Bernanke Lost in the Dark, Poole Shines Some LightSeptember 9th, 2011
No tallies were added to the job board in August and President Obama will be stepping in to help with a proposed plan of $447 billion in stimulus money. The plan will provide for unemployment benefits, payroll tax cuts, infrastructure, and security cash so teachers, firefighters, and cops don’t get laid off. (God forbid employees that aren’t economically justified become a part of the unemployed pool)
Let me remind the readers here today that we are currently over $14 trillion dollars in debt and the government has passed numerous stimulus packages that most likely need to be renamed, for false advertising purposes. As all of the failed policies pass us, one by one, the head of our central bank can’t even seem to grasp what is going on around him.
Bernanke this week admitted to being puzzled about consumer spending. He stated:
Seem? Bernanke, being the Chairman of the Federal Reserve I’m lead to believe that you are in touch with the economy. Being in denial about the real reasons why consumers aren’t spending scares the bee-jeez out of me. I hold no PhD in economics, nor have I run any sort of financial institution, but I can say that when I see my personal finances drying up, I save my money. So in this case when people in the US see their country’s balance sheet reach the height it has, while also providing no new-found confidence, they protect what they have.
Chairman Bernanke must be lost in the dark to think with the start of costly wars, stimulus packages like the one announced last night, and businesses closing down left and right from coast to coast, that consumer spending and confidence isn’t going to decrease. Unlike this system, some people understand logic and how 0 + 0 doesn’t = 14,000,000,000,000.
While Bernanke bumps into walls a Former Fed Official steps up to tell Bernanke his policies are not based on realistic measures. William Poole, the former chief executive of the St. Louis Fed Bank believes Bernanke is mistakenly paying too close attention to equity prices and not recognizing the threat of ‘astonishing’ inflation on the horizon. The best part is William Poole gave it to Bernanke straight:
“Fed can’t heal all the economy’s ills.”
Bernanke is convinced that the downgrade in consumer spending will subside once energy prices level out, then we’ll be on a faster track to economic recovery. Does anyone have a flash light for the Chairman?