What does a “downloaded” economy look like?

As the nominal spending charts below show the economy´s “download” was sudden, fast and furious. It certainly wasn´t achieved through a dial-up connection. Must have shot down through a band so wide it could only have been the work of the “monetary engineers”!

And the real magnitudes followed suit.

And the word is being spread that the best thing to do is “keep it down”, lest inflation blossoms!

Some of my MM friends look at the recent movements of the long bond and the S&P index and get excited. I still believe it´s just another “Indian summer”.

The last chart indicates that Fiscal Stimulus (Government Spending) was “switched” on and off in 2008-10. Did nothing to “upload” the economy and caused a lot of trouble.

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