A Fine Mess You've Got Us In !

Just Because a Meme Sounds Terrific (jobs, growth, stimulus)

That Doesn't Mean It's True !

One month ago, I published a post entitled "Near-zero Interest Rates are The Won's Drug of Choice," which was an off-hand, micro-economic look at the fine mess he's got us in. The conclusion was that near-zero interest rates are the economic equivalent of crack-cocaine.

Here we look at the macro-economic mess, at the ingredients of the economic hash being dished out in DC:

• Gotta have jobs
• Gotta keep interest rates low to stimulate business
• Gotta remain competitive
• Gotta have free trade

I hate suspense . . .here's the punch-line:

Multi-national corporations are borrowing money in the US at near-zero
 interest and using those funds in other countries.  
(This out-flow of funds is one source of the downward pressure on the dollar)

That money is going where it is most productive . .
. to the borrower – to low-wage, low-tax, low-regulation, 
low-uncertainty environments and growing markets.

Low-wage, low-tax, low-regulation, low-uncertainty 
are not words that aptly describe the U.S.under leadership of The Won - 
the country that is financing this economic activity.

Put it all together:  

The government of the Obamessiah is creating the high-cost,
 high-uncertainty environment and then . . .
financing the job loss to better corporate environments 
and to growing markets

What remains to be said?

How dumb is that?

This is a bi-partisan dumbness, but The Won is making policy now.  The fact that he has support on both sides of the aisle does not absolve him of his failure to lead wisely.