Jul
05

Monetary Medicine

Things can’t possibly be good when yesterday, in less than an hour, the ECB, The Bank of China, and The Bank of England all offered monetary medicine to the weakening global economy. Problem is, easier monetary policy won’t help much. What’s needed is stimulative fiscal policy. Separately, while US labor market conditions are worse than in Q1, they’re not terrible. Tomorrow’s employment report will show less than 125,000 new jobs.

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  1. Adina Atwood says:

    I would love to hear your thoughts on what constitutes a “stimulative fiscal policy”. I heard Paul Krugman talk about more government spending, without regard to the growing deficit this country is facing. I do understand that most progressives believe that FDR’s policies ended the depression, although more conservative economists believe those same policies extended the depression.

    It is difficult for me to believe that the more you go into debt, the better off financially you are. I am not the expert, though. I just know it doesn’t work in personal households!

    • Elliot says:

      I wouold be happy to chat with you about stimulative fiscal policy. Delighted to know you are interested.

      • Adina Atwood says:

        Let me know when, I will be available. I heard Obama today after the numbers were posted, 80,000 jobs I believe were added. He just said that we need to “be patient” and keep pressing forward, and it would be OK. He was really ignoring the economy and was touting his Health Care “success” . I frankly was surprised when the stock market didn’t drop more sharply when the Supreme Court didn’t throw the whole mess out under the Commerce Clause, but “invented” the argument that it was a tax, therefore within the purview of Congress, although it was not a tax for the purposes of the anti-Injunction act (the act prohibits standing to challenge a tax until the tax has actually been assessed and paid) There is something very “1984”ish when politicians can make us believe that things are still the same, if not better, because they keep re-inventing the past.

        How can this economy get better if the government continues to impose more regulation, higher taxes, and more uncertainty on business owners. Do they even know who creates jobs???

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