Liberty Maven

In this article reporting on the latest UCLA “Anderson Forecast” we get a quote from David Shulman, the report’s author.

“They’re talking a lot of infrastructure, which makes a lot of sense. They’re talking a middle-class tax cut. I think when Congress gets through with this they’ll be raining money on the economy,” Shulman said.

Uh-huh. Previously in the piece Shulman laments the “risk” of deflation. The type of deflation he is talking about is price deflation, not money supply deflation, and price deflation is already here. I’m curious what he thinks will happen when we start “raining money on the economy.” He also magically predicts the restoration of growth in 2010.

The historical long-term trend of 3 percent growth will not resume until 2010, the report said.

Mark your calendars for January of 2010, then come back here and see if he was right. Even if he is right, what good is a growth in GDP of 3% when inflation is growing at 50-60% or more? Shulman’s prediction of “raining money” is already happening and when currency rains, price inflation pours.

So Shulman makes two predictions that are already underway and can be seen with the naked eye. It is this kind of brilliance that got us into this mess in the first place.

Or maybe his “forecast” was meant as humor. If so, he certainly made me laugh. I wonder who will laugh last?