How can anyone sit here and say that this isn't true?? This chart shows unequivocally how record deficits have created record private savings. This is absolutely irrefutable. Our leaders and academics are operating under a completely irrational belief system.
investment = spending
ReplyDeletepeople save because they were robbed by the market and wall street.
they took what was left of their money and put it into cold places like banks, safety deposits, and gold.
but at bizradio they are playing the same commercials since last summer - and the same tune to desensitize those who were preparing for the "pull back"
pull back schmull schmack.
It will be a "W" shaped recovery, but who's counting ?
It is very striking how Frischberg and all the others at Bizradio
ReplyDeletehave finally come around the fact of the Fed&Tsy crediting accounts.
Indeed, Frischberg had a special consultant on the air today who explained that the Fed is NOT printing money since it is crediting banks and has the ability to remove the funds to take out the heat and MOP it up.
His example was shortly after 9/11 where the government did injections and then took them out.
The Norman Theory of Capacity and action thereof has covered all this in an overarching manner for sometime ...
We just need to stop debasing and putting down the other hosts and the callers and change the format for a new Norman show.