Reading any business website would lead one to conclude Americans are in an era of unprecedented prosperity. A term like economy is on all cylinders and expanding job opportunities are all the rage. Even 1.8% GDP growth is now celebrated as “explosive” and “gaining momentum.” These economic pronouncements are very reminiscent of The Soviets bragging about fictitious industrial and grain production numbers. The reality is the economy is stagnant and sucks.
Ben Bernanke is propping up the Stock Market and Real Estate buy printing $80 billion a month. This has inflated asset prices, but has not benefited the economy. If Bernanke were to stop the money printing, the Stock Market would collapse and the economy would be back in recession. The Fed Chairman was honest in his assessment and says his QE policies will continue because the Obama Boom needs assistance.
WASHINGTON (AP) — Chairman Ben Bernanke says the U.S. economy still needs help from the Federal Reserves’ low interest rate policies.
Bernanke is telling the National Bureau of Economic Research that because unemployment remains high and inflation is below the Fed’s target, the policies are still necessary. He also said the economy is also being held back by higher taxes and federal spending cuts.
Bernanke is answering questions after a speech in Cambridge, Mass. that focused on the Fed’s successes and failures in managing the economy over the past 100 years. Bernanke didn’t signal any changes in the Fed’s bond-buying program during his remarks.
As a result of this admission, The Stock Market is roaring today.
Stocks spiked sharply across the board Thursday, with the Dow and S&P 500 crossing above their record closing highs, after Fed Chairman Ben Bernanke emphasized the central bank intends to keep its stimulus measures for the foreseeable future.
Wall Street is addicted to the Fed’s easy money policies like a junkie is top Heroin. This is another bubble brewing and one that is not benefitting most Americans. The media will cheer every new high the Stock Market achieves without explaining the printed money behind it. For most Americans, the paycheck to paycheck struggle will continue in the Obama Boom
Tags: Ben Bernanke, QE3, The Obama Boom
