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Everything is good!

May 8, 2012

The sky is clear… the water is smooth… our economic recovery is a no-brainer!

Do you ever have those moments when you just sense that something is lurking below the surface?

It seems that all the euphoria of easy money from our central banks might be starting to wear off once again and we are due for another “fix.” I trust very few economic reports that come from our government that “prove we are in the midst of an economic recovery and inflation is remaining under control.”

The best place to look for trustworthy evidence of an economic recovery is in tax revenues. The independent Legislative Analyst is reporting that California missed their big revenue month of April by more than 20 percent, or $2 billion. That is a big miss and begs the question that if we are in an economic recovery, why isn’t it showing up in the numbers that can’t be manipulated?

Hey, I have an idea—maybe we should tax the central bank’s creation of new money. Man, would that be an amazing source of revenue. We would have so much in new taxes even the politicians couldn’t find a way to spend it all! OK, maybe that is a bit of an exaggeration!      

 

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One Comment
  1. John permalink
    May 9, 2012 8:35 am

    Very true Jon. The fed certantly does not seem to be helping this economic recovery. It seems they are straying from the basics. Although there has not been much truth the basics worked in the first place.

    I don’t know if holding interests rates down for as long as they have may be the best choice. Especially when it has not proven to get us out of this rut.

    I cannot help but think about what lay ahead with this being the fifth straight day of a large sell off on Wall Street.

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