CONSIDERING THE MASSIVE STRUCTURAL PROBLEMS IN THE US ECONOMY... I REALLY DON'T SEE HOW THE CURRENT RECESSION "ENDS"....
THIS RECESSION WAS NOT CYCLICAL...IT WAS NOT CAUSED BECAUSE THE FED "TOOK THE PUNCH BOWL AWAY".... INDEED JUST THE OPPOSITE...
IT WAS CAUSED BY THE FED TRYING TO "JUICE" THE ECONOMY BEYOND ALL REASON...AND EVENTUALLY LAPSING INTO "BUBBLENOMICS"....BUBBLES FORVER...WAS THE NAME OF THE FED GAME FOR ABOUT THE LAST 15 YEARS...!
BUT HERE IS THE TOXIC PART:
WHILE THE FED WAS BUBBLING...AND WALL STREET WAS LOOTING...
THE REAL ECONOMY IN THE US WAS BEING DISASSEMBLED...AND SHIPPED OFF SHORE...MOSTLY TO CHINA AND INDIA...BUT ALSO TO MEXICO AND OTHER PARTS OF ASIA...
THIS IS SIMPLY UNDENIABLE...
SO NOW THE FED IS TRYING TO USE "NORMAL" KEYNESIAN "TOOLS" AND OTHODOXY TO "JUMP START" AN ECONOMY THAT IS SIMPLY A SHELL.... IT'S HOLLOW...THERE IS NOTHING TO JUMP START...
OK...YOU CAN GIVE CONSUMERS FREE MONEY AND TELL THEM TO SPEND IT...(ON GOODS MADE IN CHINA)...
BUT WHEN THAT IS OVER...IT'S BACK INTO THE SOUP....
AMERICAN CONSUMPTION WITHOUT PRODUCTION IS SIMPLY DRAINING THE BLOOD FROM THE ECONOMY EVERY MONTH...EVERY YEAR...
HENCE THIS BLOODLESS "ZOMBIE ECONOMY" WE HAVE TODAY...
ANOTHER SCARY PART IS THAT THE FED AND WASHINGTON ARE ACTING "AS IF" THERE WAS NOTHING WRONG...
AND THAT THIS IS JUST ANOTHER CYCLICAL RECESSION...SAME OLD SAME OLD...
WELL...IT'S NOT...
AND THAT IS THE LAST SCARY PART...
IF YOU DON'T EVEN KNOW THE QUESTION...?
HOW CAN YOU EVER GET THE RIGHT ANSWER...?
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