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 ...
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.