We're becoming a financialized economy. Never before has the manipulation of money counted for so much and the real-world economy of people and consumer goods counted for so little. And none of it is an accident.
It is clear that governments need to allow the deflationary deleveraging process to finally run its course, rather than continue to artificially prop up the economy by expanding public debt and having the central bank buy it all up.
Obama has clearly chosen a path for the economy, and those of us with a different idea about how to work on these issues have to live with the fact that we have lost the debate, for now, inside the administration.