Recovery of a sense of humor must always be a prerequisite of a economic recovery. It is Why I present this Mess for the entertainment of my Readership. I tend to agree with Tim Duy on the Recovery, and I am really tired of Green Shoots. Bernanke will probably go down in history as the ‘Green Shoot’ guy, and curse the day he ever spoke to Congress. I can, as a old farmer, state that the economic performance as yet seen is the poorest Planting season ever witnessed. We always insisted on a Germination rate of better than 90%. Ben has a Germination rate of approximately 30%, and Everyone acclaims him as a Master Gardener. I would beg to differ, but I have been as equally wrong as He over this economy which no one seems to understand. I provide this Post to further the cause of economic humor.
A sound, staid evaluation of the current economy can perhaps be glimpsed by this reference, which also might suggest that Monetary policy itself might be the Culprit, so don’t pick on the Butler. I am thinking of the possibility that Monetary policy actually only places delays in the Road, refusing financial and production outcomes which would actually clear the production process. If this establishes as the Case at any Point, then Monetary policy will actually lengthen the period of Recession and failure of sharp Recovery. Economic failure and Bankruptcy as excellent methodology for opening up the field for new talent in economic leadership. I fear the bureaucracy of financial leadership even worse than the systemic idiocy of entrenched labor.
Read this commentary from Christina Romer, and ask whether Monetary policy can ever affect production in any manner than through the creation of asset bubbles. The Answer is that it is doubtful any Monetary policy can do anything, except fuel asset bubbles. Adding funds to the economy simply provides a higher Price schedule to existing assets (Inflation), and only ensures a higher financial rating for production, even if actual production declines. I doubt this is an ideal Solution for the ills of the economy. lgl
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