Tuesday, February 11, 2014

Who is the Fed really stimulating?

Take a look. In every contraction, inflation still high, unemployment low, but deficits rising. What does the Fed do? They lower rates to help Congress pay its bills.  The Fed's job is to help Congress cause recessions a little sooner and make them last a little longer. It is stimulus only in the sense that we see government volatility sooner than we would otherwise.

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