The technical arguments against spending are obvious and reasonable under normal circumstances. However these are anything but normal times. Stewart takes a moment to address why threading this needle has a better chance of working at this point in time than other options (such as Hooverism).
The thrust of his arguments are this:
- The US Dollar has, after a 20% run up in recent months, room to give up value in the wake of new spending;
- 10-Year Treasury interest rates are at multi-year lows, indicating a continued strong demand for US debt; and
- Nothing is certain and there are no sure-fire solutions