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Yes, but this would help world demand.
But it’s throwing away a major opportunity to increase our standard of living by supporting domestic demand unilaterally and letting the rest of the world rely on exports to us:
Interesting news from Treasury:
- Propose to increase IMF standy funds from $50 Billion to $500 Billion (major positive for emerging market credit).
- Calling for all G20 countries to spend 2% of GDP in stimulus in both 2009 and 2010.
- Calling for some kind of global trade finance initiative.