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Ben Bernanke (Wikipedia Commons)
In yesterday's column, Paul Krugman made a prediction:
As I write this, investors around the world are anxiously awaiting Ben Bernanke’s speech at the annual Fed gathering at Jackson Hole, Wyo. They want to know whether Mr. Bernanke, the chairman of the Federal Reserve, will unveil new policies that might lift the U.S. economy out of what is looking more and more like a quasi-permanent state of depressed demand and high unemployment.

But I’ll be shocked if Mr. Bernanke proposes anything significant — that is, anything likely to make any serious dent in unemployment or offer any serious boost to growth.

His prediction was based on politics, the "political firestorm" that would ensue if Bernanke prescribed the kind of action he himself recommended for Japan in 2000, which included "targeting a higher rate of inflation and welcoming a weaker dollar," to encourage borrowing and spending. Turns out, Krugman is a pretty good prognosticator.

The Federal Reserve chairman, Ben S. Bernanke, said Friday that the economy is recovering and the nation’s long-term prospects remained strong, an upbeat assessment that offered little indication of any plans for additional measures to boost short-term growth.[...]

"With respect to longer-run prospects, however, my own view is more optimistic," Mr. Bernanke said in his prepared remarks. "The growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years."

It makes one wonder if Bernanke is reading the same news as the rest of us. He was "careful to note that the nation faces significant challenges, including massive unemployment and an unsustainable federal debt," but essentially said that the Fed has done its part, now it's up to government, which he markedly criticized, essentially proving Krugman's assertion that politics was standing in the way of real action from the Fed.

Indeed, Mr. Bernanke devoted much of his speech to fiscal policy, rather than the monetary policy that is the Fed’s primary responsibility. And he offered an unusual critique of the government’s handling of those issues.

"The country would be well-served by a better process for making fiscal decisions," he said, noting that the political battle over raising the debt-ceiling had disrupted the financial markets "and probably the economy as well."

Political threats surely aren't the only reason Bernanke is refusing to take any of the actions that are indeed available to him, options he's talked about before. But it's hard not to get the distinct impression that the GOP—Rick Perry and his direct threats to Bernanke, the House teabaggers and their hostage-taking of the debt ceiling—are calling the shots, and driving this economy to further ruin for the sole purpose of destroying this presidency.

Originally posted to Joan McCarter on Fri Aug 26, 2011 at 08:24 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  Tip Jar (15+ / 0-)

    "There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning." —Warren Buffett

    by Joan McCarter on Fri Aug 26, 2011 at 08:24:30 AM PDT

    •  teabaggers aren't responsible for everything (1+ / 0-)
      Recommended by:
      Clem Yeobright
      But it's hard not to get the distinct impression that the GOP—Rick Perry and his direct threats to Bernanke, the House teabaggers and their hostage-taking of the debt ceiling—are calling the shots, and driving this economy to further ruin for the sole purpose of destroying this presidency.

      and i absolutely do not believe this line of thinking makes any sense.

      FIRE has its own agenda which has nothing to do with tea or baggers or anything remotely moral.

      "Until we know how to safely dispose of the radioactive materials generated by nuclear plants, we should postpone these activities so as not to cause further harm to future generations" Dr Shoji Sawada

      by BlueDragon on Fri Aug 26, 2011 at 09:22:19 AM PDT

      [ Parent ]

      •  I buy Maher's Donner Party concept here (1+ / 0-)
        Recommended by:
        MJB

        While FIRE was happy to have the tea baggers work their mischief in the last cycle, I don't see how this monetary policy workes to FIRE's benefit.   As per Maher:

        If we have learned anything from this moronic debt ceiling debacle, its that government is a lot like the subway. People tend to give the crazy person what he wants.

        The reason John Boehner can brag that he got 98% of what he demanded was that he had an ace card in the 60 odd tea partiers in his caucus. I don't say 60 odd because I'm not sure how many there are. There are 60 odd and they are odd. And Bohener could point to them and say, "Look, these guys don't give a fuck." They don't want compromise and solutions. The only response they are going for is " Oh shit how'd Skeeter git a gun."

