Not necessarily trying to defend the 800 Billion stimulus package, but you do realize the government understands the the problem with creating money. Then why are they doing this? The purpose of the 800 billion stimulus package isn't to just fix the economy and go on with our lives. It's more of an ad hoc to the problem and they know this which is exactly why they did this. The stimulus package is meant to buy more time for them so that they can come up with a more effective plan for the long term. Creating money does in fact de-value the dollar but this stimulus package is literally just a dent in regards to inflation. I don't expect future stimulus packages. Maybe one more but other than that I expect them to find results with the time that they just bought themselves.

You see, if we didn't "kick start" the economy then it would all come crumbling down very fast and very hard. The stimulus package is artificially propping up the industries which of course everyone knows isn't good as a long term solution but it does allow the crash to be significantly more pleasant than simply letting it all fall down. Even though we are de-valuing the dollar the de-value isn't as significant of a change as it would be if the economy just completely collapsed. Now even with the stimulus package we're going to crash but it will be much more pleasant.

What Obama is talking about now is increasing the taxes and looking at the budget to see what cut backs need to be made. Right now he's considering international cut backs which is a great idea but he's also looking into the national system and finding out where the most money is being wasted. Increasing taxes while making cut backs that is the least damaging to citizens is the best way to come crashing. So as absurd as a stimulus package may seem its much better than the alternative of letting everything crash while trying to manage raising taxes and decreasing spending. The government is establishing breathing room for themselves.

Kind of sucks being in charge sometimes....