Raghu Rajan in a blog post and Project Syndicate column titled Money Magic raises the other important issue with respect to low interest rates. The first, as I have been harping on, is that cheap money for banks is hurting the economic recovery by the resurgence of a new bubble in commodities that lowers discretionary income. Arguing in the same manner as Bill Gross that extended low interest rates work as a tax on savers, especially elderly risk averse bond holders, and thus reduce their income without providing any positive economic impact in return. Companies are sitting on cash and individuals are still deleveraging. Just goes to show what a confused mess we are in. I know why don't we borrow the money from ourselves, or just conjure it up like the banks, and invest it by providing public goods, jobs, training and infrastructure improvements and the basis for long term growth. Wait we can't do that the debt ceiling is falling, never mind the fragile recovery of the economy or our faltering ecological system.
Vacation
July 28, 2009 Vacation day #2 On my to do list for this week to begin and maintain a journal that I am committed to regardless of the peaks and troughs that time allows. In preparation I have been especially interested in reading entries deposited in varies places, notebooks, napkins, etc. earlier that communicate the mundane daily events and hope to stick to that recipe. The actual accounting of time provides for memory maintenance and proper placing of things. Otherwise, I have always thought or debated what the goal of an exercise like this should be and having not too many important things to say I will stick to the mundane time keeping with respect to personal matters. Furthermore, I don't have a particular audience that I am shooting for so I will pick one and who better to write to or about than the particular growth and development of William Van Namen-chief cat annoyance officer. This is perhaps too harsh a title, although Marian wouldn't disagree, the better qu...
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