The Ecnoomic "Green Shots": November 09 Reflections
Wednesday November 25, 2009 was the day that a whole batch of economic data was reported out. It was a mixed bag at best.
This was a shortened week because of the Thanksgiving holiday in the U.S. I reviewed a number of economic data that came out suggesting that things continue to be on the mend. Yet, I continue to struggle with the fact that the recovery continues to be a jobless recovery. What I find troublesome is the comments attributed to Peter Orzag, the White House Budget Director, during a recent talk when he noted that the young graduating class would be struggling in a major way to gain employment. There has been an uptick in customer spending, yet jobs are not being created yet. I realize that jobs are a lagging indicator, but someone should tell that to all those voices from the street corners who are springing up all over the place.
The continued stimulus policies pursued by Governments throughout the world risk inflation and another asset bubble. I understand all of that. But, I continue to wonder what other alternative exists. I have not seen any alternative with the exception of the tired old ways of simply cutting taxes and gutting whatever remnants of a reasonable social safety net that Ronald Reagan advocated left. I also continue to be concerned about the defacto negative interest rate on the short term Federal Debt being issued by the Federal Government.
The struggle will continue to be ever more as we race to end the year and gear up for 2010. I am grateful for any greenshot. But I continue to be worried. The uncertainty will continue to hang over us all and I worry that we would continue to repeat past mistakes.
This was a shortened week because of the Thanksgiving holiday in the U.S. I reviewed a number of economic data that came out suggesting that things continue to be on the mend. Yet, I continue to struggle with the fact that the recovery continues to be a jobless recovery. What I find troublesome is the comments attributed to Peter Orzag, the White House Budget Director, during a recent talk when he noted that the young graduating class would be struggling in a major way to gain employment. There has been an uptick in customer spending, yet jobs are not being created yet. I realize that jobs are a lagging indicator, but someone should tell that to all those voices from the street corners who are springing up all over the place.
The continued stimulus policies pursued by Governments throughout the world risk inflation and another asset bubble. I understand all of that. But, I continue to wonder what other alternative exists. I have not seen any alternative with the exception of the tired old ways of simply cutting taxes and gutting whatever remnants of a reasonable social safety net that Ronald Reagan advocated left. I also continue to be concerned about the defacto negative interest rate on the short term Federal Debt being issued by the Federal Government.
The struggle will continue to be ever more as we race to end the year and gear up for 2010. I am grateful for any greenshot. But I continue to be worried. The uncertainty will continue to hang over us all and I worry that we would continue to repeat past mistakes.
Mike Pouraryan
