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| Bernanke said 2011 growth has slowed to less than a 2 percent in the first three months of this year. The Fed chairman said: ''most of the factors that account for the slower growth in the first quarter appear to us to be transitory.'' Right Mr. Chairman, 'transitory' in the same way the current administration is 'transitory'. The first won't end until the other ends. And I guess if we enter the worldwide socialism club, we'll never have to worry about growth again. All I know is that if they tell us we had 1.8% growth, it really means we had no growth or negative growth. The Fed chairman expressed some hope that the recent warning about danger to our credit rating would inspire Washington to action. Never let it be forgotten that the Administration tried to suppress that report, and never forget that absolutely none of our current problems are due to 'inaction' from Washington. Trillions of dollars worth of unsustainable debt is signaling that more QE is inevitable regardless of the jawboning rhetoric of Ben Bernanke who up until last week refused to admit that inflation even existed. When will Bernanke admit the Fed policy is a total failure? For the guy who cranks out new dollars on the Treasury's printing press, he spends a lot of time insisting the value of the dollar is someone else's responsibility. Can you say 'Kabuki theater?' So the Fed's inaugural 'meet the press' moment was in fact preparing the ground for the start of QE3. Bernanke has his 'tools' you know. It's all fiat money now, meaning that it has value only because the Fed says it does! So we have an unstable economy wobbling atop unsound money. Money that the government takes from taxpayers, or borrows with no intention of paying it back, or prints without end. The Fed will have printed about $1.8 trillion from the end of 2008 to the end of June, 2011 - partly to finance staggering federal government deficits of nearly $4.5 trillion over the three years. So the Fed's actions are undermining the dollar precisely because that's what the White House wants Countdown until Obama leaves Office: 629 days as of May 1, 2011.
------------------------------ Welcome to the 1970s: low growth, high inflation. And the Keynesians argued this can't happen. The whole QE2 pump-priming hasn't stimulated economic growth, but has stimulated inflation. It's all virtual money now! Hope and Change.... Tragic. |
