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“Spenders of Last Resort”

Browsing Northern Trust’s “Perspectives” newsletter I cam across this turn of the phrase. Since our economy is so dependent upon consumer spending, and since fear and the liquidity crisis have dried that up:

This leaves central banks and governments as the spenders of  last resort. Fortunately, these institutions are adapting to this role and demonstrating a willingness to aggressively spend and experiment with policy initiatives, hopefully where appropriate. Recent moves by the Federal Reserve are the epitome of such reactions.

So now central banks and governments are going to be major players in the economy, and own–entirely or in part–large companies, such as GM, Ford and Chrysler. But as a new administration takes the stage with great plans for massive public works programs, and expansion of the already-gargantuan bailouts, think about this quote to put it in perspective: “Fascism should more properly be called corporatism, since it is the merger of state and corporate power”– Benito Mussolini

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