Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Bernanke Admits He’s Clueless On Economy’s Soft Patch (America's Gone Galt)
Forbes ^ | 6-22-11 | Agustino Fontevecchia

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.

(Snip)

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 didn’t know exactly what was causing the slowdown, but that it would persist.

(Excerpt) Read more at blogs.forbes.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: bernanke; clueless; economy; obamunism
Anybody in business today KNOWS EXACTLY why U.S. Business has hunkered down, and isn't hiring.

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.

1 posted on 06/22/2011 2:34:03 PM PDT by tcrlaf
[ Post Reply | Private Reply | View Replies]

To: tcrlaf
It's really quite simple, Benny; we don't trust you bastards.
2 posted on 06/22/2011 2:36:12 PM PDT by E. Pluribus Unum (If Sarah Palin really was unelectable, state-run media would be begging the GOP to nominate her.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Exactly. He’s trying to be apolitical, but his “stupidity” speaks volumes.


3 posted on 06/22/2011 2:37:38 PM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

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.


4 posted on 06/22/2011 2:38:40 PM PDT by griswold3 (Character is destiny)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

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.


5 posted on 06/22/2011 2:39:45 PM PDT by dforest
[ Post Reply | Private Reply | To 1 | View Replies]

To: griswold3

“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.

/s/


6 posted on 06/22/2011 2:42:08 PM PDT by ripley
[ Post Reply | Private Reply | To 4 | View Replies]

To: tcrlaf

“...with the nutjobs in the Whitehouse...”

You’re being too nice.


7 posted on 06/22/2011 2:43:19 PM PDT by ripley
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf
Dear The Ben Bernak:

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.

8 posted on 06/22/2011 2:44:32 PM PDT by Paladin2
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

total government -—> total economy


9 posted on 06/22/2011 2:45:40 PM PDT by Paladin2
[ Post Reply | Private Reply | To 8 | View Replies]

To: tcrlaf
Bernanke may have seemed clueless today, but his boss can't have liked what he said.

I give him points for that.

10 posted on 06/22/2011 2:46:01 PM PDT by Siena Dreaming
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Translation: I want to blame the government and myself, but I can’t, so I’ll just say it’s a great mystery.


11 posted on 06/22/2011 2:47:38 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Oh well, no harm done Bernie. /s


12 posted on 06/22/2011 2:48:51 PM PDT by Huskrrrr
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Can we finally bury Keynes’ economic theories?


13 posted on 06/22/2011 2:50:26 PM PDT by Huskrrrr
[ Post Reply | Private Reply | To 1 | View Replies]

To: griswold3
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.

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?

14 posted on 06/22/2011 2:52:17 PM PDT by oldbrowser (Breitbart for a Pulitzer Prize)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Huskrrrr

Keynesian Economic theories have ONLY ever worked in the classroom, NEVER in real-life.


15 posted on 06/22/2011 2:54:21 PM PDT by tcrlaf (You can only lead a lib to the Truth, you can't make it think...)
[ Post Reply | Private Reply | To 13 | View Replies]

To: tcrlaf
while adding that the Fed still had several tools at its disposal to pump up the economy.

Can't go below 0% interest rates, so let's print mo money, mo money, mo money.

16 posted on 06/22/2011 2:55:10 PM PDT by Graybeard58
[ Post Reply | Private Reply | To 1 | View Replies]

To: griswold3
the longer this goes on, the more the bernanke’s incompetence is exposed.

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.

17 posted on 06/22/2011 3:00:39 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Graybeard58

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.


18 posted on 06/22/2011 3:00:47 PM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
[ Post Reply | Private Reply | To 16 | View Replies]

To: tcrlaf
Now I'm scared. If Bernacke is clueless and is blaming the republicans and thinks high spending and high taxes don't have anything to do with it, he should go, now.

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.

19 posted on 06/22/2011 3:01:29 PM PDT by Former Proud Canadian (We .. have a purpose .. no longer to please every dictator with a vote at the UN. PM Harper)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

I assume he’s also clueless on the soft patch between Obama’s ears...


20 posted on 06/22/2011 3:03:52 PM PDT by AngelesCrestHighway
[ Post Reply | Private Reply | To 1 | View Replies]

To: Paladin2

Dear the Paladin2

Must Laugh Out Loud. Where is the QEn!


21 posted on 06/22/2011 3:09:10 PM PDT by famousdayandyear
[ Post Reply | Private Reply | To 8 | View Replies]

To: tcrlaf

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.


22 posted on 06/22/2011 3:15:05 PM PDT by drangundsturm
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf
With the nutjobs in the White House, and his merry band of wanna-be Socialists and crooks, nobody knows what's coming next.

EXACTLY!

23 posted on 06/22/2011 3:17:00 PM PDT by kcvl
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

[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.


24 posted on 06/22/2011 3:19:43 PM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

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.


25 posted on 06/22/2011 3:21:52 PM PDT by JLS (How to turn a recession into a depression: elect a Dem president with a big majorities in Congress)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

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


26 posted on 06/22/2011 3:23:48 PM PDT by sten (fighting tyranny never goes out of style)
[ Post Reply | Private Reply | To 1 | View Replies]

To: kcvl

Hey, I’ve got a solution!

More moslems.

More communism.

That oughtta fix everything.


27 posted on 06/22/2011 3:29:01 PM PDT by LyinLibs (All moslems are somewhere on the killing-you spectrum)
[ Post Reply | Private Reply | To 23 | View Replies]

To: tcrlaf

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.


