Tuesday, 17 July 2012

Bernanke on unemployment

Federal Reserve chairman Bernanke today appeared before the Senate Banking, Housing and Urban Affairs Committee and he will probably turn out to be correct on this prediction. According to Bloomberg he states that "progress in reducing unemployment is likely to remain frustratingly low but that the Fed is ready to take further action to boost the recovery".

Further action? What further action? The Fed has done nothing so far to boost the economy or to reduce unemployment. Rather on the contrary, it is continuing to support speculation by banks through keeping interest rates artificially low and close to zero and increasing the money supply to atmospheric levels. How that helps unemployment when it has not done so yet, and they've tried this for four years now, is not quite clear..... Somebody once said that insanity is trying the same thing over and over again and expecting a different result each time....

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