tradewithdave.com / January 9th, 2014
Just because Larry Summers is right for once doesn’t mean that it will work any better than backing up a plane. If you operated The United States of Everywhere from JFK, I bet you would be lobbying for a remodel too. It’s like trying to use your Palm Pilot to replace your Iphone.
If you ask Dave, Larry would be lucky if western economies were “condemned to oscillating between inadequate growth and unsustainable finance” to use his own words. As a matter of fact, if the plan was to end the boom-bust cycle once and for all, wouldn’t just such an “oscillation” be the plan. You see, that’s the thing about the confidence game, it’s based on trust and if you ask Dave, no self-respecting business person with skin in the game is going to ever trust the government again… especially not congress. The rule of law no longer exists in this country and has been converted to the rule by fine$ (Google these words JPM, Madoff & $2 billion). It’s structurally unsound and you can blame it on Citizens United v FEC, Hank Paulson’s Too Big To Fail, the dancing baby on the internet or whatever you choose, but there’s no turning back to Ronald Reagan as much as Stanford’s John Taylor would like to convince us that we could… not gonna happen.
Andy Perry of Crackernomics notoriety posted a very provocative article on his blog. The blog (United States of Everywhere) coincidentally goes by the same name as Larry Summer’s originating airport’s list of destinations and hits at the very core of the current “secular stagnation” debate between Larry and John. Larry is essentially saying “let’s rebuild JFK airport” and the rest of the country’s infrastructure while we’re at it, thereby creating jobs and don’t worry about government spending because it will more than pay for itself while John is saying let’s go back to the good ole genuine Cracker Barrel days of Ronald Reagan when business rather than government took the lead in generating demand and duck calls were blown to call in the ducks rather than the sole remaining expression of voter sentiments.