28 posted on 06/22/2011 3:31:55 PM PDT by nascarnation
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf
Then quit, you slimy frickin walrus-looking piece of sh!t! Get the **** off of my obstacle! Get the **** down off of my obstacle! NOW! MOVE IT! Or I'm going to rip your balls off, so you cannot contaminate the rest of the world! I will motivate you, Private Pyle, IF IT SHORT-DICKS EVERY CANNIBAL ON THE CONGO!
29 posted on 06/22/2011 3:32:27 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

Hey Bernanke, let this English major tell you what to do:

CUT TAXES
CUT REGULATION
CUT GOVERNMENT

Do all three and be a hero.


30 posted on 06/22/2011 3:33:18 PM PDT by struggle
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

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.


31 posted on 06/22/2011 3:33:52 PM PDT by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Siena Dreaming

For the fed head to say in a press conference that he’s clueless should be grounds for immediate termination.


32 posted on 06/22/2011 3:38:03 PM PDT by ichabod1 (Nuts; A house divided against itself cannot stand.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Graybeard58

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.


33 posted on 06/22/2011 3:47:32 PM PDT by ichabod1 (Nuts; A house divided against itself cannot stand.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: tcrlaf

When interest rate go negative and the ChiComs are left holding the bag, Bernanke will become “BurnYankee”.


34 posted on 06/22/2011 3:49:38 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf

“...Patting himself on the back, Bernanke once again defended his controversial programs of long-term asset purchases, dubbed QE1 and 2.  “People don’t 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?...


35 posted on 06/22/2011 3:51:12 PM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf
admitting that the recovery was weaker than expected

These "experts" live in a constant state of surprise.

36 posted on 06/22/2011 3:58:40 PM PDT by BinaryBoy (Stuck with a local RINO? Regardless of who you vote for, donate $$$ to a different district.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: JLS
Wow, you could not be more wrong.

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.

37 posted on 06/22/2011 4:14:49 PM PDT by DaisyCutter
[ Post Reply | Private Reply | To 25 | View Replies]

To: DaisyCutter; waterhill; ixtl
(((ping))) for later.
38 posted on 06/22/2011 4:20:21 PM PDT by Envisioning ( Call me a racist................, one more time......................)
[ Post Reply | Private Reply | To 37 | View Replies]

To: JLS
That is all they can do and that can not overcome bad tax, spending and regulatory policies that the FED has no influence on.

...then why doesn't he publicly state that is the case and throw Obama under the bus?

39 posted on 06/22/2011 4:34:43 PM PDT by Popman (Obama. First Marxist to turn a five year Marxist plan into a 4 year administration.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: tcrlaf
Bernanke graduated from Harvard, got a PhD from M.I.T. and was a professor at Princeton.

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.

40 posted on 06/22/2011 5:54:16 PM PDT by NoControllingLegalAuthority (What this country needs is an enema.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: NoControllingLegalAuthority
This is more evidence the Ivy League universities should be shut down and turned into something useful to society such as prisons.

Ag schools.

Always thought Connecticut A&M would be a great name for Yale.

41 posted on 06/22/2011 5:56:13 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 40 | View Replies]

To: tcrlaf

Buy a clue Benny...

http://tpmdc.talkingpointsmemo.com/2011/06/even-in-light-of-recent-controversy-nlrb-pushing-rules-to-facilitate-unionization.php


42 posted on 06/22/2011 6:03:17 PM PDT by mo ("If you understand, no explanation is needed; if you do not, no explanation is possible")
[ Post Reply | Private Reply | To 1 | View Replies]

To: tcrlaf
Brutally honest, Bernanke admitted that he had no clue what was actually causing the current fragility in the U.S. economic recovery.

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?

43 posted on 06/22/2011 7:20:15 PM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hoodat
you are assuming that the B's cognitive skills are average, or better.

Understand, liberalism is a mental disease, and thus affects the brain's ability to think rationally, and come to therefore rational conclusions.

44 posted on 06/22/2011 7:24:38 PM PDT by going hot (Happiness is a momma deuce)
[ Post Reply | Private Reply | To 43 | View Replies]

To: JLS
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.

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.

45 posted on 06/22/2011 7:29:32 PM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
[ Post Reply | Private Reply | To 25 | View Replies]

To: ichabod1

Maybe “clueless” will be his defense when he stands trail for this mess in the future...


46 posted on 06/22/2011 7:34:36 PM PDT by GOPJ (In times of universal deceit, telling the truth will be a revolutionary act. - - Orwell)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Hoodat

“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.


47 posted on 06/23/2011 11:13:50 PM PDT by JLS (How to turn a recession into a depression: elect a Dem president with a big majorities in Congress)
[ Post Reply | Private Reply | To 45 | View Replies]

To: DaisyCutter

“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.


48 posted on 06/23/2011 11:19:15 PM PDT by JLS (How to turn a recession into a depression: elect a Dem president with a big majorities in Congress)
[ Post Reply | Private Reply | To 37 | View Replies]

To: Popman

“...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.


49 posted on 06/23/2011 11:25:38 PM PDT by JLS (How to turn a recession into a depression: elect a Dem president with a big majorities in Congress)
[ Post Reply | Private Reply | To 39 | View Replies]

To: tcrlaf

Gold sez we’re gettin QE3.


50 posted on 07/13/2011 7:03:26 AM PDT by Aquamarine
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson