Central Bankers are in a race against time to inspire fiscal confidence and resumption of normal economic activity. Politicians cannot sit back doing nothing while letting companies fail, voters lose jobs and economies collapse, but you cannot spend on borrowing forever as you have to earn to pay off your debt.
Henry Morganthau Jr. (FDR’s US Treasury Secretary) said in 1939 of the failed fiscal stimulus packages during the Great Depression that "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ...I say after eight years of this Administration we have just as much employment as when we started ...and an enormous debt to boot".
History shows that borrowing more to solve a debt crisis is a high risk “Voodoo Economics” strategy that often fails.