As we discussed in last week's blog "Race to the Bottom", traditional means of stimulating economic growth are no longer working and are, in fact, backfiring from their real intent. Governments need to move away from reliance on any additional monetary stimulus, which clearly is not working, and begin huge fiscal stimulus programs financed with 50+ year bonds at little or no cost. If not, the risks to the downside, including deflation, will continue to rise. But change is in the air!
Look at what happened to all financial markets Friday after it was reported