“If the economy continues on the track indicated by the most recent incoming data and information, that forecast will become untenable, as will the policy premises underlying it.” Lockhart said today in Jackson, Mississippi. “My support for the current stance of policy rests on a forecast that sees a step-up of output and employment growth by year-end and into 2013.”
I’m glad that Mr. Lockhart sees a step-up in output and employment growth by the end of the year. But how will driving interest rates lower help when they haven’t helped yet?
The Fed’s balance sheet hovers around $3 trillion and the Fed Funds Target Rate is at a pitiful 0.25%. Yet, no ignition so far.
M2 Money Velocity has declined below any point since the end of World War II.
And mortgage lending (with the exception of Wells Fargo) has not really rebounded since it peaked in 2008.
Employment still stinks as more and more people go on the dole (disability and food stamps).
That’s right. There has been a net increase in people going on disability versus those dropping off of unemployment rolls since July 2010. And 4,911,742 more people have gone on food stamps over the same period. Yup, the dole is growing!
It is hard to envision a stout economic recovery with staggering, French-like increases in taxes and a growing welfare state when the number of people going on the dole exceeds the number of people getting jobs (and paying for those on the doll).
Here is the Hawaiian White House that emphasizes President Obama’s commitment to building a massive welfare state.
UPDATE: And a big shout-out to the DOJ and FBI Criminal Information System for monitoring today’s blogs by me!
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