There are some serious omissions in this piece, Charile. Do we know what they are?
I. e., can we define the economy’s “growth” rate separate from money’s growth rate?
In other words, what’s the unit of growth and how does growth occur? Does it overcome the M3′s rate? If so, why is the M3 going nearly exponential not as a factor of evident growth (non-farm jobs just posted a 22 year low, for but one example, and there’s been some one trillion dollars in global write downs in credit markets over the last 18 months) but as a factor of a crashing dollar? As one might expect?
Against a crashing dollar, why are commodities exploding? Why have we allocated huge new powers to the Fed? Why is the Fed itself in turmoil, with many within it decrying our reckless, “helicopter” monetary policy?
If money is lent into circulation, incurring negative interest that must be paid back, how does that factor against this “growth”, as factor it must?
And so on. Inflation running some 10% and not the 3% the government reports. The national debt breaching $50,000,000,000.00 when you include entitlements.
Of course, the problem is our entire fiscal policy coupled with a reckless DC-based spending policy. That’s the actual bad news here.
