A gamma-shaped recovery may look fairly unattractive, but it's a lot better than the alternative of rapid recovery followed by blowout. It could also be engineered so that the gamma-ization of 5% growth into 1.5% growth did not become apparent until after November's midterm elections, thus allowing the Obama administration to present simple folk in the electorate with the impression of a vigorous and sustainable recovery.
I am ashamed to admit that I did not visit the Mises Collection again on my recent visit to Hillsdale. I thought it was too cold to walk across campus.
Somehow, somewhere in there, there's an analogy for the coming crisis...Simple folk happily staying warm and snug, never bothering to educate themselves.
Have a good day!
I am sure that this situation is much worse than the last one (in 2002) . But we can still look back at the crash of 2007-2009. It was only slow economic growth and fear of banks closing that kept the dollar from crashing the past year or so. But anything that looks like a recovery will cause increases in food, energy and raw material prices to skyrocket threatening the recovery (ala 2007-2008.) Raising interest rates by pulling back money will cause a crash too.
Peter Schiff was right, our elected (esp Obama) have not found the magic free lunch they promised us. But Obama just wants to get through the November elections as with that text you posted.