10 Years Of Job Weakness

Image courtesy of Calculated Risk.

Welcome to Economic Winter. The economic season that started in 2000. Now, ten years later, we have about the same amount of jobs and a population that is 10% larger.
No wonder unemployment is so high.
Unfortunately, the world improvers who brought you Alan Greenspan, Ben Bernanke, George W Bush and President Obama will now try to "save us" from the continuing economic crisis. Rather than let nature take its course and correct all the excesses of the past 10 to 20 years, we can expect even greater government interference with the market process.
Rather than let deflation and deleveraging and debt reduction take place to correct the mess, we can expect enormous intervention and quantitative easing. Negative interest rates are even a possibility by placing some kind of expiry date on money to increase its velocity as we pointed out in a previous post. http://whatisthatwhistlingsound.blogspot.com/2009/08/economist-has-no-clothes.html

At some point, likely a few years from now, we can expect that deleveraging will finish. Then the trouble accelerates as the velocity of money increases and inflation takes off as governments try to inflate their way out of debt.