Along with the other Keynesian Professors Usurpers like:  Larry Summers, Christina Romer, Peter Orzag, and Austan Goolsbee aka “The Academics” –  (AP) — The economy’s continuing struggles aren’t just confounding ordinary Americans. They’ve also stumped the head of the Federal Reserve. Fed Chairman Ben Bernanke told reporters Wednesday that the central bank had been caught off guard by recent signs of deterioration in the economy. And he said the troubles could continue into next year.

“We don’t have a precise read on why this slower pace of growth is persisting,” Bernanke said. He said the weak housing market and problems in the banking system might be “more persistent than we thought.”

It was the Fed chief’s most explicit warning yet that the economy will face serious challenges next year. For several months, he had said the factors working against economic growth appeared to be “transitory.”
But at a press conference afterward, the second of what the Fed says will be regular question-and-answer sessions with reporters, Bernanke conceded the economy’s troubles are more puzzling and potentially more long-lasting than a pair of temporary shocks.  (full story)
Keynesian styled attempts at economic control has historically failed at every attempt yet the Obama administration continues its ridiculous march forward.  It is like the ‘Holy Grail’ of all things progressive.  But, to what end?  Just to prove once more that inherent large governmental control and over regulation on a private economy just does not work?   Keynesian economic theory only works in anti-capitalist socialistic style frameworks, and even then it is like a noose around the neck of those trapped within it.   We are mired with excessive regulation, the looming cloud of Obamacare costs, massive unpredictable regulatory compliances and insufferable unease.  Bailouts were deemed neccessary, they were not:

TARP – Failed because the losers were not permitted to collapse.  Bad decisions were rewarded in the financial sector.  “Too Big To Fail” was a lie.   (Keynesian spending)

ARRA  (aka Stimulus I) – Failed because states natural economic contraction was delayed and funds used to cover payrolls.   Public sector prop up.  (Keynesian spending)

Education Recovery Act (aka Stimulus II) – Failed because Public Sector Jobs cannot be afforded by the contracting economy beneath them.  It created a hole in the economy.  (Keynesian Spending)

HAMP (Federal Mortgage Modification) – Failed because the underlying economy is suffering from massive unemployment and ridiculously high “underemployment”.  (Keynesian spending)

Quantative Easing (QE1) – Failed because the economy is shrinking beneath the zero sum framework of low interest rates.   Buying debt, flooding money, begins to create inflation. (Keynesian Spending)

Quantative Easing (QE2) – Failed because the economic contraction beneath the zero sum framework of low interest rates still existed.  Inflation escalates.  Money in circulation gobbled up by higher prices faster than printing presses can provide money for circulation.   Chasing tail.  (Keynesian Spending)

Consider:

Keynesian Damage – Increasing federal debt will be a growing burden on government action, crowding out lawmakers’ ability to adopt tax and spending priorities in good times and reducing flexibility during recessions, all while making a fiscal crisis more likely and hindering long-term growth, the nonpartisan Congressional Budget Office said Wednesday.  In the annual Long-Term Budget Outlook, the legislature’s budget scorekeepers said that the ratio of debt to GDP this year will be 69 percent, 7 percentage points higher than last year. In 2021, the CBO predicts debt will reach 76 percent of GDP, but under a more dire — and more likely — scenario, the public debt will be 101 percent of GDP 10 years from now, well into the economic danger zone of 90 percent or more.
And What Do The DEMOCRATS Say?

Democrats call for new stimulus 

WASHINGTON, June 22 (Reuters) – Democratic leaders called on Wednesday for new spending and tax cuts to boost the sluggish U.S. economy, setting up a fresh hurdle for bipartisan efforts to head off a government debt default this summer.

Yup, you read that right.  Keynesian Democrats want to double down on stupid and spend even MORE money to “stimulate” the economic contraction that continues worsening because the Keynesians have spent so much money to avoid the economic contraction created by the Keynesian spending….  Got that?   /SD
PS.  Did you know you are not allowed to purchase over the counter gold any longer?  Thanks to Keynesians Barney Frank and Chris Dodd

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