In his latest letter, Van Hoisington suggests that the economy is worse off today than it was prior to the onset of the previous recession and he goes on to predicts that negative economic growth will probably be registered in the U.S. during the fourth quarter of 2011, and in subsequent quarters in 2012. He cites reasons including those being partially caused by monetary and fiscal actions and excessive indebtedness, this contraction has been further aggravated by three current cyclical  developments: a) declining productivity, b) elevated inventory investment, and c) contracting real wage income.”

Some additional views from the letter;

• QE2 backfired as food and fuel inflation.
• Operation Twist may be counterproductive.
• Tax increases are retarding growth.

Read the full Q3 letter here;

Van Hoisington Letter, Q3 2011