Economic Outlook per The Fed: Ouch!

Would an intelligent person push a string?

Inquiring minds are reading the article by Fed Chairman Ben Bernanke on the Economic Outlook. As always, it was a stunning display of pride and narcissism rivaling only the POTUS:

In many countries, including the United States and most other advanced industrial nations, growth during the past year has been too slow and joblessness remains too high. Financial conditions are generally much improved, but bank credit remains tight; moreover, much of the work of implementing financial reform lies ahead of us. Managing fiscal deficits and debt is a daunting challenge for many countries, and imbalances in global trade and current accounts remain a persistent problem.

Did you catch that? “Managing fiscal deficits and debt is a daunting challenge…” So, the deficits and debts are okay just not easy to manage! Gee, Ben, most would say that running deficits is WRONG! In a few paragraphs down, Poor Ben shows his inability to notice that grove of trees over there is actually a forest:

At best, though, fiscal impetus and the inventory cycle can drive recovery only temporarily. For a sustained expansion to take hold, growth in private final demand–notably, consumer spending and business fixed investment–must ultimately take the lead. On the whole, in the United States, that critical handoff appears to be under way.

That first sentence is unbelievable admission. WOW! Simple Ben almost has an intelligent thought. But then follows it up with a following sentence that forces the reader to realize it was just those 10,000 monkeys happening to hit a certain set of keys in a certain sequence. Where, pray tell, does Goofy Ben believe consumer spending coming from since record numbers of people have lost or are losing homes and/or jobs? And with all the bad loans, where are the banks going to get money to lend?

50,000 watts of willful ignorance. If you enjoy black comedies, you might enjoy the article in its entirety.


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