If You Like Economics . . .

[Wake-up!]

"I think that the main element suppressing growth is the heavily leveraged U.S. economy. We have too much public and private debt, and this debt does not generate an income stream for the aggregate economy. As a result of the prolonged indebtedness, which is on the verge of going much higher because of problems in the governmental sector, the economy is now experiencing very poor demographics. We have a baby bust, a household formation bust, and the lowest birth rate since 1937. These demographics are exacerbating the problems because we have too much of the wrong type of debt and thus the velocity of money has been falling since 1997. Velocity this year is only 1.43 percent, which is the lowest since 1949. Furthermore, the debt creates a situation where monetary policy capabilities are asymmetric. In other words, a lot of action is needed to provoke even a muted impact on the economy, whereas the slightest monetary tightening goes a long way in depressing economic activity. So the root cause of this underperformance is extreme indebtedness."

Read on, or watch a video, at;  https://www.zerohedge.com/news/2017-12-28/lacy-hunt-unintended-consequences-federal-reserve-policies

Once again, an article full of issues, and short on solutions. Clearly, to me, Keynesian economics put us where we are today, so it is not the model to follow for a recovery, if a recovery is possible.