Amazing, since the “Great Financial Meltdown” in 2008 and the following “Great Recession” the USA and the European Union have pursued distinctly opposite policies to revive their economies.  The USA has used massive deficit spending and massive injections of funds into the economy via the Federal Reserve Bank.  Funny, these injections are provided by the Fed buying US Bonds (IOUs) with Federal Reserve Funds (another IOU).  Talk about using debt to create wealth.  And most thought that the mortgage backed securities were “toxic.”  But then the Fed funds and the US bonds are backed by those, “…spacious skies, amber waves of grain, purple mountains, and fruited plains.”

The EU led by Germany has used the directly opposite approach with its austerity programs to cut government expenditures and raise taxes and thereby balance government budgets.  The result has been riots in the streets of many EU countries principally Greece and Spain. 

What is amazing is that although these are totally opposite programs both sides of the Atlantic have finally reached modest levels of improvement in their economies, although neither side has as yet developed what could be called a “full recovery.”   Makes you wonder if the economy operates oblivious to government policy.  It seems that no matter what the government does the economy will correct itself - eventually.  And here is the rub, how long will the public wait for the ”natural” recovery to take place?