The unemployment numbers this morning were just bad, even though the spin doctors were out in force. Of course we knew that because of census workers being laid off the number would be negative, and it was, down 125,000. But the “bright spot” we were told about was that private payrolls came in at 83,000 new jobs. Let’s look at what you did not see or hear.

We need to cut our fiscal deficits. We need to reduce the size of governments. But let’s make no mistake that it will be painless. It is necessary that we begin as soon as possible so that we can do it at a reasonable pace before the bond markets force us to move at a pace which will be even more painful. Be careful what you wish for.

In sum: Only a psychotic person could believe most Americans are qualified to borrow more money or are interested in borrowing/spending more money. There is literally no evidence to support the Keynesian orthodoxy and abundant evidence that reality is light years away from their blithe assumptions.

The “solution” to our Great Recession, we are told endlessly, is Keynesian stimulus. It’s not working, as we have the “Keynesian Disease.” In an imperfect yet weirdly powerful analogy, I suddenly realized the Keynesian “cure”–constantly flooding the economy with stimulus–is exactly like blood sugar and insulin in the human body. A number of our friends [...]