The Chinese Big Bang Theory

Considering that China has been the leading indicator for everything economic in the past decade, seeing them unload hundreds of billions on a mass stimulus package is kind of unsettling. Mainly because no other country has the reserves to match such an outlay, which China clearly feels is what's needed to sustain growth.

Faced with the prospect of zero export growth, closing factories and mass layoffs, China joined moves by governments around the world to cushion the blow of the global slowdown with the announcement of the $586 billion package.

Stock markets in Japan, Hong Kong and mainland China soared in response.

The plan calls for higher spending on roads, airports and other infrastructure, tax deductions for exporters and more aid to the poor and farmers. Spending on health and education will increase, as well as on environmental protection and high technology.

''We must implement the measures to ensure a fast and stable economic development,'' Premier Wen Jiabao said at a meeting of government leaders, according to a report read out on the state television. ''They are not only the needs of the development of ourselves, but also our biggest contribution to the world.''

It certainly does help this country when China is strong, in light of the fact that our survival is predicated on them continuing to buy our Treasury notes. But I'm pretty sure a stimulus here will be significantly smaller than China's which is the equivalent of of $2.4 trillion US dollars. Half-measures are going to be harshly judged, so it's time to step up. I'm not saying we have to drop a couple trillion, but we need to make investments at a size comparable to the problem.