Let's try stimulus and recovery, a fun topic

Red is stimulus spending, blue is total factor productivity. We have two measurements on TFP, one right at the start of stimulus, one at the stimulus peak whereupon we see it slope down, not up.

Productivity took a rise up before the stimulus and the next time we looked, right at stimulus peak, it dropped its rate.

Now we have GINI, showing failure of the stimulus. We have the double dip in all the large economies, right at the peak, and Illinois was hit severely. The second dip matching precisely with oil prices driven by mis-sallocation.  The error? Trying to drive into the network where there were no free connection. You shut down the Illinois crossroads by shipping gas where it less utility.

Let's look at other delays. Two years for the California flounder.  Pension problems in Illinois, screwed up medical regulations in New York.  Who was the shock absorber? Not the Swamp, but Texas and the frackers.

We have a moment of good growth now, after QE, after the sequester, after the tax deal, after the restructuring of the Flounder.

And the nonsense about the liquidity trap being six years old, for years we have stared at graphs showing all rates have been dropping since inflation tamed in 1985.

Low inflation, right now, high growth and waddya know, interest costs are only frightening at 11%, for Congress that is good.

This economy prices very well, and it has some very smart expectations operators.

It looks a lot like Bill Clinton time to me.