For those not familiar with the Taylor rule, it is a suggestion that we set the Fed interest rates according to gross national product and inflation.  The problem with that is that gross national product can be limited by things other than money supply, most recently that has been energy supplies.  In this situation, we can simultaneously fail both targets no matter what we set the interest rate to.

     We’ve seen a pattern for the last couple of decades where the economy grows, energy consumption expands, energy prices sky rocket, the economy shrinks.  As much as I’d like to see an end to the fed, the Taylor rule, replacing the fed with a simple algorithm isn’t going to suffice as a substitute.

     2014 was the first year that we saw economy growth world wide without a corresponding increase in carbon dioxide.  This is because we finally have enough renewable capacity in place that it was able to provide additional energy needed for that growth to occur.  I am hopeful that this trend will continue.

     If it does, and then we can have high gross national product grown, low unemployment, and low inflation simultaneously.  However, we still have the problem of .1% of the population owning more than 50% of the wealth.  That somehow has to be addressed and I am confident will be.  It’s just a question of whether it will be addressed peacefully or violently.