Thursday, July 08, 2010

Paying Attention?

I really don’t think I need to say anything. Good luck figuring out the “English”. I think the message is clear though.

With the US trapped in depression, this really is starting to feel like 1932

”Let us be honest. The US is still trapped in depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP”

”On Friday, Jacques Cailloux from RBS put out a "double-dip alert" for Europe. "The risk is rising fast. Absent an effective policy intervention to tackle the debt crisis on the periphery over coming months, the European economy will double dip in 2011," he said.”

”Last week the Bank for International Settlements called for combined fiscal and monetary tightening, lending its great authority to the forces of debt-deflation and mass unemployment. If even the BIS has lost the plot, God help us.”

Indeed. If you don’t think the Federal Government should pull out all the stops -- come up with a stimulus package as big as we dare -- then you had better be ready for some pain. A lot of pain. As if 14 million unemployed wasn’t enough pain.

Don Brown
July 8, 2010

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