Jun 03

Apparently the US consumer drove GDP up last month. Now this will no doubt be seen as a great victory by the Keynesians and their economic models and maybe even a good sign by the Administration.

With real wages still falling all that could have caused this was more debt. This may reflect confidence of the US consumer but falling wages and rising debt are hardly more than reflating the debt. Junk bond debt in the USA is paying less than 5% as people grasp for a return.

All that seems to be happening is that the 2008 bubble pop is being repeated. Foodstamp programs are not getting smaller. People are not getting richer, indeed more in debt.

I see no genuine recovery here.

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May 09

Interesting how Germany deals with the Dutch given the shellacking the southern Europeans and Ireland got. Yes they’ve had cheap money and a housing bubble and now have debt!

The fact is, whatever Keynesian economists say, QE and or low interest rates = bubbles = zombie economies = gutless short term politicians who won’t take the hit. Continue reading »

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