Thursday, June 26, 2014

1937 Redux?

According to the BEA boffins GDP just fell 2.9% on an annualized basis in the first quarter. Wow, that sucks.  But it's also weird - things feel stagnant, not in free fall.  But if it is the harbinger of bad things to come then it would be a lot like what happened in the fifth year of another out of control progressive administration that was dealing with very hard times.  FDR presided over a double dip depression in 1937 driven largely by his administration's overreaching based upon the false reading of the '36 election returns.

We're not there and the President has far less power today than he had under FDR - much of the real power in our nation has leached away to the unelected banker catspaws in the Federal Reserve and the immense and immovable regulatory state.  But there's no doubt that confidence in the Federal Government has collapsed and given its enormous power, mostly for bad, that's a terrible portent for the future.

Be afraid, be very afraid.

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