What does a “downloaded” economy look like? An Update

Back in March I published this post:

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”.

Update: My view that it was an “Indian Summer” has been proved correct. The charts show the long bond and S&P following my friend´s optimistic takes. As soon as they wrote things drastically reversed.

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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4 thoughts on “What does a “downloaded” economy look like? An Update

  1. Pingback: pictures of the depression « Irvington Parents Forum

  2. Pingback: Loss of production capacity due to dysfunctional monetary policy « dajeeps

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