Growth Before Jobs?

According to Treasury Secretary, Geithner testifying before a House subcommittee on financial reform, "growth comes before jobs."

The hypothesis is that the accumulation of capital is invested to produce growth and, therefore, jobs.

With trillions of dollars having been accumulated, why is employment continuing to decline?

The logical inference, based on the working hypothesis (the practical model in operation), is that the economy is still in an accumulation phase of the business cycle.

The deprivation of the capital accumulated is considered an investment that, a la Reaganomics, will cause employment by causing unemployment--by readjusting the cost basis of the capital's value. The logical inference from that is: being unemployed is beneficial because it leads to employment.

This is what a political-economic tragi-farce looks like in the purest form of the art.

No Weak-Dollar Recovery

Organization of the economy over the last decade, and perhaps going farther back, anticipated a weak-dollar recovery as events predictably transpire (or conspire) into the current recessionary trend.

Despite the CFTC's effort to regulate futures, a weak dollar will continue to be a program price-signal to buy energy futures. The support for energy prices is deflatonary, resisting support for the dollar, recovery, and employment.

Indeed, this program trage conspires to continue the accumulation phase of the business cycle despite the mounting regulatory resistance.

Discouraging an asset class from futures contracts is easily circumvented with structured investment vehicles that do not appear on balance sheets. The program not only hides the reward of the intended deflationary effect, but the risk to that reward.

The hidden risk systemically appears as an ontological, cyclical trending that is, nevertheless, deliberately program generated.