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Bernanke Admits He’s Clueless On Economy’s Soft Patch!

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posted on Jun, 22 2011 @ 04:02 PM

In his second post-FOMC press conference, Fed Chairman Ben Bernanke touched on every topic, admitting that the recovery was weaker than expected and that beyond temporary factors like supply chain disruptions in Japan and high energy prices, he was at a loss as to what was causing the soft patch. In a Q&A session with reporters, Bernanke said a disorderly default in Greece would have significant effects on the U.S. economy, while adding that the Fed still had several tools at its disposal to pump up the economy.

With markets at a crossroads, amid a cooling economic recovery and a dangerous Greek crisis threatening the euro and the global economy, reporters grilled Bernanke and asked many of the right questions.

Brutally honest, Bernanke admitted that he had no clue what was actually causing the current fragility in the U.S. economic recovery. While the FOMC statement assigned blame outside of the U.S., pointing at Japan along with rising food and oil prices, Bernanke was put on the spot by a reporter who noted the inconsistency behind that explanation and a lowering of long term forecasts. Bernanke took the hit, admitting only some of the factors were temporary and that he didn’t know exactly what was causing the slowdown, but that it would persist. “Growth,” said Bernanke, “will return into 2012.”

Bernanke Admits He's Clueless On Economy's Soft Patch

Interesting that the Fed Reserve Chairman is admitting to factors that he doesn't understand contributing to the US economy's 'soft patch' as it is referred to.

posted on Jun, 22 2011 @ 04:08 PM
reply to post by surrealist

Hilarious.. I just saw that on Drudge too..

Don't mind if I throw this in here.. Bernanke on record being wrong in 2005, 2006, 2007, 2008....

"Don't worry folks, we'll be back to normal in 2012!" whew...

posted on Jun, 22 2011 @ 04:27 PM
reply to post by rstregooski

Oh, that's just priceless...thanks for the Bernanke vid, saving that one.

Funny that he doesn't understand what the issue with the economy is (the issue that some here refuse to admit's "The general trend is that everything's getting better, shut up doomsayers!" or some such...I cannot agree, despite wanting to) while others, like Ron Paul, seem to - as well as having the ability to warn about these kind of issues before they become obvious to everyone else.

Why exactly do most people keep listening to Bernanke as though he's anything other than myopic and ignorant on actual economic fundamentals (like the ones he insisted were sound)?

posted on Jun, 22 2011 @ 05:44 PM
It's the employment, stupid. There won't be a recovery until jobs return. Without people earning money to spend, and earning money for the government to tax and spend there is no recovery.

posted on Jun, 22 2011 @ 05:48 PM

posted on Jun, 22 2011 @ 06:01 PM
Bernanke already has a plan its just the one that the population will not like, the plan will increase taxes in order to lower the deficit, will create more unemployment and inflation.

But is up to the hands of congress and the president to do this one, if taxes are not raised and more cuts on the spending is not done, we will be falling more and more into depression.

$2.3 Trillion ... And Counting

Since December 2008, when a worldwide credit crisis threatened to take down the global financial system, the U.S. Federal Reserve has had a starring role. It has held the benchmark Federal Funds rate at historic lows between zero and 0.25% to keep the U.S. economy from stalling. And it's pumped more than $2.3 trillion into the American financial system, mostly by purchasing securities on the open market.

The key to these asset purchases has been two "quantitative easing" plans. The second of the two, known as "QE2," was a $600 billion initiative that was rolled out in November. It's supposed to wind down when the second quarter ends next week - which is what the Fed promised at the end of its last FOMC meeting in late April.

When the Fed's policymaking Federal Open Market Committee (FOMC) meeting breaks up at around noon today, pundits are expecting Team Bernanke to announce that it's holding rates steady, and is winding down QE2 as promised.

But did Bernanke say anything about interest rates? I will like to know any news on that one because depending on that factor that is how the economy will be heading.

posted on Jun, 22 2011 @ 06:38 PM
reply to post by surrealist

He is probably clueless about that soft patch between his legs too......

(Have some humor mods and don't delete this pleeeeeeease)

posted on Jun, 22 2011 @ 07:40 PM
reply to post by earthling42

Many thanks for that Ratigan link earthling42. David Stockman really nailed it. What a barn-burner that was!

When I tried to reload it, I couldn't get it, so here's another link from MSNBC.

Green Shoots! Soft Patch!

You just have to love these scripted catch phrases and the subtle way they creep into the daily lexicon as if they were vetted by Lord Keynes himself, when in fact they're spawned in a network cubicle by some moderately creative, low level CNBC staff writer schilling for the Fed and the Wall St money grubbers.

At least Bush was too stupid not to be out front about it.

See in my line of work you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda. - JWB 2005

Way back when I was in high school, "Soft Patch" had a whole different meaning.


posted on Jun, 22 2011 @ 07:45 PM
He is clueless because he knows that there is no way we will ever recover under the current economic paradigm. We need more money and we can't afford to borrow it. Thus we need to print it and limit bank leverage to avoid it being inflationary.

posted on Jun, 22 2011 @ 08:34 PM
It's kind hard to go shoping when you have to constently drop $20 or even $50 bills into our gas tanks.

posted on Jun, 22 2011 @ 09:16 PM
Bernanke is by no means clueless. He knows how full of crap his public statements are. I think we're actually starting to see some fear in ol' Beernapkin. I think he's finally done everything he said he would in his life-thesis about preventing a Great Depression type scenario except for the helicopters. Fortunately for him he's been able to keep it together long enough that the public and history will probably blame Congress as much as him and Greenspan for this Great Depression the Sequel. As much as I was against TARP, I must admit it bought some time, but there has been,in my opinion, little of consequence done addressing the issues of over-leverage, derivatives, and punishing the control-fraud ( William Black ).

I noticed no QE 3 language and must assume they are either trying to figure out a new euphemism for printing or holding off on that while bucky is showing some strength.

Bernanke is juggling hand grenades right now and I'm pretty sure he knows not all of them have pins in right now.

posted on Jun, 23 2011 @ 07:29 AM
reply to post by jefwane

Thanks that is what I was trying to figure our if he was going to stick with QE2 and not jumping to the QE3, if they do that means the QE2 plan is to expired as the 600 billion dollars put on the economic recovery is ending, so the end of the QE2 means and inflation in the proportions US has not seen in decades.

You see, there's a reason there's so much interest in the Federal Reserve plan for QE2 - and for its plan for the much-talked-about QE3: At some point, the Bernanke-led Fed will be forced to halt this epic stimulus initiative. And that could ignite an inflationary firestorm not seen in this country in decades - if ever. That will turn the Fed's mandate of maintaining "price stability" into a bad joke.

But, even worse, it could tip the U.S. economy into a double-dip recession, ignite widespread layoffs and drive unemployment skyward, and hammer this country's standard of living - especially in households that didn't prepare for this eventuality.

From my link

Yes this is going to be interesting.

posted on Jun, 23 2011 @ 09:27 AM
Why hasn't any news stations informed America the Saudi Riyal is no longer pegged to the US Dollar?

You need 4 US dollars now to get 1 Saudi Riyal.

We're only going to go further down.

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