Isn’t a recession officially over after 2 consecutive quarters of GDP growth?
Yes and Bernanke is the captain of the Titanic with icebergs looming on the horizon.
Bah! Who needs “officially”, they can claim we are in a recession when the GDP doesn’t show it and can claim it’s over when it isn’t. The only thing that matters about a recession is what letter is by the President’s name. D-good, R-bad. (and now racist).
It’s over when the television tells you its over now. That’s the new standard.
Bernacke is simply saying what he thinks he must to keep the stock market from tanking. He’s the Baghdad Bob of the financial industry.
That said, the chickens are coming home to roost. There is a reason gold is up. That reason is that the country is carrying way to much debt. This will eventually result in inflation as the government begins to enough paper so people can pay for things. Gold’s value is established independent of any particular economy. Hence, it’s value will be stable and/or rise in an inflationary environment.
If Onada’s present economic policies are not rescinded, it is inevitable that inflation will come. Along with that will come a time when Americans cannot afford even goods from China. When the Chinese economy begins to falter better watch out.
One other little tidbit. My son works in the power generation industry. The industry—not just his company—is experiencing a 20% decline in demand. They are expecting a further decline of at least 10% over the next one-two years. His company is doing an analysis as to the economic viability of moth balling plants or simply operating them at minimal levels.
That’s not a political analysis. That’s a business analysis. So what does the power industry know that Bernacke does not? Oh, but we were told yesterday by the alleged president’s erstwhile press secretary that The Messiah did not know anything about the DC Tea Party.
If a Republican is in the WH and the GOP controls Congress, then the economy stinks after 2 consecutive quarters of GDP growth.