        Yes, cause we've all seen that movie where some psycho has a gun to a woman's head and the rookie hostage negotiator isn't getting anywhere, so they bring in Mel Gibson. Who can relate to the psycho because hes a psycho. Thats what the Democrats need. Their own Mel Gibson.


        He went on to note:
        And don't tell me that there all ready is such an entity on the left. That its the ACLU or Greenpeace or MoveON.org. OH Please. Those are educated people. Lawyers and scientists. We need loud mouths and bad dressers. Who can match the tea people maniac for maniac and say to them "You think you can be pea-brained, single-minded, and purple with rage? Well the Donner party is a dog that can bark at a pine cone for nine days and not get tired."

        You say no new taxes on the rich, we say tax the rich at a 100%.

        You call for a constitutional amendment banning abortion, we call for a federal funded partial birth abortions at the drive-through at McDonalds.

        You want Reagan on the fifty dollar bill, we insist on Jeanine Garafalo.

        Because apparently crazy is the new sensible. And we will not lose the war of bad ideas.

        When a potential future POTUS accuses the  Fed Chair of treason, it gets the Chair's attention.  Unless we act similarly from the opposite direction, we'll continue to lose.  I wish I could make Bill Maher party chair tomorrow, but, in hindsight, it was a fluke that Dean got the job.

        Some men see things as they are and ask why. I dream of things that never were and ask why not?

        by RFK Lives on Fri Aug 26, 2011 at 10:19:22 AM PDT

        [ Parent ]

        •  Bernanke gave his wallet to the crazies (1+ / 0-)
          Recommended by:
          apimomfan2

          ... Except, the analogy is a little off.  

          Bernanke really gave our economy to Rick Perry and the crazies, who are hellbent on ensuring that, in November 2012, our economy is as bad as it is today or worse.  They want us all to go to hell in a handbasket because all they care about is getting rid of Obama.  Bernanke is happy to help them out.

          Please help to fight hunger with a donation to Feeding America.

          by MJB on Fri Aug 26, 2011 at 10:41:07 AM PDT

          [ Parent ]

    •  Joan: It's actually "today's column" (0+ / 0-)

      Except that, since this may not show up on the front page until tomorrow - or next Tuesday - it's very hard to say when on Daily Kos these days 'today' is ...

      Am I right, or am I right? - The Singing Detective

      by Clem Yeobright on Fri Aug 26, 2011 at 10:06:22 AM PDT

      [ Parent ]

  •  Joan, this is different from what CNN reports (3+ / 0-)
    Recommended by:
    krllos, Aquarius40, Sybil Liberty
    In a much-anticipated speech to leading economists in Jackson Hole, Wyoming, the chairman announced that a one-day meeting of the Fed, originally set for Sept. 20, is being expanded to two days "to allow a fuller discussion" of what the Fed should do to respond to "disappointing" growth.

    "The Federal Reserve will certainly do all that it can to help restore high rates of growth and employment," he promised.

    But Bernanke gave few specifics -- and the speech was notable for its limited discussion of Federal Reserve policy.

    So, it looks like he punted, but only until September 20th--perhaps there was disagreement among the Fed's board on how to proceed, thus, the future extended meeting next month.

    However, I don't read that to mean that the Fed will do nothing, as you seem to say...

    The mediator between head and hands must be the heart. Epigram from Metropolis

    by dizzydean on Fri Aug 26, 2011 at 08:41:41 AM PDT

    •  Here's what he said: (3+ / 0-)
      Recommended by:
      dizzydean, krllos, Edger
      “Most of the economic policies that support robust economic growth in the long run are outside the province of the central bank,” he said.

      And that's why the dollar is surging as investors run towards treasuries.

      •  Well, he is right, but I got the impression (0+ / 0-)

        that options like the QE that was being discussed is not off the table yet...I suppose we'll have to see when September rolls around.

        On the other hand, does anyone see this Congress doing anything useful between now and the holiday breaks?  

