We thought it would be useful to revisit economics. In the early 2008 period we spent a great deal of time looking at the then new Administration and its "economic" plan of "shovel ready". We demonstrated over time its gross fallacy. Now on to today.
First the yield curve. It is flat and the FED is giving our "free money" This is worse than the helicopter drops of 2009!
The spread is back to nominal. We were getting better then the plague years doomed us again.
Now the FEDs balance sheet. Loaded with Treasury money and mortgage securities. The explosion is in Treasuries.
This is the current split. The FED is feeding the tiger and setting it loose.
If we eliminate all other parts we get the following. In fact these two are all that count.
One could call this "Welcome back Carter"
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