Skip to comments.Bernanke Admits He’s Clueless On Economy’s Soft Patch (America's Gone Galt)
Posted on 06/22/2011 2:33:59 PM PDT by tcrlaf
In his second post-FOMC press conference, Fed Chairman Ben Bernanke touched on every topic, admitting that the recovery was weaker than expected and that beyond temporary factors like supply chain disruptions in Japan and high energy prices, he was at a loss as to what was causing the soft patch.
In a Q&A session with reporters, Bernanke said a disorderly default in Greece would have significant effects on the U.S. economy, while adding that the Fed still had several tools at its disposal to pump up the economy.
Brutally honest, Bernanke admitted that he had no clue what was actually causing the current fragility in the U.S. economic recovery.
While the FOMC statement assigned blame outside of the U.S., pointing at Japan along with rising food and oil prices, Bernanke was put on the spot by a reporter who noted the inconsistency behind that explanation and a lowering of long term forecasts.
Bernanke took the hit, admitting only some of the factors were temporary and that he didnt know exactly what was causing the slowdown, but that it would persist.
(Excerpt) Read more at blogs.forbes.com ...
With the nutjobs in the White House, and his merry band of wanna-be Socialists and crooks, nobody knows what's coming next. Business has Gone Galt.
And it won't end until the nightmare of Obama is forced from office.
Exactly. He’s trying to be apolitical, but his “stupidity” speaks volumes.
the longer this goes on, the more the bernanke’s incompetence is exposed.
We told them it wasn’t a liquidity crisis, but they wouldn’t listen.
Dumb Ben hasn’t taken a trip to the places we bugs go to. You can walk right up to a register, except for the first of the month, when the food stamp bennies go out.
God these people are clueless losers.
“We told them it wasn’t a liquidity crisis, but they wouldn’t listen.”
They’re all brilliant, dontcha know, and they know much more than any evil, greedy business type.
“...with the nutjobs in the Whitehouse...”
You’re being too nice.
Yes it's true, the last three recessions have taken much longer than the average of the previous 6 or 7 recessions. Why? Because the private sector has shrunk as a fraction of the total government.
The latest situation is definitely a vote by John Galt and his ilk to screw Zer0 and the direction he is headed. Screw The Goldman Sax.
total government -—> total economy
I give him points for that.
Translation: I want to blame the government and myself, but I can’t, so I’ll just say it’s a great mystery.
Oh well, no harm done Bernie. /s
Can we finally bury Keynes’ economic theories?
It is not incompetence, they have siphoned off trillions of dollars of America's wealth and now they pretend not to understand what happened.
It's time to quit sending pretty faces with nice hair smiles to Washington and get serious about elections. We have a bunch of bimbos in Washington, what did you think was going to happen?
Keynesian Economic theories have ONLY ever worked in the classroom, NEVER in real-life.
Can't go below 0% interest rates, so let's print mo money, mo money, mo money.
He may look incompetent to us, but his job is to make excuses for the government and bail them out. His bosses are probably very pleased.
They actually can go to a negative interest rate, and if things get bad enough in the rest of the world you might see it happen.
Or, he should ask anybody on FR what the problem is. For the fed chief, let me:
1. Uncertainty. Nobody knows what Hussein will do next, except that it will certainly be the wrong thing if you want to make a profit or hire somebody or start a business.
2. Corporate and individual taxes are too high now. The dems want to increase them, connect the dots, Ben.
3. What the economy killers cannot accomplish legislatively, they will attempt to do via the courts or the bureaucracy.
4. High energy prices, and the perception of even higher prices in the future are killing the economy on several levels. Hussein is committed to this policy.
I assume he’s also clueless on the soft patch between Obama’s ears...
Dear the Paladin2
Must Laugh Out Loud. Where is the QEn!
Good to know the guy who is creating trillions of dollars out of thin air now admits he’s just “winging” it.
No wonder that everytime this guy speaks the markets tank.
[Brutally honest, Bernanke admitted that he had no clue what was actually causing the current fragility in the U.S. economic recovery.]
If he ever looked in a mirror, perhaps a light would go on.
Keynesianism is a something for nothing perpetual motion machine. The fact that it does not work should be unsurprising.
And you expect Bernanke to publically state this? You expect Bernanke to criticize Obama policy and further undermine confidence in the economy?
Bernanke has been almost perfect in conducting monetary policy so far, but the hard part is coming. He has learned the lessons of the 1930s discovered by Friedman and Schwartz and provided the liquidity needed in the economy. He has not fallen for the baying wolves that inflation is coming and allowed deflation to happen. My one complaint is this silliness of coming up with a new term QE for increasing the money supply.
Hard to believe that a central banker who is generally learning from the lessons of Milton Friedman is being so roundly criticized by so called conservatives. One of the key lessons of Friedman is that printing more or less green pieces of paper does not create any more land labor and capital and lead to more output. Printing green pieces of paper can only affect the price level.
