Federal Reserve: Revise Potential GDP and Declare Victory

Jeffrey Snider at Alhambra explains how America experienced a "lost decade," yet the Federal Reserve is ready to hike interest rates because it declares current conditions the new normal.
It is a gross dereliction of duty, especially where central bankers are now declaring both a deeply unsatisfactory and dangerous future as well as how that is the proper economic state. It is entirely nonsense, as the answer lies in the very place that central banks refuse to consider – the global money system. The results you see above are not unique to the United States, having been replicated all over the world. As discussed here, it is endemic in Europe as well, and can be spotted all over the emerging market world. There is nothing proper about it.

...Like it or not, we are in a depression having lost already one decade to it. The Fed raising rates is a wholly disastrous outcome because it means officials will no longer even try to do anything about it! It’s not that we want them to do more QE or come up with the next useless program, rather we require at the very least an honest and open discussion about what happened and further why it was and is unacceptable.
China's stimulus provided the global recovery and it ended in 2011. It's possible the rebound in 2016 was also the work of China's money printers. With credit tightening in China now, either the U.S. steps up credit growth or the reflation trade will likely run into the brick walls of the Marriner Eccles Building.

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