Problems with an Artificial World
Goodbye Ben, you lived up to the “Helicopter Ben’ name. Now the slow process of unravelling your artificial world will start, not very fast, as Janet is not far out of your pocket, but it will change. So here is what I think:
1) You have had an effect, Japan followed in your pattern, and Europe kind of followed.
2) Your research into the 1929 Depression showed that if the FED would have spread more money around, things would have been better. Maybe, but more probably it would have just delayed the adjustment to core values.
3) So in your case, you spread money around and made the stock market go up, but the real world still had to deal with the real world problems that have not been repaired.
4) In addition we now have a Global marketplace with core values in the economies out of balance, this leads to things like Turkey today.
5) We all have a lot of work to do if we are going to repair the Global damage that a reluctance to allow a move down to core economic values setup before hitting restart.
6) Bottomline, economic recovery is built on solid economics.