Auguries — Inertia Creeps

September 16, 2011

By Kevin Michael Grace

Three years after the bankruptcy of Lehman Brothers and the beginning of the global economic crisis, it is remarkable how little is different. Many of our world leaders have changed, but they get their marching orders from the same bankers and economists, with the result that there is a continuity in their policies—nominal interest rates, stimulus direct and indirect, a vast increase in the money supply, a vast accretion of debt.

Despite this intervention, the recovery has stubbornly refused to appear, and unemployment remains stubbornly high. This is regrettable, according to the bankers and economists, but there was no alternative to their policies, as the consequences of their failure to act would have been unthinkable. Well, they would say that, wouldn’t they? Even so, one detects a note of dread in their recent pronouncements.

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