        The mediator between head and hands must be the heart. Epigram from Metropolis

        by dizzydean on Fri Aug 26, 2011 at 09:01:37 AM PDT

        [ Parent ]

  •  His point about fiscal policy is correct (4+ / 0-)
    Recommended by:
    dizzydean, J M F, filby, JC from IA

    That's what's needed.  Not to say that there aren't monetary actions that could be taken.  But the ball is in the fiscal court.

  •  Punt is exactly the word I would use. (4+ / 0-)

    Shrugged shoulders. Tossed the hot potato. You name it.

  •  Go figure (3+ / 0-)
    Recommended by:
    Gooserock, cybersaur, apimomfan2

    Bernanke's a Republican, after all.

  •  Conservatives Told Him In Public It'd Be Outrageou (3+ / 0-)
    Recommended by:
    filby, tmo, apimomfan2

    sly political if he did anything to help the economy while elections are in the offing.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Fri Aug 26, 2011 at 09:01:33 AM PDT

  •  Yep, they won (1+ / 0-)
    Recommended by:
    davethefave

    They used an economic downturn and a rightward drifting country to destroy the economy just to get Obama.

    August 16, 2011: Rick Perry will win the Presidency in 2012.

    by NoFortunateSon on Fri Aug 26, 2011 at 09:04:36 AM PDT

  •  Isn't ... (1+ / 0-)
    Recommended by:
    cybersaur

    ...Bernanke a criminal?

    I'm not trying to start something.

    I just thought I heard Matt Taibbi once say that Bernanke is a criminal.

    If I'm wrong on this, please correct me.

    When Fascism comes to America it will be wrapped in excess body fat and carrying a misspelled sign.

    by wyvern on Fri Aug 26, 2011 at 09:07:04 AM PDT

    •  Well, he's not a hero (0+ / 0-)

      just because Rick Perry doesn't like him.  The fed has done very little for Main St. anyway to date.  His saying there is nothing it can or will do just shows monetary policy goes so far.  At some point planners and not just manipulators have to make decisions.  I think that's the point.

      Ordinary political process is dead. The Supreme Court killed it. In Chambers. With a gavel.

      by Publius2008 on Fri Aug 26, 2011 at 09:13:09 AM PDT

      [ Parent ]

  •  Oh, there'll be another QE soon enough. Sigh. (0+ / 0-)

    There are moments when the body is as numinous as words, days that are the good flesh continuing. -- Robert Hass

    by srkp23 on Fri Aug 26, 2011 at 09:07:09 AM PDT

  •  Fed can't and won't do anything. (3+ / 0-)

    We are left with dysfunctional DC, as Bernanke acknowledges. Even if it becomes more "functional" under Perry and the republicans, it is almost assured to be a disaster. We are so screwed.

    I really grieve for this country, one that can do no better  four years after his disaster than propose the same lame brain George Bush Jr.--sans the name--as again being our next president.

    Ordinary political process is dead. The Supreme Court killed it. In Chambers. With a gavel.

    by Publius2008 on Fri Aug 26, 2011 at 09:08:25 AM PDT

  •  The Fed won't help and neither will Obama (3+ / 0-)
    Recommended by:
    Clem Yeobright, cybersaur, apimomfan2

    Krugman hit the nail on the head.
    We have to look elsewhere for possibilities.

  •  And yet Bernanke (1+ / 0-)
    Recommended by:
    apimomfan2

    continues to funnel over $200 billion in stimulus a year to Wall Street and the banks.

  •  There Is No "rightward drifting country" (3+ / 0-)
    Recommended by:
    Clem Yeobright, PhilK, apimomfan2

    There has been a rightward drifting MSM and a rightward drifting presidency, but the people desire policies to left of Obama and pundit class generally.

    a rightward drifting country

    Existence is no more than the precarious attainment of relevance in an intensely mobile flux of past, present, and future.~~~ Susan Sontag

    by frandor55 on Fri Aug 26, 2011 at 09:10:44 AM PDT

  •  Impossible (1+ / 0-)
    Recommended by:
    Clem Yeobright
    His prediction was based on politics

    I distinctly remember reading on Dailykos that Paul Krugman knows NOTHING about politics.

