Tuesday, July 27, 2010
So I'm watching this economics thing, that is I mean our economic continuing melt down in a kind of goulish sort or way. Kind of like a slow and cheaply made slasher movie. Those who are in the know, or rather those who are in positions of power and who belive in the all powerful elites (you know those who got us into this situation: 9% uncmployment and the housing bubble and stock market crash) insist that we must not spend on the unemployed and limit our spending on well gee just about everything, except wars. Also we gotta maintain the tax cuts for the wealthiest 10% because if we don't well then they will all go Galt, don'tcha know.
The first chart being the actual deficit and what causes it, although of course it really isn't important in any real way at this point, because the inflation rate is so low and the unemployment rate is so high. So our government can spend a lot of money and print a lot of money and there will be little or no effect on the rate of inflation, or at least the effect will be so small that it would not matter in the scheme of things, but that isn't what our betters are telling us. The other aspect of that is to look at the above chart and see where the deficit is coming from. The wars and the tax cuts for the wealthy. It doesn't seem to be an area to discuss for anyone who matters. Hell even Noble Prize winners are ignored.
Of course the real problem here as far as I'm concerned, is that I'm one of those teenagers who has just had sex and smoked a joint (metaphorically, of course), so I'm next in line for a visit from the slasher.
Oh: more good news from the ST. Louis Fed:
A point being that we are getting ourselves into a position where those of my age and only slightly younger are simply not going to be able to get jobs, ever.