Just when the mainstream press thought they had a solid theme to report, something unexpected happened. No one quite knows what’s going on for sure. But the economy’s popular storyline appears to be drifting off plot.
The general consensus since late last year has been that the U.S. economy is moderately improving while the world’s other major economies – Japan, China, and Europe – are becoming weak like an over breaded meat loaf. Until a few weeks ago things were rolling forward according to script.
The presumed strength of the economy was finally pushing the Fed to raise the federal funds rate after six plus years of being zero bound. June of this year was broadly thought to be the magic time when Janet Yellen would finally pull the trigger. But things rarely go as man – or woman – ordains them.
“Jove does not give all men their heart’s desire,” observed Homer, some 2,750 years ago. Homer probably didn’t have central bank intervention into credit markets in mind when he made this remark. If he had, he would have laughed with the gods at the vanity of it. Continue reading
