What will it take to get the economy moving again? If you don’t know, relax – no one does, even at the highest levels of power and policy making. Wait … that’s more of a reason to panic than to relax, isn’t it?
That’s not to say that the Federal Reserve isn’t trying, and their heroic efforts deserve praise. But if you want to know how strange everything has gotten look no further than the simple fact that the Fed is far more interested in deficit spending and “stimulus” than the government itself. That’s completely backwards from what we have seen historically. Here’s a quick guide to the problem and what the Fed is trying to do to fix it.