Debts that can't be paid, won't be

This summarizes why I think Obama's "stimulus" is a sham. At best, all it will do is postpone the inevitable economic contraction.

clipped from www.counterpunch.org The U.S. economy cannot “inflate its way out of debt,” because this would collapse the dollar and end its dreams of global empire by forcing foreign countries to go their own way. There is too little manufacturing to make the economy more “competitive,” given its high housing costs, transportation, debt and tax overhead. The aim is to re-inflate property markets to enable owners to pay the banks, not to help the public sector break even. One would think that politicians would be willing to do the math and realize that debts that can’t be paid, won’t be. But the debts are being kept on the books, continuing to extract interest to pay the creditors that have made the bad loans. The resulting debt deflation threatens to keep the economy in depression until a radical shift in policy occurs – a shift to save the “real” economy, not just the financial sector and the wealthiest 10 per cent of American families.