OK, perhaps doom is too strong a word, but then again, perhaps it is not.
In either event, 2013 is not shaping up to be a banner year for the economy. And it’s not just or even mostly because of the fiscal cliff.
Our financial system is not stronger now than it was in 2008 when it finally collapsed under the weight of crashing real estate prices that fell all the harder because they were ballasted by plenty of government guaranteed debt.
In fact, prepare right now for the Next Great Bailout. Because this time around, the federal government, via Dodd-Frank, has pre-announced that- come what may- they will bailout the financial system anytime they feel like it, no act of Congress necessary.
I’m getting a feeling that both the Obama administration and the loyal opposition are concerned about an economy that they know is ready to screech to a halt in 2013.
That’s why they are pushing the fiscal cliff story so hard with their known associates at the Congressional Budget Office.
Certainly they know what the Fed knows; the Fed that has said it will keep interest rates at sub-zero until evolution produces men who can produce hundred dollar bills via extra sensory perception. The Fed, you see, is gravely concerned about the next year’s GDP outlook. And they should be
And because even government economists recognize that evolutionary change- like men who can conjure money out their hope and change gland- takes quite a bit of time, the knuckleheads at the Fed- who have no other plan than producing more hundred dollar bills- are sore afraid.
That’s why the Fed has told the financial system “free money- for everyone- 4-EVER!”
“Everyone,” of course doesn’t include you and me.
They are trying to buttress Obamanomics with paper dollars even as the columns that are needed to truly support the economy, jobs- that’s where OUR money comes from- comes crashing in… again.