Ben Bernanke to Occupy Wall Street: Don't blame the Fed
While Ben Bernanke acknowledges the discontent voiced toward the Federal Reserve by Occupy Wall Street protestors, he believes their criticism to be based on the general public’s misunderstanding of how and what the Fed does.
Bernanke holds these truths to be self-evident. And while the vast majority of Americans polled, believe that the Federal Reserve enabled mega banking to sidestep eminent disaster by hoarding no interest bail-out money, while paying executives six figure bonuses… Bernanke says no!
In truth, the Chairman artfully side stepped this issue and many others.
What was today’s announcement from the Fed? There’s nothing new in the United States economy for the third quarter of 2011. According to Ben, the economic recovery is slow and relatively stable.
Federal Reserve board Chairman Ben Bernanke believes that the actions of the Fed saved the world as we know it. And that in-fact, the Fed’s intervention prevented a catastrophic implosion of the world economy.
Wednesday’s announcement by the Fed was by most accounts a “non-announcement.” The Federal Reserve has opted to take an approach of let’s wait and see, as to a painfully slow economic recovery for the United States.
Explaining the optomistic economic forecast released by the Fed last June, Bernanke stated that he and others had underestimated the time required for a full international economic recovery.
According to Ben, a combination of unanticipated natural as well as market events has extended the time line.
Pointing to the 2011 Japan earthquake, a spike in world oil prices driven by global market speculation, as well as the recent economic crises impacting the E.U, as factors leading to an increase in the retail price of new automobiles to gasoline to groceries. This in turn, according to Bernanke has impacted the recovery of our consumer driven economy.
No spending, no recovery.
Bullet points: The Fed is reporting a 2% long term rate of inflation through 2012. According to Bernanke…The actions of the Federal Reserve has prevented hyperinflation in the U.S.
Unemployment remains high. The Fed does not anticipate a measurable decrease in unemployment in the foreseeable future.
The Fed’s extension of maturity dates of long term government bonds has driven interest rates down, flooding the mortgage market with funds. Unfortunately according to Bernanke… Stringent lending requirements imposed on consumers by over cautious lenders, has stalled any recovery in the housing market assisted by the availability of low interest loans.
Interest rate of return on investment has dropped to near all-time lows on everything from pension funds to small savings accounts.
According to Chairman Bernanke…. The nation will continue to experience a painfully slow economic recovery through 2014. Until consumer confidence returns in force, very few to no new jobs will be created in the private sector. Bernanke spoke on to state: There is no escaping our financial ties to the European economic crises. According to Bernanke, “It is inescapable.”
What is Ben Bernanke’s economic advice to the citizens of the United States? Not worth printing here!
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