  •  For a "political rookie" (7+ / 0-)

    this Krugman guy sure seems to have a knack for making accurate predictions based on his reading of the state of our politics.  

    "In the long run, Americans will always do the right thing — after exploring all other alternatives." - Winston Churchill

    by puakev on Fri Aug 26, 2011 at 09:14:04 AM PDT

  •  Is it possible Bernanke would like a GOP Pres? (1+ / 0-)
    Recommended by:
    apimomfan2

    Sometimes the obvious answers are the right ones.

    To avoid starting dumb wars, punish the dumb people who vote for them.

    by joesig on Fri Aug 26, 2011 at 09:14:24 AM PDT

  •  sure Ben Bernanke is reading the same news WE (1+ / 0-)
    Recommended by:
    Aquarius40

    re, its just that he does n't lurch from crisis to crisis screaming the sky is falling every time anything happens.  this week it was Libya, Europe's banks, an earthquake and now a hurricane on the east coast, not to forget President Obama's temerity in taking a vacation in August and going to the beach when everyone else is being ordered to evacuate,.

    Thank God Mr. Bernanke and President Obama seem to have read Rudyard Kiplings 'IF" and are keeping their heads when all around us we are losing ours.

    Markets demand certainty, certainty does NOT exist in the real world.

  •  We need to use the "D" word. (5+ / 0-)

    Yes, I know -- economists have their own definitions of what constitutes a depression and -- lo and behold! We actually fit a lot of them.

    Long and severe rise in unemployment, rise in bankruptcies, bank failures, currency fluctuations, etc.

    But -- most images of the Great Depression do not linger on whether the GDP was rising or falling,  they linger on breadlines, Sooners heading out to California in their piled up trucks neighbors showing up with guns at foreclosure auctions, etc.

    In terms of the gut-punching impact of a depression, we, boys and girls, are there.

    Millions of people have been out of work for a very-very long time.
    Millions of homes have been foreclosed or are in the process of being foreclosed.
    Price deflation in home real estate is now the norm.

    People who have worked and supported their families for decades are showing up at mall entrances with "Will do any kind of work" signs.

    The economists may never get it, but we've got to get it through the heads of those thick skulls in DC: now is the time for triage. We are in a depression.  Long term policies are not our first priority.  Recognize that, and we'll have your backs.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Fri Aug 26, 2011 at 09:16:06 AM PDT

  •  The joke here... (1+ / 0-)
    Recommended by:
    apimomfan2

    ...is that nothing can be done. Choose your poison, either the disease kills you, or the medicine. Look at Greece for a good example of this. Take Krugman's advice, take the Republicans', take Obama's, take Bernanke's. Any one will land us in a wicked recession, the only question is when.

    The US is running a deficit of 10% of GDP and has been for 3 years. Total debt is at 100% of GDP. These aren't sustainable numbers. When that 10% deficit is reduced to zero, 10-20% of our economy is going to vaporize instantly. And it will not be fun.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Fri Aug 26, 2011 at 09:16:52 AM PDT

    •  Debt has NOTHING to do with it (1+ / 0-)
      Recommended by:
      psyched

      If the denominator - GDP - were where it could and should be, and the numerator - debt less emergency safety-net spending - were where it could and should be, the debt wouldn't even be under discussion.

      And forget the 'Look at Greece' bullshit. Our situation is NOTHING like Greece's.

      Am I right, or am I right? - The Singing Detective

      by Clem Yeobright on Fri Aug 26, 2011 at 09:26:42 AM PDT

      [ Parent ]

      •  Re (1+ / 0-)
        Recommended by:
        apimomfan2
        If the denominator - GDP - were where it could and should be, and the numerator - debt less emergency safety-net spending - were where it could and should be, the debt wouldn't even be under discussion.

        Wow, if I were rich, the fact that I can't afford a mansion would not even be under discussion!

        And forget the 'Look at Greece' bullshit. Our situation is NOTHING like Greece's.

