Wednesday, February 26, 2014

Another "Blame the Fed" article in the Atlantic

This chart would be me eye balling a linear best fit of real growth since 1980. The numbers on the X axis are the number of quarters, and the Y axis is percent change in real gdp from the previous year. Recessions are  planned and executed by the political parties to match the presidential cycle. We call this the Secstags, an expected reduction in real growth.

So, what did the Fed do that was so horrible this time around that it hasn't done in any of the previous recessions? I mean, it was Clinton's eight years which broke the rule of slower growth, but otherwise this is what we would expect from an increasingly undemocratic and skewed government channel.

I did not read the Matthew O'Brien article about the minutiae of Fed decisions during the 2007 to 2009 period. Why bother. Was the Fed supposed to do something about the last 30 years of crazed government politicians?

If Matthew O'Brien thinks central banking is nuts, then say so; I happen to agree that we are no longer a sound monetary zone.

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