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 ...
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.
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