Comment on The Economy - "The Window", update

1) When did the window open, the window being a time when assets (hence a form of money supply) depreciated to the point where the government actually should increase the money supply and/or debt to stimulate the economy, without risking serious currency weakness or serious inflation?

2) How long will the window be open?

Housing began to depreciate the beginning of 2006, unemployment began increasing in the beginning of 2007, the Dow started its decline in the middle/toward the end of 2007, and finally oil/commodities in the middle of 2008.

So, I calculate the approximate time when the window opened being the middle of 2008.

I would look for the first sign of the window closing being when unemployment starts decreasing. At that point housing prices probably would have stopped going down and begun increasing.

Obviously, there could be some unexpected event or series of events, particularly of a geo-political nature, which closes the window, but there is a window and it has been open for about half a year.

The bottom line is the window opened around the middle of 2008 and shows no immediate risk of closing, at least for a few more months, but likely longer.

Also, I would add that if it is a choice between the government increasing the money supply (by buying Treasury bonds, notes, etc - monetizing our debt or just printing money) versus issuing more Treasuries, there is such a global demand for Treasuries which has driven yields down so much that the US should be issuing debt rather than buying back debt. So, with this "window", right now, the global markets want US debt to flow through it.