        You erroneously think that the fact that we control our own reserve currency, or some other form of American exceptionalism, will save us from what is coming. You are wrong. If your deficits and debt with respect to GDP are too high, the sucker is going down. It's a mathematical certainty.

        We still have a little room to maneuver today (unlike Greece) but we will squander that opportunity, just like we have been doing so for years, back into the Clinton administration.

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Fri Aug 26, 2011 at 09:33:06 AM PDT

        [ Parent ]

        •  Interesting (1+ / 0-)
          Recommended by:
          psyched
          You erroneously think that the fact that we control our own reserve currency, or some other form of American exceptionalism, will save us from what is coming.

          No, 'what is coming' is what is coming - which is a breathtakingly ridiculous tautology you somehow seem to think to be wisdom.

          If your deficits and debt with respect to GDP are too high ... It's a mathematical certainty.

          You ignore completely the nature of a ratio as I pointed out above while pretending a 'certainty' that just makes you look silly.

          the sucker is going down.

          I have no idea what 'the sucker' is or what 'going down' might be, but you've assured that your proposition is not falsifiable, haven't you? No matter what 'is coming', you'll be able to pat yourself on the back for perspicacity, won't you?

          Am I right, or am I right? - The Singing Detective

          by Clem Yeobright on Fri Aug 26, 2011 at 09:45:55 AM PDT

          [ Parent ]

  •  Do you think the Banksters would "get ugly" (0+ / 0-)

    with Governor Perry if the economy continues to suck and Congress and the Fed refuse to act?

    Umm, that's PRESIDENT Obama and SENATOR Franken, mr. o'reilly.

    by filby on Fri Aug 26, 2011 at 09:17:50 AM PDT

  •  I know! Give the banks more $trillions! (1+ / 0-)
    Recommended by:
    apimomfan2

    That'll work!

    Obama is "a good man" to many democrats like Bush was "a good man" to republicans.

    by The Dead Man on Fri Aug 26, 2011 at 09:22:56 AM PDT

  •  O/T UN Building bombed in Nigeria, Fatalities (0+ / 0-)

    Folks, the United Nations building in the Nigerian capital Abuja has been bombed. It was a car-laden bomb, 18+ people have been killed. This is senseless. Nigeria has been battling an extremist Islamist group, Boko Haram, that has been bombing indiscriminately. Not sure if they are responsible for this one, yet. http://www.denverpost.com/...

    "What the cynics fail to understand is that the ground has shifted beneath them." -- Pres. Obama (1/20/2009)

    by zizi on Fri Aug 26, 2011 at 09:23:02 AM PDT

  •  The "pussification" of America continues (4+ / 0-)

    No political will or leadership anywhere, just moronic bullies like Rick Perry and those of a similar ilk. Poor little Ben afraid little Ricky and the teabaggers might say something mean...

    Just another day in Oceania.

    by drshatterhand on Fri Aug 26, 2011 at 09:23:53 AM PDT

  •  But, but, but, I don't think bernanke is wrong (3+ / 0-)
    Recommended by:
    hi5enigma, Southside, JC from IA

    here. He is exactly correct.

    He pointed the finger at government and Europe.

    Look, QE is not precisely stimulus. It's a beggar-thy-neighbor policy that makes things worse for all of us. Every country can't adopt this approach because it inevitably leads to lower wages.

    Worse, if the rest of the world isn't adopting such a policy (read: Europe) then American excess capital gets sopped up elsewhere in the form of cheap liquidity. We create asset bubbles elsewhere.

    The answer is: REAL STIMULUS. Gov't needs to put people back to work through policies, both in Europe and the USA.

    Instead, we have the worst of both worlds. No increase in spending on a real basis AND QE which drags down earning power.

    Bernanke is right.

    There are two kinds of people in this world. The kind who divide the world into two kinds of people, and the kind who don't.

    by upstate NY on Fri Aug 26, 2011 at 09:25:21 AM PDT

    •  But he dithered (0+ / 0-)

      He could have committed to low interest rates and promised inflation and weakening of the dollar.

