Wednesday, January 21, 2015

Strong State?

Someday soon we'll stop to ponder
What on earth's this spell we're under
--Styx

One question that should nag even the most partisan of supporters of this administration. If the state of the union is strong, then why are so many monetary and fiscal policies here and throughout the world pegged at epic disaster control levels? NIRP, monetization of debt (a.k.a. QE), massive borrowing and deficit spending, et al are policies previously articulated as appropriate only for extremely negative contexts.


Why is the pedal to the metal? Why are we employing tools designed for extremely negative contexts if things are not extremely negative?

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