Doug Noland - "Z1 and the Doves"

``Post-crisis Macro Credit Analysis has provided myriad curious anomalies. Incomes have grown steadily in the face of stagnant Household debt growth. Real estate price inflation has reemerged despite an ongoing contraction in mortgage Credit. Household Assets and Net Worth have surged in the face of ongoing weak private-sector debt growth. In sum, there's been a resurgent Bubble Economy in the face of relatively modest overall system debt growth. This is definitely not how it traditionally works. Those of a bullish persuasion would argue these dynamics confirm the underlying strength and stability of the U.S. economy. I'll counter with the view -- one supported by Fed data - that massive federal deficits and Federal Reserve monetization have created unprecedented and deeply systemic financial and economic distortions. ''