      Instead: I'll be really really sorry to see the U.S. disappear. It will ruin an entire afternoon for me and I probably will need pills to sleep that night. Bye bye!

      Am I right, or am I right? - The Singing Detective

      by Clem Yeobright on Fri Aug 26, 2011 at 09:31:36 AM PDT

      [ Parent ]

    •  I agree. Bernanke's right. (3+ / 0-)
      Recommended by:
      psyched, Southside, upstate NY

      Look, a weak dollar is EXACTLY THE ROUTE BUSH TOOK! And it's what eventually created the Great Recession.

      Keep your eyes on the prize, folks. Stimulus spending is the only way out of this mess. Yes, the Party of No has stymied that at every turn. They obviously don't want the economy to recover - before they've returned to power. And if we liberals don't help the Democrats hold on, that's exactly what will happen. Do we really want a return of the GW Bush Era?

      Ralph Nader once said that it didn't matter if Bush or Gore was elected. Is there truly anyone out there that still believes he was right?

      A non-vote is still a vote, and a refusal to work for the Dems is still a way of strengthening the Republicans.

  •  It is NOT Their Sole Purpose to Destroy Obama (2+ / 0-)
    Recommended by:
    psyched, apimomfan2

    Just their IMMEDIATE purpose.

    They intend to terminate promotion of the general welfare entirely, and all ability of government to impose on business for the benefit of the people.

    That's been their program since FDR went to work in 33, and incessantly talked up by the modern rightwing movement since its birth in the mid 60's.

    Obama is a useful target for them because of the amount of popular racism, nothing more.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Fri Aug 26, 2011 at 09:28:43 AM PDT

  •  "the fundamentals of the economy are strong" (1+ / 0-)
    Recommended by:
    soros

    and by "fundamentals" i mean unicorns and rainbows

  •  Is Paul Krugman inferring that Bernanke is (1+ / 0-)
    Recommended by:
    JC from IA

    is afraid of Rick Perry?

    http://www.nytimes.com/...

    We have finally gone over the edge.

    •  You infer; he implies. (1+ / 0-)
      Recommended by:
      soccergrandmom

      Congress made the Fed and Congress can un-make the Fed.

      Here is Mark Thoma's take:

      I think a majority on the FOMC would still push forward if it weren’t for the change in the political environment. When Bernanke wrote earlier in his career and criticized the Japanese central bank for not doing more, I don’t think he thought the consequences of being wrong about inflation were as severe as they are now. The Ron Pauls in Congress looking for a reason to attack and take away the Fed’s powers, the criticism from many on the left for all sorts of things, etc.,etc., puts the Fed in a more precarious political position than they ever expected to be in, and the fear of making a mistake and losing independence is tying its hands. The Fed values independence first and foremost, and it is unwilling to put that in danger.

      Am I right, or am I right? - The Singing Detective

      by Clem Yeobright on Fri Aug 26, 2011 at 09:55:48 AM PDT

      [ Parent ]

      •  OK. Then am I inferring that Paul Krugman (2+ / 0-)
        Recommended by:
        Clem Yeobright, JC from IA

        is implying that he is afraid of Rick Perry?  or not? I don't know, just wondering what this piece really means in the context of Rick Perry, not Bernanke's actions or lack of them.

        That was what I was wondering about,  not whether Bernanke was right or wrong to do or not to do what he did or didn't do and why.

        •  Thanks for clearing that up! (0+ / 0-)

          I realized after posting that your formulation did make sense and in fact conveyed what you intended; sometimes a failure of leadership is in reality a failure of followership, if you see what I mean.

          And I think you read PK right: I infer that he implies that he infers that Bernanke is responding to political considerations. I hope the passage I cite, which refers explicitly to Ron Paul but could easily be expanded to include Perry, serves somewhat to justify Krugman's inference (and implication).

          Hope that's better.

