Steve Benen: Bernanke: Cut Spending, But Now Now

[flpoljunkie]

Are you listening, Republican leadership? No, they apparently are not. They seem perfectly willing to send the country back into recession to try to beat Barack Obama and take back the Senate. The Dems need to hammer this home. So far, they have not.

June 08, 2011 8:30 AM

Bernanke: cut spending, but not now

Federal Reserve Chairman Ben Bernanke spoke yesterday at the International Monetary Conference in Atlanta, and generally stuck to a predictable script. He realizes the recovery is “frustratingly slow”; he doesn’t intend to do anything about it; and he expects stronger growth in the second half of 2011, as Japan recovers and gas prices come down.

But it seems many of the reports on Bernanke’s remarks buried the lede.

The Fed chairman stressed the importance of putting “the federal government’s finances on a sustainable trajectory,” but quickly added that “a sharp fiscal consolidation focused on the very near term could be self-defeating,” and would likely “undercut the still-fragile recovery.”

In other words, Bernanke would like to see cuts, but he doesn’t want them now. Indeed, here we have a Republican Fed chairman effectively arguing that the congressional Republican agenda is putting the economy in jeopardy. As Michael Grunwald put it, Bernanke “may be a Republican, but he’s no Tea Party Republican.”

more...

http://www.washingtonmonthly.com/political-animal/2011_06/bernanke_cut_spending_but_not030117.php

[Tippy]

1. K&R...For Bernake's wisdom on this

[OHdem10]

2. Bernanke has been saying this all year.

The Democrats on the Hill and President Obama
should be out there on TV explaining the economic
theory behind Bernake's call. They have to do
this over and over so the majority of Americans
get the Message.

If they are not willing to do this, then they
are standing behind the Hooverites and their
Conservative Economic Fundamentalism.

The Democrats permit the Republicans to set the
agenda, that is Republicans play offense setting
up what will be discussed. The Republicans have
pivoted from their messup on Medicare to concentrating
on Jobs. At least they will talk jobs. The Democrats
are always playing catch up. On this one if they
believe Bernanke is correct, they better get themselves
out there defending it.

The Truth is NEITHER PARTY is concerned about the
people out of work at the present. They are doing
long term programs. The People are saying I am glad
you are so concerned about my children, what in
the hell do you plan to do about the present?

Yesterday even, Obama said I have these long term
projects. Ryan's plan is the long term to protect
our children.

This is what makes Obama come across as aloof and
out of touch. Mr. President, we have millions
out of work and they can cause a drag that puts
us back into a Double Dip.

[flpoljunkie]

3. Yes, he has. It cannot be repeated often enough.