How Stimulated Are You?

WASHINGTON (Dow Jones) -- Congress on Thursday passed a $152 billion economic stimulus package designed to provide a timely, targeted and temporary boost to the flagging U.S. economy. The plan would give tax rebates of up to $1,200 for households, with $300 more for each child. The full rebates would be sent to individuals with incomes under $75,000 and to families with incomes under $150,000, including seniors and disabled veterans. The rebate would be phased out for those earning more. Rebate checks would likely be mailed beginning in May. Taxpayers will not have to apply for the rebate; it would come automatically based on their 2007 tax return.

I'm trying to understand this stimulus package that Congress just approved. What exactly are we trying to accomplish with it? Don't get me wrong, I'd gladly take the money. But it seems to me like this is a very short sighted move.

Are They Really Saving People With It?
In the grand scheme of things, does it make that big of a difference? For those in bad loans, how long can this really postpone the inevitable foreclosure? Is someone who gets themselves into these bad predicaments really going to responsibly utilize the rebate? How much time could this possibly buy us?

Do They Want Us To Spend It?
So following that line of thought, maybe it's because they want us to spend the money, because that will get the economy out of trouble. Hmm okay let me think about that. Someone tells you they are giving you money because the economy isn't doing well lately. Is my first instinct to spend it or save it?

Do They Want Us To Save It?
Okay, I hope your instinct would be to save it. (With us Americans, that seems to be debatable these days, but I digress.) So it seems as if the likely outcome is that people are going to save the money and not spend it.

Where is this money coming from? Oh right, we're creating money out of thin air and distributing it to the masses to not really fix the current problems. This is to enable the masses to put it in the bank, which is giving less interest by the day and could possibly go bankrupt. Not to mention more dollars in circulation lessens the value of those already in the system. Meanwhile, the Fed vigilantly "remains on inflation watch" [ha ha].

Conclusion
The stimulus package is just a marketing spin by the government to inject inflation to avoid recession. Gold ETF's are looking better and better by the day.

I've been really trying to analyze the performance of gold in recession/depression and the information I saw from many other sites/blogs is pretty inconclusive. I wouldn't be shocked at all if the price of gold doubled in the next few years though just because of the herd mentality. I just need to make sure I have an exit point so this isn't the NEXT bubble I follow along with.