Not Worried About Inflation?
In case you forgot, two weeks ago U.S. Federal Reserve Chairman Ben Bernanke declared that the American recession was “likely over.” Yipee, right? A week later, though, the Federal Reserve said it was going to keep pouring trillions down the drain on “stimulus” spending anyway.
Vintage government, right? Saying something’s no longer broken and yet continuing to “fix” it.
Sensing the message confusion, two of Bernanke’s subordinates were dispatched Thursday to reinforce the notion that happy times are only “kinda sorta” here again.
From Reuters:
Federal Reserve officials said on Thursday that while the recession-battered economy is on the mend, it will be weak for a while and the Fed is likely to keep its extensive support policies in place for a while.
The presidents of the Cleveland and the Atlanta Federal Reserve banks, in separate remarks, highlighted the economy’s continued reliance on government stimulus programs in citing its fragile state.
Cleveland Fed President Sandra Pianalto said she expects a gradual and bumpy recovery from the recession and is not worried that the Fed’s extensive efforts to pump money into the economy risk igniting inflation …
… both Pianalto and Dennis Lockhart, president of the Atlanta Federal Reserve, said they expected already-high unemployment rates to continue to climb.
So in other words, the recession is “over” but unemployment is still going to climb as part of a fragile economy that’s about to go on a long and bumpy ride … so let’s by all means keep “stimulating,” shall we?
On top of that, we’ve printed tons of new money – out of thin air – and yet the Federal Reserve isn’t worried about inflation?
Sheesh … we failed econ 101 and can tell you how that’s going to work out …
Comments
By Red on October 2nd, 2009 at 9:16 am
Why do we have a group of secretive bankers dictating our interest rates and printing money with no oversight?
How dam gullible and foolish are we to let these clowns rob our money and do nothing about it? The Fed refuses to tell us who they loaned to and what type of collateral they have and the interest rates they are charging.
The Fed never saw the housing collapse coming and failed to see the derivative blow up.
And Obama reappoints Bernanke. That is like Bush saying good job Brownie.
By political hack on October 2nd, 2009 at 9:33 am
That picture says it all…Who is worried about inflation? I mean what is a billion dollars these days? “Billions” is thrown around so much it doesn’t even seem like a lot of money, but in reality it is just that much more money in circulation. And as we learned in kindergarten, when there is more of something, it is not as valuable! Helicopter Ben has not to worry about inflation, because sooner or later he will have to start burning up some of those dollars to curb the out of control money supply, and interest rates will go back up to 20% or so like they did in the 70s.
By SC Integrity on October 2nd, 2009 at 10:09 am
Great Scott!! I’m sitting on bleepin GOLD!! Got enough TP here for a year. Just post an SOS, FITS, when you’re in dire need of wipes.