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Mr. Gnawbone
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Is the United States in a Liquidity Trap?

- Frank Shostak -

The government body is being starved of calories, money flow, it lives on the largess of an over fueled economy, the people have become used to living on less. The government is like an overweight relative who doesn't understand that things are changing around them. The current system barely works at a full throttle economy, the slow down brings the weaknesses of our economy to the surface. Most folks aren't saving more, they're just Out of money.

Commented 4492 days ago

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Beginning of the headline :In his New York Times article of January 11, 2012, the Nobel laureate PaulKrugman wrote, If nothing else, we've learned that the liquidity trap is neither a figment of our imaginations nor something that only happens in Japan; it's a very real threat, and if and when it ends we should nonetheless be guarding against its return — which means that there's a very strong case both for a higher inflation target, and for aggressive policy when unemployment is high at low inflation... Read More

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