“...drive up nominal GDP to a trend line growth rate of 5pc, doing so transparently so that markets know exactly what the objective is and when the stimulus will be unwound.
I have no doubt that this would bring about a full recovery very fast if conducted with enough panache, but is it possible to marshal political consent for such revolutionary action?
The Tea Party Congress, like Europe’s bourgeousie, would rather wallow in liquidation, Puritan cleansing, and mass default than tolerate the possibility of a solution. “
No, ‘faux growth’ from the Fed won’t do it.
Now real 5% growth- say from regulatory and tax cutting- is a cure. But where’s the political support for that except the Tea Party he despises?
Perhaps the "independent Fed" is fed up with Obamanomics and will hold the status quo (lousy economy) 'til November thus guaranteeing a government that will "right our economic ship"?
yitbos