Economically, the whole world has become Japan
We’re talking Japan of “the lost decade” (now a couple of decades old). We harp about markets and government intrusions here and explain why they’re almost always “a bad thing”. Well, this is about market intrusion on a grand scale:
One of the consequences of all the stimulus and subsequent QE is that long time traders of our markets know they are screwed up. Consistent printing of money and 0% interest rates world wide have created their own economic imbalances. As the saying goes, there is no free lunch.
Economists such as Taylor, Cochrane, Zingales, Rajan and Murphy have said as much over the past four years. Turns out, they were right and the Keynesians are wrong.
The government stimulus had a multiplier effect of 0. It did nothing for job growth or GDP growth in the US. Combine the inefficiency of US fiscal policy with the continued implosion of Europe, and you have a world wide malaise. In China, because of macro economic effects, wages are rising, costs to produce are increasing. Companies are also wary of both the poor property rights system and the lengthened supply chain. China is slowing down.
Remember all the talk about the multiplier effect of the stimulus? Yeah, disregard.
Meanwhile in the rest of the world the effects of all these market intrusions/manipulations are having their effect.
As the title says, we’re all Japan now.
Thanks, government(s).
~McQ
Twitter: @McQandO
Most of the dems want to double down and spend more. Krugman has been preaching it for a while.
It’s like they think it will all turn out differently the next time around.
Their plan is to keep doing it until something else makes things better, and then they’ll claim their plan worked. That’s how ‘gentlemen’ like Krugman, Pelosi, Reid, Obama, work.
If the Democrats really believed in this tripe, they wouldn’t be scale back the DN Convention in Charlotte.
The would be running a hug deficit, employing everybody they could by adding useless rules and events that employ more people.
Happily for their citizens, a few nations have declined to join the parade of the Lemmings. They provide nice models.
Start with this … How Obama lost Canada
They were making noises about a European “stimulus” late last week, but I think the Germans killed it.
Oh come on guys don’t be so hard on Mr. Obama, after all he is the JOBS PRESIDENT. He and Sheriff Joe made JOBS their 1st priority. After fund raising that is.
Start them off with $40 million now add another $80 million and they provide 3 jobs in 3 years.
http://washingtonexaminer.com/green-company-creates-three-jobs-in-three-years-gets-another-80-million-from-doe/article/2500569
You just can’t argue with success like that.
Yeah. More of that “leading from behind” stuff.
” At times he looks dazed, and flails. To focus his economic message, he gave an unfocused 54-minute speech on the apparent theory that the more sentences in the mix, the greater the odds of a keeper.”
Sounds like Obama has been taking lessons from our Dear Erb.
Wicked. AND true… Both suffer from common maladies, I believe.
“determination to avoid life’s traps.”
Now let’s be honest, what is described is not “avoiding traps”. It is just trying to be everything to everyone without taking a stand anywhere. Some mental midgets can bend this to be nonideological perfection. The rest of us know it as someone who you wouldn’t trust near a toddler with a bag of candy. In the end you wind up with a guy who will get sacked for incompetence or used like a cheap hooker by the bigboys until they have no use for their puppet… or both.
If ObamaCare goes down on Thursday, about all that will be left of the Obama Legacy is making the Dept of Education into the national’s largest bank … holding the bag for the next “bubble.”
I just had a brilliant Idea! Mr Krugemann says that we just don’t have enough demand and we are in a demand slump or something like that. so why not just set the minimum wage to $200 per hour!
Just think, we all would have so much more money, so there would be a whole lot more spending! and more hiring!
Pingback: Economically, the whole world has become Japan | Liberal Whoppers