By Global Macro Monitor
Let us begin by saying we don’t like the title of this post and believe it is misleading.
The President cannot, in our opinion, directly create permanent jobs in the private sector. Of course, he can hire federal workers and/or direct taxpayer funds to, say, defense or infrastructure projects, which creates, though temporary, a derived demand for labor. More important, however, is the administration’s policies that incentivize private sector hiring through creating an environment that empowers businesses and entrepreneurs and gives them confidence to expand capacity.
….In the short term, however, quantitative easing and negative real interest rates can generate asset bubbles, which can affect the real economy and hiring. But the experience of the collapse of two major bubbles in just a little over a decade illustrates there is always pay back and the monetary induced artificial boom will eventually turn to bust.
Ross garnaut is a smart man. But I dont think he endeared himself to the people when he dirtied up the surrounds of his mine on lihir island …sold out and said it was not his responsibility as he had no shares in the Co