I would make two points in regards to current policiy and markets and stimulus.
First, as near as I can tell the QE by the Fed is both not nearly enough in such a large economy and is aimed at the wrong target - the financial sector. In fairness, that's all the Fed can do and the real heavy lifting needs to be done by Congress - which they are deliberately NOT doing. Meanwhile the financial institutions are largely sequestering the cash they get from the Fed for riskier assets they want to unload. That cash is NOT flooding the economy because it has no way to enter the rest of the market. A consyuymer based economic system where the consumers are tapped out and struggling to find jobs and raises does not reward investment in producing consumer oriented products. Therefore the speed of circulation is poor, leaving the economy in the doldrums.
Second, until there is a restructinging of tax policy and loopholes the middle class will continue to shrink and the consumer economy will remain weak. The middle class can't compete by sending revenue offshore to avoid taxation (assuming they had enough disopsable income to do so). The marginal tax rate (actual taxation as a percentage of income rather than the tax bracket loopholes subvert) is unfair to the middle class.
As farmers we have many subsidies and loopholes and other policy programs that reward our sector. We are a favored group that benefits - and yet many of us claim these same practices are unhealthy used in other economic sectors in trouble. Many of us think it's in our interest to have it both ways. But there is no argument the effect on markets has been dramatic within our industry.
I think it's a mistake not to restructure tax policies for the public good. What's good for the goose is good for the gander.
