The latest consumer data from the CMI, which shows a surprising surge in activity (to a nearly non-contraction level), and interesting musings on interventionism. It's not clear what can be gleaned from the consumer data, as it is hard to see much of an economic resurgence out there (indeed, we see data indicating further stagnation if not deterioration in most areas such as jobs), but we could be getting a "recession bounce" like we did in '08-'09.

The danger is that an "unthinkable" expansion of corporatism will be seen as the lessor of evils necessary to forestall either a deflationary depression or a crushing episode of hyper-inflation. In fact, the growth record experienced by the Chinese over the past two decades may prove to be an irresistible prescription for how to prevent a Simpson-Bowles induced depression -- fully justified by a national economic emergency.

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