For American workers, the Great Recession never ended.
And now we will add inflation to the equation, but hey! The Stock market is doing great!
What could go wrong?
Posted on 09/14/2012 3:47:43 PM PDT by zeestephen
President Obama and his fellow Democrats spent their convention down in Charlotte trying to persuade voters that the U.S. economy is on the right track...But yesterday, Federal Reserve Chairman Ben Bernanke finally admitted what most folks outside Washington already knew: The economy, three years into a supposed recovery, remains in terrible shape...
(Excerpt) Read more at aei-ideas.org ...
No journalist asked the next logical question...
Does that mean Obama created just 750,000 jobs?
******** ********
The common wisdom among the punditocracy is that the Federal Reserve’s announcement of its new, open-ended bond-buying program will provide a big boost to President Obama’s reelection by juicing the stock market and economy.
Actually, however, the Fed’s monetary move could give a huge messaging boost to Mitt Romney if his campaign plays it right.
Imagine this speech by the Republican nominee:
President Obama and his fellow Democrats spent their convention down in Charlotte trying to persuade voters that the U.S. economy is on the right track, that the president’s policies are working, that no president could have done a better job with the mess he inherited, that all that could be done has been done by this administration, that we must stay the course.
But yesterday, Federal Reserve Chairman Ben Bernanke finally admitted what most folks outside Washington already knew: The economy, three years into a supposed recovery, remains in terrible shape and is unlikely to get much better anytime soon.
In fact, Bernanke said there’s such little hope for improvement that he and the Fed are going to embark on a radical new experiment in money printing in order to try and do something, anything, to boost growth and create jobs.
In short, the Fed chairman’s move clearly suggested Obamanomics isn’t working today and is unlikely to work any better tomorrow. We cannot stay the course. And since Washington won’t act, he will.
But let’s take a step back for a second and recall how we got here.
In late 2007, a collapsed housing bubble helped push America into its worst economic downturn since the Great Depression. Millions lost their jobs; millions more saw their savings disappear and salaries cut.
Now, the Great Recession officially ended more than three years ago in the summer of 2009 — at least that’s what the economists who get to decide such things tell us.
So for the past three years, we have officially been in an economic recovery. But although the economy has been growing rather than shrinking, by almost all other measures we’re still in a bad recession. Incomes are lower today than they were when the supposed recovery started. In fact, incomes have fallen faster during the recovery than during the recession itself.
And although the economy has slowly been adding jobs, the pace has been so miserably slow that unemployment has been stuck above 8% for 43 straight months, which hasn’t happened since the 1930s.
And if government number counters quit ignoring all those discouraged Americans who want a job but have given up looking, the unemployment rate would be over 11%.
For American workers, the Great Recession never ended.
Now, all those numbers I just mentioned? You didn’t hear any of them at the Democrats’ big party down in Charlotte — not from Barack Obama or Joe Biden or Bill Clinton. They also forget to mention that the president’s own economists said his policies, including the stimulus, would result in an unemployment rate this year of below 6%, not above 8%. And those same economists said the economy would be booming right now, growing at more than 4%. Instead it is growing at less than 2% — so slowly in fact, that if anything goes wrong, we’ll be right back in an official recession.
By Obama’s own standards, Obamanomics has failed. After wasting four years of precious time implementing policies that have never worked in the past, the American economy remains broken. I know it, you know it, Ben Bernanke knows it. Maybe, deep down, even President Obama knows it.
My fellow Americans, trillion dollar deficits and Fed money printing is no way to rebuild the American economy. After all, too much debt and too much cheap money is how we got into this mess in the first place.
So I propose a different way. First, we should look at what’s worked in the past.
Like JFK and Ronald Reagan, we should cut tax rates on business and entrepreneurs and small business and the middle class. And like Bill Clinton, we should reduce government spending. Cutting taxes and reducing spending will shift more resources back into the private sector where they can be used more productively than by Washington.
Second, we should look at what hasn’t worked in the past and stop doing that. Crony capitalism doesn’t work, whether it’s subsidies for pet presidential projects like Solyndra or for Obama campaign contributors like big banks. So as president, I will reform the tax code so that it promotes economic growth, not special favors and loopholes.
Third, ….
Well, Team Romney can finish the rest if it wants. This is still a close presidential race and winnable for the Republicans. But they need to seize opportunities like this one when they come along. Time is running out.
If Romney can't win in this environment, something’s wrong.
Obama didnt creat any jobs in USA except government jobs. no private sector.
Positive post!!!
When asked if he would like his pizza cut into 6 or 8 pieces, Bernanke replied “8, I’m feeling really hungry today.
On The Drudge Report...
FLASH: US credit rating downgraded again...
PUMPING BLAMED...
Fed risks political fallout...
Fed risks political fallout from QE3
http://www.ft.com/cms/s/0/b7de9070-fe77-11e1-8028-00144feabdc0.html#axzz26UIntj3T
ABC just showed the stock market since the QE3. Then they showed how much your 401K has risen making it look so exciting.
For American workers, the Great Recession never ended.
And now we will add inflation to the equation, but hey! The Stock market is doing great!
What could go wrong?
Thanks, SkyDancer.
It may have risen, but it won’t buy you as much as before, so in real terms, it is worth less.
You’re Welcome. I had another way of looking at it. Say you have five credit cards. There’s nothing owed on four of them. One has a balance of $5,000. What you do is take $4,000 of that and spread it out over the other four. Now you only owe $1,000 separately not a big chunk like $5,000. That’s how the Fed sees it.
“It may have risen, but it won’t buy you as much as before, so in real terms, it is worth less.”
And vast majority of people who know NOTHING about the time value of money will have visions of Obama sugar plums dancing in their heads.
“This seems like desperation bazooka tactics. Specifically, the Fed is in a panic state over jobs.”
http://globaleconomicanalysis.blogspot.com/2012/09/panic.html
I despise links that go to web sites you have to register and/or pay to access the article...
I had to do neither...
If you go to Drudge you can access it there...
Thanks!
It is time that Romney agrees with Ron Paul and calls for an audit of the FED. I favor getting rid of the FED.
I like the way your mind works.
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