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Indeed. Fiscal policy is in the hands of Congress, and once Republican took that over in 2011, the Fed simply lost its fiscal policy partner on Capitol Hill and had to support recovery on its own. QE is not really a powerful stimulus tool, but when that's all you have, that's all you'll get.
QE programs were NEVER designed to help the economy or to spur economic growth. It was designed to prop up and save Wall Street Banks and Wall Street Crooks. After all those QE programs our GDP growth was 0.7% last quarter. So much about QE.
We are witnessing in Washington DC a tragedy of epic proportions: the death of our democracy. We have a president who is at war with our elitist intelligence community and government rulers. Since the first day of his presidency there has been a brutal struggle by the Washington bureaucracy (that is a nice word for it) to unseat a crude, unpolished man who makes no secret of his disgust with the Washington elite. The whole "Russian File" is, in my view, a pretext for an IMPEACHMENT or an ASSASSINATION. The Washginton Establishment wants their government back. They think they own America. They are willing to tolerate our democracy as long as we don't get in their way. Trump is hostile to the ways of Washington -- and he enjoys breaking their rules, rules he largely does not recognize. The Democrats are foaming at the mouth to get their impeachment. Russian HACKING is a ruse - look how quickly the French "Moderates" picked up on it -by "moderates" I mean those who do not want to change the system that gives them wealth and social status. The cowardly Republics are weak-kneed and refuse to back their man. They are looking for a way out. Maybe Pence would give them a more politically-correct leader, acceptable to both parties. A week ago the Democrats wanted Comey out because he was their selected scapegoat for the Hillary Clinton catastrophe; a week later he is their martyr, and they sense a chance to overthrow Trump with a Russian anchor tied to his leg.
The tragedy is that they are saboutaging OUR democracy. If we lose it we won't get it back. Remember, Democracy means that your adversary, the stupid brother, the lazy brother, the uncivil brother, the uncultured brother, sometimes gets to run the country. That is what democracy is - sharing power with your adversary, your shadow, your worst half. What's the alternative? Civil war. Study history and learn.
In a democracy, both sides get their time to govern. Democracies are the best forms of government because they AVOID CIVIL WARS. Let's not forget this.
In truth both parties, both ideologies, are part right and part wrong. You get both the good and the bad with both parties. The idea that one side is moral and the other is immoral is an illusion. Each of these different ideologies bears a different perspective because one perspective is through they eyes of YOUTH and the other is through the eyes of AGE. Youth and Age see different realities. And they are both right at the same time, even though they are in disagreement.
Indeed. Fiscal policy is in the hands of Congress, and once Republican took that over in 2011, the Fed simply lost its fiscal policy partner on Capitol Hill and had to support recovery on its own. QE is not really a powerful stimulus tool, but when that's all you have, that's all you'll get.
One huge stimulus that is waiting in the wings is a tax moratorium on offshore profits, which are over $2 trillion. Bring that money back into the US and it's 4 or 5 years worth of US trade deficit. That would kick asset inflation back into high gear, and might even move consumer inflation off of dead center. As you say though, it's up to congress. Don't hold your breath waiting for Congress to do anything productive.
1) They have a special interest to have people think that the economy is doing well
or
2) They are living in a minority part of the country that is doing well.
It's not the majority of the country.
There are still some economically distressed areas, but there alway have been. Anyone who thinks otherwise needs to rent a "Coal Miner's Daughter" DVD. The east and west coasts are doing very well economically, as are Chicago and the whole state of Texas. Dallas-Ft. Worth is building light rail to handle the commuter overload, and East Texas is turning into one huge housing development. You don't get much boomier than that.
One huge stimulus that is waiting in the wings is a tax moratorium on offshore profits, which are over $2 trillion. Bring that money back into the US and it's 4 or 5 years worth of US trade deficit. That would kick asset inflation back into high gear, and might even move consumer inflation off of dead center. As you say though, it's up to congress. Don't hold your breath waiting for Congress to do anything productive.
Eh. A lot of offshore dollars are already factored into asset prices.
A moratorium on taxing them would be beneficial in raising tax revenue. That money would be used for stock buybacks or dividends. Dividends would be taxed. Those dividends would then be spent causing a couple more levels of additional taxes.
I'd overall just drop foreign profit taxes to 15% or so. 15% of something is better than nothing.
There's probably stuff, but ALL of it would bite us in the butt worse down the line if they tried it. I think the best thing they could do, which they won't unless we make them, is let it crash and fix itself.
The Paulistas always seem to call for the tearing down of "malinvestment". In their odd world, "white knights" magically appear to make everything better.
There's probably stuff, but ALL of it would bite us in the butt worse down the line if they tried it. I think the best thing they could do, which they won't unless we make them, is let it crash and fix itself.
Yes, and they could have been that in 2002 and 2009. But because Americans are no longer conditioned for pain, they can't let that happen.
1) They have a special interest to have people think that the economy is doing well
or
2) They are living in a minority part of the country that is doing well.
It's not the majority of the country.
If you mean a majority of the land mass, yes. Not the majority of the country where the people live.
Urban areas with diverse economies are doing as well as they're ever going to right now. My state has 3.8% unemployment... that is INSANEly good, the lowest level for April since the state kept records on it starting in 1976.
If you live in a small/medium sized town that's isolated from major metros, was at one time dependent on some sort of extractive or production-based industry... yes, it's not doing well. In my state (as well as the country) - that affects about 25-30% of the population but 70% of the land area.
Then there are some parts of the country that have NEVER done particularly well economically. Ie: the broad swath of Appalachia from northeast Texas to West Virginia... the upper south...those areas were ALWAYS poor.
Yes, and they could have been that in 2002 and 2009. But because Americans are no longer conditioned for pain, they can't let that happen.
PAIN = BAD. Sadomasochism not very good either.
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