          Am I right, or am I right? - The Singing Detective

          by Clem Yeobright on Fri Aug 26, 2011 at 10:26:38 AM PDT

          [ Parent ]

          •  Yes, I am actually quite fascinated with Ron (1+ / 0-)
            Recommended by:
            Clem Yeobright

            Paul's position's' and his attraction for certain members of the electorate ranging from Libertarian through Progressive,  he seems to be be a sort of moveable feast allowing people to feel about him any way they wish.

            There's an expression for that kind of person but it escapes me at the moment.  He seems to be a reflection of others rather than a real passionate committed politician.

            Just an observation from the way some of my more radical union friends seem to want to gravitate toward Ron Paul and are willing to overlook many of his more outré stances.

            Frankly, I just don't get the electorate's attraction to Ron Paul, not that that means squat.

            Now, Perry, I totally 'get' and loathe the man as a complete charlatan and opportunist who will stake out any positions depending of the occasion. I can seriously see him winning a primary, but I am not that far gone yet that I can believe the general electorate would actually elect the man?  But I have been wrong before.

            As for Krugman, I sometimes wonder what his personal agenda is as well.  He seems to want to be both the outsider and the insider at the same time.

  •  The GOP has done everything possible (0+ / 0-)

    to delay and hamper the economic recovery in the hopes of beating Obama.  It's that simple.  Despite there efforts, I think Obama has a very good chance of winning, especially if growth can pick up a little in the next 3 quarters.

    Alternative rock with something to say: http://www.myspace.com/globalshakedown

    by khyber900 on Fri Aug 26, 2011 at 10:06:19 AM PDT

  •  OK, what are those remedies the Fed could be using (0+ / 0-)

    and why do you believe that they are desirable right now?  

    Please, be specific.  Oh, and I already know what various economists like Krugman think, so save yourself the trouble of posting them in support of your argument.  

    Let's see what you got.

  •  Then It's More or Less GAME OVER (1+ / 0-)
    Recommended by:
    apimomfan2

    as was pointed out here yesterday, we are now in our second lost decade related to the financial train wreck.

    Somebody has to step up and invest in the U.S. in a major way and that somebody is:

    1.) The federal government.
    2) Private businesses (1,600 of them in the U.S. are now sitting on over $1 Trillion in cash reserves).
    3.) A combo of the above.

    the 15-20 million UNemployed people and the rest of the poor dining on bologna sandwichs and ramen noodles several times weekly sure as Hell don't have the $2 Trillion-plus that is needed.

    "I don't feel the change yet". Velma Hart

    by Superpole on Fri Aug 26, 2011 at 11:03:02 AM PDT

  •  What more should the Fed do that hasn't been done? (0+ / 0-)

    Has the Fed purchased a lot of long-term govt. debt to keep interest rates low? Yes.

    Has the Fed announced that short-term interest rates will be kept near zero for the next 3 years? Yes.

    Has the Fed set a target for moderate inflation of 3-4% for the next few years? Well, by their other actions to keep interest rates low, they've essentially done this. So, yes.

    Has the Fed kept the value of the dollar low? Yes.

    In short, the Fed has used every tool available to it.

    Krugman knows this and isn't slamming Bernanke and the Fed because he didn't propose a financial policy solution. In all fairness, neither should we.

    Bernanke didn't punt. He's trying to make it clear to Congress and the White House that it's up to them. Everyone knows that putting people back to work will heal the economy. The Fed's used all the tools available to it for this purpose. Now it's up to the politicians to create jobs. It's clear the Republicans believe their best 2012 electoral interests lay in keeping the economy in the toilet, so things aren't likely to improve. But if you want to sound smart at the cocktail party, don't blame the Fed. They've tried.

    Knowledge is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

    by Citizen Earth on Fri Aug 26, 2011 at 11:55:58 AM PDT

  •  Not sure how Krugman got the Nobel prize (0+ / 0-)

    Krugmana's theories maybe good, but I think he is a little out of touch with the real world of economics.
    He always looks like he just crawled out of bed, or is on drugs when he appears on TV.

  •  without Obama, Gietner & Bernake the U.S. would be (0+ / 0-)

    much worse shape. Al three are brilliant.

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