Saturday, January 21, 2012

Even California Economy Improving

The improving economy has even reached the state of California, where ever expanding regulation makes it very difficult for businesses to operate.

The Sacramento Bee writes:

The evidence keeps accumulating: California's economic recovery is gathering momentum. It's just nowhere near a boom yet. 
Unemployment in California fell two-tenths of a point last month to 11.1 percent, the lowest level in nearly three years, the Employment Development Department reported Friday. Payrolls expanded for the sixth straight month, and economists pronounced themselves satisfied that the state is finally on the right track. 
"We have sort of a nice string going," said Howard Roth, chief economist at the state Department of Finance. "This makes me more confident that it's not going to go away. … I think it's the real thing.
Even the Keynesians are noticing the turn in the economy. First, it was Roubini,  now even California Keynesian Howard Roth gets it.

NYT resident Keynesian columnist Paul Krugman has to know that his statement just weeks ago that the economy was still in depression is now going to be another in a series of his totally wrong forecasts.

But the worst is yet to come. Price inflation is about to pick up and Krugman is on record (hee hee) LOL warning about deflation.

1 comment:

  1. "Price inflation is about to pick up and Krugman is on record (hee hee) LOL warning about deflation."

    Really, Bob? Really?...

    I don't consider myself the best read, but even I know the Weimar Republic had a sharp deflationary collapse which is evidenced by a 66% increased value of the paper mark in 1917-1918 [See C. Bresciani-Turroni - The Economics of Inflation], AND in 1920 where the price of imports collapsed by over 50%.

    We know how that ended, but I just want to point that out. I hope you will cover your ass with this because those sharp crashes happened during steady increases in the money supply.