Money velocity is such a red herring. Nick's right, the second the economy starts to recover all the money the Fed printed will suddenly flood into the market and asset prices will be bid up dramatically.

 

It'll be really fascinating to watch. And the only way the Fed can stop it is by selling bonds... but who's going to buy them? China is going to laugh in our face. Eventually income taxes will have to be raised, because you can't pay for universal healthcare, universal education, universal retirement, universal hankypank, etc without first dumping your global empire.

 

This will go down in the history books as the most redneck nation in the history of the world. (pardon the term, if you happen to be a redneck who's reading this). ;)

This will go down in the history books as the most redneck nation in the history of the world

 

Dammit I hate country music, all they sing about are drunken broken hearted cows.

 

Did you see that Goldman Sachs skipped the month of December on their balance sheet. Apparently because they switched to a holding bank from an investment bank, their years run differently and their year ended in November and they started the new year in January under the new rules thus skipping reporting a huge loss in December.

It's Goldman Snacks! And naturally they skipped December - it's all office parties anyhow..

They're on the Mayan Calendar now. And when you're kingdom is run by Mayan Gods, there's a little leeway during the harvest sacrifice month (unless you're part of the initial offering).:P

It's complex machinery, this global system - I think Robert Reich has the pulse of the economy figured out, even if his timing has been off. But the leading indicator I go by is demand for raw materials; once everything else picks up, the proof is when there's demand for the commodities that are essential to the economy - and I haven't seen much rise in the metals market yet..

And the investment in health care has unseen dividends, because healthy people make a more vibrant economy down the road, plus having social safety nets is a good thing - yes, dump the global empire - we were never supposed to be one, and it never works in the end anyhow, so I'm all for that.

 

I think China is buying a lot of copper.

I need to vent, and this is my only place to do it, because I know Nick will come comfort me.

 

If there's one person I'd love to punch in the teeth more than any other, it's this guy:

 

 

I know, I know. I'm a non-violent anarchist. But he did win a Nobel Prize. And he is a douchebag. So if I ever run across him in public I'll temporarily set aside my principles for the "greater good". Sorry if that sounded statist of me. I'm still recovering.

Don't you dare hurt my favorite person in the world.

Your favorite person? Is this setting up for a Triumph the Insult Comic Dog "for me to poop on!" moment? :laugh3:

 

I love that image of Krugman, though. It's like he was caught taking a dump in the corner of your local public library and he's going "Rrrrr?"