Monthly Archives: April 2011

Good article by Robert Reich.   Bottom line is that it heavily supports continued if not increased government spending as more important than the inflation risk.  I think this is how things will play out big time and today’s federal reserve minutes probably support that view?  Here are some quotes and link.

“The most significant economic news from the first quarter of 2011 is the decline in real wages.”

“Wages are stuck in the mud and everything we buy abroad costs more, Americans have even fewer dollars to spend. This also spells recession, not inflation”

“The Street has it backwards. Over the long term, the deficit does have to be tackled. But not now. When job growth remains tepid, when wages are dropping, and when the value of most households’ major asset is declining, government has to step in to maintain overall demand.”

“This is the worst possible time to cut public spending or reduce the money supply.”

“America’s jobless recovery is becoming a wageless recovery. That puts the odds of another recession greater than the risk of inflation.”

http://robertreich.org/post/4962078752

Invest accordingly !