All the FED can do is provide a stable framework for the real economy to work. The FED under Bernanke is doing that. That is all they can do and that can not overcome bad tax, spending and regulatory policies that the FED has no influence on.
i was overseas for a bit. came home... and my country wasn’t what i left. hell, my home town where the shot heard round the world rang out... it’s not even the same.
i’m honestly at a loss on how to proceed if it doesn’t rectify.
so... i went Galt.
i won’t work to support people trying to undermine my country.
for now, i hold on tight while things continue to shake themselves apart... reminding any that’ll listen why the country is / was worth saving... in the hopes the grassroots will take hold and bring it back from the brink.
every day that passes... the brink seems ever closer
Hey, I’ve got a solution!
That oughtta fix everything.
Yeah I really think the 1st quarter of 2013 will be strong.
There will be a big post-Baraq surge in the economy.
If we can keep it a 2-way race for POTUS, Baraq is toast.
Hey Bernanke, let this English major tell you what to do:
Do all three and be a hero.
There is a major misunderstanding by many economists and politicians: when there is an economic downturn and the money supply shrinks, the government does not need to borrow money from future generations to stimulate the economy. It simply has to issue money and later prevent inflation by irresponsible further growth of the money supply. Heinz Aeschbach, MD
Well ...since the government won’t shrink the faux money supply...private industry will.
For the fed head to say in a press conference that he’s clueless should be grounds for immediate termination.
Printing the money is the elephant in the room, in my O. When they print money it’s like the “I drink your meeeelkshake” in the movie There Will Be Blood.
When interest rate go negative and the ChiComs are left holding the bag, Bernanke will become “BurnYankee”.
“...Patting himself on the back, Bernanke once again defended his controversial programs of long-term asset purchases, dubbed QE1 and 2. People dont appreciate how pernicious deflation could be for the economy, said the chairman, who then said QE2 saved the economy from deflation and was completely justified at the time.”
Bernanke ever take a look at the housing market?...
These "experts" live in a constant state of surprise.
There was no liquidity problem. There was a problem of excessive debt. Attempting to solve a problem created by debt by issuing more debt will only result in disaster.
The Fed is explicitly enabling the irresponsible spending by congress by keeping interest rates artificially low via monetizing the debt. Incidentally he got up in front of Congress and flat out lied by saying he was doing no such thing. That is exactly what QE was. And it resulted in massive price increases in staples such as energy and food, the things we all need in order to survive. Inflation isn't coming... it's already here.
The Fed has debased the dollar massively over the last few years in order to pretend that the stock markets were going up. But in fact, there has been a direct correlation between the devaluation of the dollar, and the increases in the market indices.
But please, go ahead and continue to applaud the Fed for creating an asset stripping scheme that steals money from the middle class and concentrates it in the hands of bankers that have repeatedly broken the law, laws that the Fed has regulatory responsibility for.
...then why doesn't he publicly state that is the case and throw Obama under the bus?
Of course the bastard is clueless.
This is more evidence the Ivy League universities should be shut down and turned into something useful to society such as prisons.
This declining, bankrupt country is run by nothing but these clueless bastards from Ivy League backgrounds.
We'd be better off being led by the first 500 names in the phone book.
Always thought Connecticut A&M would be a great name for Yale.
Buy a clue Benny...
That statement alone is reason enough for him to tender his resignation effective immediately. Even a student at a government school could figure out the answer to that question. $1.6 trillion a year is being taken out of the hands of those who produce wealth and given to those that don't produce wealth. This ain't rocket science here. Is he really that obtuse?
Understand, liberalism is a mental disease, and thus affects the brain's ability to think rationally, and come to therefore rational conclusions.
Printing pieces of paper also transfers massive quantities of wealth from the hands of creditors and into the hands of debtors. It punishes those who were responsible, who amassed savings and created the driving engine for investors - capital. It rewards those who were irresponsible, who spent recklessly and amassed debts by consuming investment capital without return. Inflation is insidiously evil. And it is the tool this Administration will use to transfer wealth from those who have earned it to those who by their own work ethic will never ever have it otherwise.
Maybe “clueless” will be his defense when he stands trail for this mess in the future...
“Printing pieces of paper also transfers massive quantities of wealth from the hands of creditors and into the hands of debtors. “
Not unless there is inflation which there is not yet. And really not unless their is UNEXPECTED inflation. Only if the inflation is not reflected in the interest rate, ie higher than the expected inflation part of the interest rate, will that transfer take place.
As I said in my first post, the toughest part for Bernanke is coming, but so far he has headed off any deflation without causing an inflation.
“There was no liquidity problem.”
There have not been liquidity problems this contraction because the FED led by Bernanke acted in such a timely manner. You of course are spreading false worry that led to the 1930s FED raising reserve requirements in 1937 which led to the second 1930s recession that turned the entire 1930s into a lost decade economically.
“...then why doesn’t he publicly state that is the case and throw Obama under the bus?”
1. He does not want to undermine confidence in the economy any more than it Obama’s policies already have. Less confidence in the economy would only make things worse.
2. He does not want the independent FED to seem partisan. Also the economic illiterates of the Dim party would view any truthful statement about how harmful Obama’s spending, taxation and regulation are to the economy as the Chairman of the FED going partisan. It is pretty important in the future for the US to continue to have a non-partisan central bank. So I think for this reason Bernanke is smart to leave pointing out Obama’s economic ignorance to other political commentators and economists.
So Bernanke gains nothing by stating the obvious and elementary truth about Obama economic policies and he could do harm to the economy by doing so.
Gold sez we’re gettin QE3.