Brain
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Joined: 2/14/2007
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Thank you very much Republicans for demanding the stimulus be reduced when it was not enough and your disingenuous concern for rising deficits.
And of course in Canada we have our own prestigious economist conservative Prime Minister Harpo who believes a second stimulus is not necessary and has encouraged world leaders to take action to cut their deficit spending at this appropriate time. Don’t ya just love these conservatives with their sexy ideology and they’re so helpful!
Bank of Montreal urges more stimulus funding
-- Global recovery losing steam, especially in U.S. -- Threat of double-dip recession looms
OTTAWA -- With fears of a double-dip recession rising, one of Canada's major banks has called for a second round of stimulus in troubled economies -- and for Canadian governments not to be so quick to embrace restraint.
http://www.winnipegfreepress.com/business/bank-urges-more-stimulus-funding-100606314.html
BMO warns against deficit cutting
http://www.cbc.ca/money/story/2010/08/12/bmo-deficit-cutting-stimulus.html
Bank of Montreal – keep the stimulus dollars flowing
U.S. economic momentum is slowing, raising the risk that the Fed might have to take another stab at non-conventional easing. The options Chairman Bernanke cites include employing a more precise definition of “extended period” (the length of time the policy rate is expected to remain at “exceptionally low” levels), reinvesting maturing MBS and other agencies (currently they are being allowed to run off), and resuming net purchases of these securities and Treasuries (quantitative easing).
However, in July’s congressional testimony related to the semi-annual monetary policy report, Bernanke indicated that the Fed would ease further only begrudgingly, which, in our judgement, is at the juncture when the Fed sees the whites of deflation’s eyes. We look for economic growth to slow to the low-2% range during the second half of this year, down from the 3.2% pace registered since positive growth resumed in 2009Q3, as the extra lift from inventory rebuilding and tax incentives fade.
While such a pace is not a problem per se (it’s not that far below potential growth, if at all), it’s coming with significant disinflationary slack still lurking in the economy. The slack will likely cause core inflation to fall further; we look for it to bottom a couple tenths below 1% through the turn of the year. Early next year, as businesses begin deploying their record cash positions by picking up their hiring pace, growth should strengthen and disinflation trends should stabilize.
http://bmonesbittburns.com/economics/rates/20100804/rates.pdf
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Bank of Montreal urges more stimulus funding - 
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