Job creation

  Six hundred billion dollars from QE2, if went strictly to job creation should produce 15 million jobs for just one year if each job paid 40,000 dollars a year. These 15 million people would not even need to show up to work. The government could just mail 40,000 dollars to them for just staying at home. But the assumption is that they should actually show up to work for the entire year to be entitled to this 600 billion.

 However, unless its war spending or some other government spending program. money is rarely distributed from the state to the citizenry. The money 99 percent of the time is given to the nation's financial sectors. These men decide how the money will be distributed thus producing private sector jobs. Thus as a result, there probably wont be much in job creation given that the financial sector does not appear to be willing to do much with that money.  Some might argue this is bias between the elites who are simply filling up their own pockets. Perhaps. But the other reason is because this is typically how the private sector works.

 If an entrepreneur wishes to start a business and hire 20 people, he takes a loan from his bank. If a consumer wishes to purchase a product or service from that business, he takes a loan from his bank. Thus why banks typically receive this money. Furthermore, if the banks were willing to fully leverage the 600 billion awarded to them, they could extend that 600 billion into an additional 5.4 trillion through fractional reserve lending practices.

 Banks are responsible for almost all private sector projects from local business support to multinational corporate financing.

Exxon seeks financier for the LNG project

Mon Apr 20, 2009 12:00pm

Exxon Mobil Limited and its partners are reportedly seeking US$9-billion more than K26-billion in debt financing for the PNG liquefied natural gas project.

They are looking at raising the funds from a combination of loans from export credit agencies, bonds and commercial bank loans to supplement more than K8-billion loan from Exxon itself.

  Without the state and private banks helping to produce money out of thin air. Many projects from local to national would simply be put on hold.

  However the mood is just terribly sour, so I could not expect to see the financial sector willing to do much with that 600 billion. Job creation is by no means hard. It is quite a simple concept. But the us federal system tries not to operate through dictate. It nudges and influences most of the time. It is not like China, where its lend or die. Or even, if you lend, I will kill you. The Chinese Central Government can force its banks like ICBC, CBC, and BOC to lend or not lend by fear and persuasion. Because these are actually state owned banks.