Saturday, April 30, 2011

Media gets close to admitting essence of national banking

President Barack Obama promised strong federal aid on Friday when he visited Alabama to see for himself the havoc wrought by the violent storms, which shut or damaged businesses from coal plants to jeans manufacturers.

But many of the damaged businesses were insured so when payments kick in it will spark a mini boom that will help state finances, not least by providing employment, analysts said.

"Natural disasters often bring economic positives," said Richard Lehmann, editor of the Distressed Debt Securities newsletter.

"If only we could create money out of thin air for big, expensive projects that would really help the economy and pay for themselves, instead of just for worthless things like banker's gambling IOUs. Imagine the boom we'd get as a result. Too bad nobody's come up with a way to do that."