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Bill USA

(6,436 posts)
Mon Jul 23, 2012, 07:55 PM Jul 2012

Federal Reserve Chairman Says Economy Is Hurting, Refuses To Do Anything About It

http://thinkprogress.org/economy/2012/07/18/542251/bernanke-economy-hurting/

Federal Reserve Chairman Ben Bernanke spent the last two days testifying before Congress on the state of the U.S. economy. During his appearance before the House Financial Services Committee today, Bernanke noted that the economy is still recovering quite slowly:


The pace of economic recovery appears to have slowed during the first half of this year, with real gross domestic product (GDP) likely having risen at only a modest pace. In the labor market, the rate of job gains has diminished recently, and, following a period of improvement, the unemployment rate has been little changed at an elevated level since January.



But Bernanke then added that the Fed is not really going to do anything about it, even though it’s mandated to strive for full employment:


In its [most recent] statement, the [Federal Open Markets Committee] noted that it was prepared to take further action as appropriate to promote stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.


This is, sadly, nothing new. As economist Chad Stone showed in U.S. News & World Report, the Fed has consistently failed in its obligation to fight unemployment:




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Federal Reserve Chairman Says Economy Is Hurting, Refuses To Do Anything About It (Original Post) Bill USA Jul 2012 OP
Thom Hartman has asked is Bernanke hoping for a Romney presidency? sasha031 Jul 2012 #1
W.t.h. can he do snot Jul 2012 #2
Spam deleted by Hassin Bin Sober (MIR Team) porton22 Jul 2012 #3

snot

(10,478 posts)
2. W.t.h. can he do
Mon Jul 23, 2012, 08:47 PM
Jul 2012

Last edited Mon Jul 23, 2012, 11:07 PM - Edit history (1)

besides print more money, which i.m.h.o. would probably not help any more than it already has -- which is damn little -- because it's not going to people who need it and would spend it?

Congress needs to try a stimulus based on the trickle UP theory for a change, including helping States meet their budgets to avoid the impending layoffs of more firemen and teachers, as well as impending firesale sell-offs of public infrastructure, and adopt a WPA-style program.

On edit: Sorry, I should have gone and read the article first. But my opinion stands. While I agree with the lack of confidence in Bernanke, the article relied on re- "6 things" is, i.m.h.o., moronic. Four of the 6 things are basically the same thing, printing money, which we've already done plenty of, and the other things would be unlikely to have significant effect.

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