Read here about our muddling Congress and politics as usual with the Incumbent Party. The 545 are evidently determined to shackle the economy with continuing uncertainty and misdirection of scarce resources, which is the one and only fundamental cause of recessions, as I have explained before here and here and here.
Recessions don't just happen; they are not naturally occurring phenomenon. Worse still, recoveries that return employment and unemployment to reasonable levels don't just happen either. Recoveries require removing what causes the recession in the first place. By the way, it wasn't Wall Street and unregulated financial markets that caused the most recent recession. I've explained all that before here and here. and here.
Read here about how the economy can be returned to a job-creating dynamo that raises all households' prosperity from bottom to top and left to right. But don't hold your breath until our Congress, full of incumbent lawyers as it is, does the right thing. To get the right thing done, you will have to join the New Blood Party. Read about the NBP here.
The single most important cause of all recessions is simultaneous mistakes made on a massive scale by producers and consumers about what to produce, how much to produce, how much to consume, and how much to save. Our most recent example is the mistaken production and consumption of housing that resulted in a bubble that simply had to collapse. What do you suppose could cause all that wretched decision making simultaneously? You already know.
The housing bubble simply could not have happened without the misguided policies of the Incumbent Party, policies embodied in Fannie Mae and Freddie Mac, and without a willing Fed that accommodated massive expansion of the nation's money supply of credit money.
Most of that credit money was borrowed first by the U.S. Treasury, and only later by wanna-be home owners and house flippers who couldn't or wouldn't make their mortgage payments. If you have forgotten how all this works, read about it here.
That truth has been explained and rehearsed so many times, both in this blog and elsewhere, it is truly hard to imagine how the Incumbent Party has not already been forced out of town in disgrace by us voters.
Our next chance is this November. Get out front; lead the herd. I urge you to join me in the NBP; vote the rascals out of office in 2010 and do it again each and every election hereafter.