Bernanke nudges the Do Nothing Congress
Posted: November 2, 2011 Filed under: Economy, U.S. Economy | Tags: Federal Reserve Bank, FOMC. Ben Bernanke 10 Comments
It’s been interesting watching Bernanke get more shrill with each post FOMC meeting news conference. First, he points out that the right wing meme about the unemployment being structural is wrong headed. He talks about why it’s important to respond to cyclical unemployment. This is something congress has being ignoring while doing important things like passing bills to ensure that trust in imaginary friends is printed on money.
“We believe that a good bit of the unemployment were are seeing is what economists would call cyclical unemployment, that is unemployment arising because of inadequate demand in the economy. If that is the case, then monetary policy by lowering interest rates, making financial conditions more accommodative, should stimulate demand, stimulate spending and over a period of time that should help bring cyclical unemployment down. It’s also possible that some of the increase in unemployment reflects so-called structural factors, mismatches between worker skills and job opportunities, loss of skills, geographical location, etc. If that’s the case then monetary policy is much less effective because only other kinds of labor market policies can make progress against that type of unemployment. But again I do think that a considerable part of the unemployment that we are seeing is cyclical. Final comment, cyclical unemployment left untreated, so to speak, for a long time can become structural unemployment as people lose skills, they lose attachment to the labor force.”
He also asked for a little help from congress. Bernanke basically tired to ask for stimulus without using the word since the Congress has branded it anathema.
“With respect to the current economy we are currently continuing our accommodative monetary policy. We are trying to do our best to support economic growth and job creation. It would be helpful if we could get assistance from some other parts of the government to work with us to help create more jobs. But certainly we are doing our part to create more jobs, more opportunities in America.”
Sorry, Ben, the “other parts of government” are just to busy to help the economy work. They prefer to posture and preen. Bernanke has amped up the volume as pointed out at Political Animal. Kevin Drum thinks that the next presser will be when Bernanke says “Will you guys stop griping about the damn budget, get off your butts, and build a few effin bridges instead? Jesus.”
peej
Carissa
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Mona (aka Wonk the Vote)
Sky Dancing 
It says life begins at fertilization, or cloning, or the functional equivalent there of ”
thats crazy aint these the same people that are always crying about govermant interfing in peoples lives ???
yup …
best not take their guns away — but total control of women — the hill billy, red neck, moon shiners are all for it. (Did I hit all the good ‘ole boy stereotypes?)
Wow! Bernanke really is getting shrill. He almost sounds like Paul Krugman.
He gave the banks a rap on the knuckles too, unless I’m misunderstanding this:
Yup. That he did.
Rick Perry must be getting desperate. He told the SF Chronicle that he sympathizes with the Occupy protesters.
http://www.star-telegram.com/2011/11/02/3495401/rick-perry-denies-alcohol-rumors.html
Uh oh – this is while fewer and fewer of us have any money to read this important message on. They’d better make sure more of us get this nice greenback stuff so we don’t miss ANY of those important messages. It’s religiously imperative!
HAHAHA!
goofd read. 🙂
need new glasses thats good.. 😆