Intuition: high deficit -> more cash print -> more inflation -> higher bond yield -> higher equity. But no jobs. What do you think?
I think what the US government has figured out is that the whole rest of the world wants a strong dollar. Japan has spent $75 billion to prop up the dollar vs. the yen. All this to help exports to the US. The US figures if others will support the value of the dollar no matter how many they print - when the ducks are quacking feed them. Not a bad deal, they give us cars, machinery etc. and we give them pieces of paper (currency and bonds). As far as jobs - they recover AFTER employers are sure the economy has come back. This is in contrast to the stock market which moves BEFORE the economy recovers.