Saturday, November 21, 2015

What is the cause of the liquidity trap?

Inflation, the red line, always precedes the recessions, grey bars.  And we can see the ten year rate drop after each recession until the rate has reached a limit, the transaction cost of paper money.

So, whatever nut who thinks inflation cures the liquidity trap has it backwards. Inflation precedes the recessions, and is generally caused my badly coordinated spending in DC.  The proof is in the phase of the recessions, mostly occurring at the transition points between presidents.

There is no avoiding the evidence, DC is the likely cause of the sec stags.

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