Money mystifies Me

I will tell my Readers to consider this Post, and even study the graphs. I confess that I have a real problem with Stimulus overall. Stimulus, by its very nature, must be significantly effective as to swing the entire economy; when One hopes to draw the economy out of a Recession. Discussion of Stimulus in the context of the 1930s economies implies far less inertial weight to swinging the economy, as does shaking an economy many times that size. Stimulus could well be a economic policy which has reached its limits. Like Karl Smith, I really doubt a Zero Interest rate when Corporations are not spending, and Banks are not lending. I hate to pick on a particular, but the rise in Stocks could honestly express the real Inflation rate, and nothing else. I once long ago argued with a group of friends on the value of outsourcing any Government program established to promote Employment. Outsourcing leads to lobbyist demands to continue funding after the need for extra employment has passed, and the Government could layoff Workers at a proscribed rate; economically justifying the reduction. There is the added problem of Outsourcing costing more than in-house cheap Labor rates, with a Profit for the outsourcing management. I am terribly afraid that this Dog does not Bark, and even does not Hunt. The Fed cannot spread Cash into the economy without having real effect on the Pricing. The hesitation in Market Prices immediately after Fed movement on Cash release consisted of Everyone adopting a ‘Wait and See’ attitude about Price movement, before releasing any valuable Commodity in possession; this means that there was not that much for Sale, while Buyers awaited knowledge of how rising potential Commodity Pricing could affect their Sales structure. Remember this comes from a man who drove a Ford for ten years with a poor Heater in cold Weather; never have bought any Ford stock; I might have missed a real opportunity since the last Recession. I will now delve into Rachael Carson’s ‘Silent Spring’ with the ritual of getting a Banker to admit anything on the Record. We conceive that the Fed adopted the same casual attitude of debt acceptance that the Banks who were borrowing previously had to abandon. This poses a Question for myself: Under what Conditions could a central banking system fold up? I ask ths because Everyone said the big Investment banks were too big to fail. What happens when a few central banks have to admit that they have no real assets, only default Paper? I never claimed to be a Banker, but what are the Options from there? lgl