Thought Experiments - Barrons.com
Another thought experiment might relate to the old 'pushing-on-a-string' paradigm.
In other words, low interest rates and beneficent Ben have been pushing on the proverbial economic stimulus money string.
This string has been held back by the economic ice and snow of regulatory and fiscal policies that in part try to foster favored outcomes (be they environmental or entitlement based).
American economic competitors like China appear to support capital formation and high incomes - yet American liberals (think also Occupy-Wall-Street) seem to find support aggrandizement anathema.
Yet, through it all, these same liberals believe they can maintain the out-sized demand of the US economy on global resources with concomitant beneficent blue-collar incomes.
In light of the above, we've seen what happened to Greece when the economic string of euro-borrowing suddenly fell away.
We don't see even an acknowledgement by the political left that they have created barriers of economic ice and snow.
As a result, will Bernanke's money string continue to deliver as anticipated?
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