Great Poem from N. Greg Mankiw’s Blog

Original Link: http://gregmankiw.blogspot.com/2010/11/qe2-ditty.html

It's Called Quantitative Easing

I heard it in the headlines
It's news all over town
We might be double dippin'
Green shoots have all turned brown

It's a balance sheet recession
With a housing overhang
But they've got a brand new program
And it will start you with a bang

And it's called, quantitative easing
They say results are always pleasing.
When liquidity all starts freezing
Just warm things up with quantitative easing

I will say it straight and simple
It's clear, just like a bell
There's some long term bonds to buy
There's some short term bonds to sell

Don't talk about the good times
Don't ask me where they went
Just move your inflation target
On up to three point five per cent

And it's called, quantitative easing
This ain't no joke, it ain't no teasing
When the GDP starts wheezing
Treat with a shot of quantitative easing

Good and magic things will happen
It might take a week or three
Unemployment plunging downward
Recovery shaped just like a V

You'll see Nobels at the Treasury
There'll be rock stars at the Fed
It'll take hair off of Krugman's face
Put it on top of Ken Rogoff's head

And it's called, quantitative easin'
This ain't no scam, so don't call no policeman
When the engine of commerce starts seizin'
Just add a quart or quantitative easin'

Show no mercy to the critics
Don't let no one stop your nerve
You can mock Ricardian Equivalence
You can laugh at the Laffer Curve

Tell that guy at the Minneapolis Fed
To shut up, or you'll break his legs
And if the Bond Vigilantes don't like it?
Well, they can go suck eggs

And it's called quantitative easin'
You know I say this for a reason
When the economy just sits there squeezing
Loosen things up with quantitative easing

Case Study California: The Rising Power of the Latino Voter

As California voters become older, less white, and more independent, Latino voters have grown to become one of the most important voting groups in the state.

Over the past 30 years, the Latino voters grew from 8% of the voting population to 21%. The sheer number of Latino voters in the state makes these voters pivotal for any candidate who wishes to win in a statewide race. During this same period, the number of registered Democrats dropped from nearly 60% of the electorate to about 45% of voters. Among Latinos, Democrats hold a 3 to 1 registration advantage over the Republicans; however, since Latino voters are 28% less likely to vote when compared to the voting population as a whole, Democrats must aggressively court these voters in order to ensure their support at the ballot box. Despite the Democratic registration, advantage in this group, past history reveals Latino voters trend toward conservative stances on divisive issues such as national defense, abortion, and gay marriage. George W. Bush's ability to win over 44% of Latino voters nationwide in 2004, and the Latino community's general support for California Proposition 8 in 2008 substantiate this traditionalist preference.

The events of the state's 2010 Gubernatorial Election vividly demonstrate the power of California Latinos clearly. Both Republican Meg Whitman and Jerry Brown have aggressively courted these voters with Spanish language advertisements and campaign literature, as well as extensive Latino-focused voter registration and Get-Out-The-Vote operations. They made history on October 2, when the candidates met on Univision, a Spanish language cable network, for the first bilingual debate in California history. The debate focused on issues ranging from healthcare, immigration and education, to jobs and the economy. The dominant topic of the debate—the issue that may propel Brown to victory among Latino voters and by extension the election at large—was the story of Whitman's former housekeeper Nicky Diaz Santillan. Diaz Santillan, an illegal immigrant, worked for Whitman for 9 years using false immigration documentation. When Diaz Santillan revealed her illegal immigrant status to Whitman last year, Whitman promptly fired Diaz Santillan. Upon the story's September revelation, Latino support propelled former Governor Brown to a 5% lead despite a statistical tie among non-Hispanic voters. Given his reliance on the support of Latino voters, Governor Brown's victory or defeat will rely upon his ability to translate his hefty Latino backing into actual voter turnout on November 2.