Another sad story of an economist…I’m sorry to say.
The U.S. economy is “leveling off at a low level” and doesn’t need a second fiscal stimulus package, said former Federal Reserve Chairman Paul Volcker, one of President Barack Obama’s top economic advisers.
Yes, the stimuluses are stupid and do nothing good also with the Too Big to Fail shit. But where do you see leveling off? I see only quantitative easing and nothing else. I think you bet too much of your reputation on this scenario. I’m All in as I would say in poker game.
Volcker, head of Obama’s Economic Recovery Advisory Board, said the 6.1 percent decline in first-quarter gross domestic product reported by the government today was “expected.” More recent data show the contraction in housing, business spending and inventories has slowed, and stimulus spending is only just beginning to hit the economy, he said.
Yes the stimulus spending has time for delay as always, but do you think that it could withstand trillions of coming losses? Yes it could, with new money and currency devaluation. You would have a lot of work with the gold as the only real money. Lot of work with swaping to another central banks, so you can then do gold look like some shit asset.
Still, with the financial system functioning only by “the grace of government intervention,” the economy is “in for a long slog” before a recovery takes hold, Volcker said. “I’m not here to tell you the economy is going to recover very strongly in the short run,” Volcker said. “There is reason to believe that it should be leveling off, at a low level.”
“The Federal Reserve is going beyond the traditional role of central banks here or abroad,” Volcker said. “At some point it’s reasonable to ask should this particular institution, with its independence very well protected, be allocating so much of what is essentially government money.”
Government money? What money, only papers, Governments produce nothing, only redistibutes wealth of citizens.
Volcker said Fed Chairman Ben S. Bernanke is “doing a great job” and he declined to speculate on whether Obama will reappoint Bernanke when his term as chairman ends in 2010. “It’s not a situation where any of this problem reflects shortcomings on Mr. Bernanke’s part.”
Great job? Nothing on my mind to say on this.
Volcker agreed with economists who say the expansion of the Fed’s balance sheet, to more than $2.2 trillion as of last week, might pose an inflation danger at some point.
“The inflation problem, which should be a real threat for the future, is not right on the doorstep,” he said. “But two or three years from now that may be the critical problem, how that’s handled. Because, given what the Federal Reserve has been doing, it’s going to be harder to retrace their steps, so to speak, than it ordinarily would be.”
Might be? It will be for sure and everyone sane knows it. Fiat paper money is now on new level under Bernanke. You think gold is not money? So why are central banks holding gold? And why don’t you count the real reserves of US gold reserves?
I’m sorry for you, that you’ve gave up your credibility in few sentences.
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