Is This Recovery “Self-Sustaining” or Merely a Mind Trick?
by Charles Hugh Smith
Of Two Minds
Perhaps the “recovery” is a Mind Trick played on the weak-minded.
Those with vested interests in the Status Quo tout data that supports the claim the “recovery” is now “self-sustaining,” meaning that the economy is now expanding fast enough to fuel new growth. In this view, the Federal Reserve’s extraordinary policy interventions (zero interest rate policy, $23 trillion in support provided to the global banking system, 3.4% mortgage rates, etc.) and the Federal government’s unprecedented fiscal stimulus (borrow and blow $1.3 trillion a year) have done their job; the economy is now “self-sustaining,” meaning that it can continue growing as Federal deficits shrink and the Fed trims its quantitative easing policies.
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2012-11-27 03:21:03
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