iow, the economy sucks because nobody's investing and everyone's just sitting on cash. In the six decades of data before the '08 election, credit growth averaged 9% yearly, but since then it's been flat at 2% --about even w/ inflation. This is the elephant in the room, what little money supply growth we've seen has been because of the Fed's T-bill purchases and money velocity has tanked.
Central bankers are hopeful that fiscal policy (which includes deficit spending and/or tax reform) may ultimately lead to higher investment, but to date there has been little progress,
Everyone already's saying this, but the problem here is that pundits are telling politicians that it's got to be in the form of higher taxes and bigger govt. What's really needed is an end of Washington's war on private property.
The U.S. and global economy ultimately cannot be safely delevered with artificially low interest rates, unless they lead to higher levels of productive investment.
--which we're never going to see as long as investors are under siege.
“In the six decades of data before the ‘08 election, credit growth averaged 9% yearly, but since then it’s been flat at 2%”
Do you think any of that is due to higher reserve requirements imposed on the banks?
Money velocity has tanked because there are 92 million Americans not working or underemployed for whatever reason.
The turn to the left culturally eats at the work ethic and the American Spirit (Can do, why if I get free money?). The economic left turn hits the individual citizen's and small businessman's pocket book and bottom line, respectively.
“the economy sucks because nobody’s investing and everyone’s just sitting on cash”
Well, duuuuuhh! No one in their right mind is going to invest in economic growth in the U.S. as long as Marxists are in charge of the economy and any profits resulting from risk-taking are simply going to be stolen and “redistributed”.
