible,’ he said, in remarks prepared for delivery at George Mason University near Washington.
Mr Obama will claim that America could lose ‘a generation of potential and promise’ as young Americans are forced to forgo college and job training.
‘Our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world,’ he is expected to say. ‘In short, a bad situation could become dramatically worse.’
The grim speech marked the start of what is expected to be an aggressive public ‘sales pitch’ for the stimulus plan, amid widespread nervousness about the soaring deficit and expanding government.”
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