I would agree with Paul Krugman once in a while, except for the fact that it is so much Fun disagreeing with him. Paul is looking to create 8.5 million new Jobs; not even God could do this, not in 7 Days, not in 7 years. There are saturation limits to almost every economic endeavor, and the Unemployment data simply reflects We have reached a saturation point in the labor market. This will alter drastically with the retirement of the Baby Boomers, but it will still result in a low Employment number for the current administration. We have an overall reduced Consumption level, a reduced Import quantity, a smaller Export level, and a Pile-up of experienced Technicians who insist on a higher Wage level than Business is currently ready to Pay. We have to face the issue of whether We want to go back to the fraudulent flow of Cash which brought the Financial Crisis, or exist with a lower GDP; the Reader should recognize that the Unemployment numbers only express a Withdrawal from such financing. Paul would replace it with Government Spending, itself just as delusional and fraudulent; simply utilizing a new group of Investors–this time mainly foreign central banks who can ill-afford a loss of capital outflow with no Return. Further Government Spending will make the United States responsible for suppression of the World economy.
Here is an article which explains to great degree How We arrived at the financial crisis in the first place. The Reader might want to play a Game, and I suggest that Everyone read this article replacing the word ‘Bank’, substituting the word ‘Government’. Does the Game seem stupid? It will not in the months ahead! Brokers want easing of regulation for these brokered Deposits, which means introducing more Wildcatting into the matrix. It will always be a battle between Those who wanted rapid Growth, and Those who insist on something left at the end of the Day. I belong to the later Camp, if any of you wonder at my own allegiance.
I am going to quit Now, because I have criticized Everyone’s opinion except my own; and Someone told me once that one should not put yourself down, there being multitudes who would enjoy doing that for you. I wish you All well, and happy 4th of July. Fire off a firecracker for me, just not under my lawn chair. lgl