If you read this blog regularly, you know a lot of this, but it is a good summary. For the REALLY quick summary:
- Taking blood out of people makes them sicker
- Deficit spending just makes an economy sicker.
It took about 2500 years and countless deaths (including that of George Washington) before doctors figured out that bleeding patients was actually harmful. One has to wonder how much real-world data it will take to convince the likes of Paul Krugman and Jared Bernstein that Keynesian (spending) stimulus just makes the economy worse.
Oh, and by the way. The recent five-month decline in the FTE jobs ratio coincides exactly with Ben Bernanke's QE3. And yet, the "market monetarists" keep calling on the Fed to "do more".
It is a historical fact that George Washington's doctors performed three rounds of bleeding on him before he died. We can only wonder if they referred to the last one as "QB3".
'via Blog this'