The mainstream is really grasping for straws now.
How about what the call ‘stimulus’ is in fact nothing of the sort?
Seems no amount of evidence will change their minds.
As Paul Samuelson once quipped, economics changes one funeral at a time.
Meanwhile, as previously discussed, the ECB has solved the solvency issue,
and they’re now left with just the bad economy part,
with ‘conditionality’ there to ensure the output gap never closes.
This is strong euro medicine, but US austerity and the fiscal cliff is highly
dollar friendly, and it’s all very much the same globally.
So overall it’s an ongoing case of low demand/large output gaps and self imposed global misery
with no end in sight.
In the space of 30 days, five major central banks took turns to deliver aggressive stimulus measures in a bid to boost growth. Could they have made a bigger impact if they had announced the measures on the same day?