Green shoots precede black economic hole
Ben Bernanke’s so-called ‘green shoots’ are little more than the temporary result of a massive injection of money into the market that can only have the effect of ensuring that the economy of the United States contracts quickly and painfully in the near term and remains moribund for at least a decade after that.
Markets always find their mark and the US government’s and Fed’s interference are disrupting this natural process.
US employers are voting with their chequebooks with the consequence that unemployment is up significantly more than economists expected in June. Parenthentically, economists’ predictions over the last 12-18 months have been about as accurate as James Hansen’s or Tim Flannery’s climate predictions.