January 7,2011 --- Washington
Federal Reserve Chairmantestified before congress today about the country's economic outlook and monetary policy; this was Bernanke's first appearance before the oft bally-hooed 112th Congress.
The hearing was a bit of a formality; Quantitative Easing, or QE went into effect earlier in week, despite many members on both sides of the aisle questioning it's ability to sufficiently and sustainably stimulate (that's alliteration!) the economy.
By now, I'm sure you know QE is politico-ese for money from nothing; the Fed in essence will be buying long-term treasury bonds from banks by injecting them (the banks) will an extra $600billion. Where is this money coming from? You guessed it,the tips of some tech geeks fingers as he punches the agreed upon amount into the banks accounts. Wow, I bet the average citizen could use some of that welfare, er, Quantitative Easing.
Though the Fed has essentially put on the red cape and plastered the trademark 'S' on it's financial chest, The Ben Bernanke had this to say about the bleak jobs market:
"It could take 4 to 5 years for the jobs market to normalize if current trends continue."
But wait, I thought Quantitative Easing was supposed to help 'normalize' ( read return to historical levels of inequity as opposed to these shiny new, unprecedented ones) the economy much sooner?
Ah, but not so fast young padewan, and not so much, either.
"The budget outlook is projected to deteriorate rapidly (by 2020)" Again, so says the Ben Bernanke
So, even with QE, we still appear to be headed down the long (but getting shorter daily) road to ruin.
It seems to be that the banks are just hedging their bets, building a shield for the next round of bursting bubbles at the expense of the taxpayer, soldier, educator and Joe Plumber. What do you think?
Benjamin Burton Jr. 1/7/2011