The Federal Reserve Bank is going to buy many of the Treasury bonds to be issued in the coming months. Good idea. Now the government will be paying the interest to itself. This is the same as zero-interest public debt that I have been advocating.
Now if the Congress would vote a healthy increase in stimulus spending and finance it this way, we might see the end of the recession.
Larry Beinhart writing in The Huffington Post shows that a big chunk of the stimulus went for tax breaks (a poor way to increase jobs he says, especially breaks for the rich). http://www.huffingtonpost.com/larry-beinhart/why-the-stimulus-package_b_781206.html?view=print