Normally the jobs number this month would be considered just economic "white noise" ....
But if you consider the amount of money spent on stimulus...its not good at all.
But it only shows how dire the situation was when Obama took over... The jury is still out on whether this can be turned around... The problem is that Keynesian stimulus always assumed that the economy had a domestic production part...and a consumption part that could be stimulated until the cyclic excesses were absorbed....
What the US has now is a consumption part...a bubble part (which we live off of...) And all the factories are in China...
So we are really just stimulating production in China...with the stimulus
Keynes could never have anticipated that ANY ECONOMY would deliberately destroy it's productive base as the US and Wall Street did over the last 20 years...just to break the unions and get cheap labor.
The gold standard would have slapped than notion down immediately!
Yes I like the cheap stuff from China...but not if it means the US economy will never recover...
Keynesian Stimulus is like putting air in a leaking tire... If it's a slow leak (ie a cyclical downturn)...it works fine...
If the tire is totally blown out...and ripped...you're wasting your time "putting air" into it...
My hunch is that the US economy is blown out...not just in need of a little "air" from the FED...
