Bernanke, Bucks and Bottoming Economy

The following red sections are excepted from the Wall Street Journal, the unindented black sections are my comments.

NO STIMULUS GIMMICKS, PLEASE

By BILL THOMAS and ALEX M. BRILL
January 18, 2008; Page A13

The fed funds rate currently sits at 4.25%. Fed Chairman Ben Bernanke has recently emphasized that “more pronounced responses” and “stronger action” may be appropriate for the Fed given the uncertainty arising from a range of possible future economic outcomes. Yesterday Mr. Bernanke cautioned Congress about the risk of stimulus that comes too late and could be “actively destabilizing.”

[Push this through, Now! – Let Us Print More Money!] Where is this money coming from, and am I still going to get taxed by a government that has even less money this April?!

…[A]lthough the political calendar suggests that now is the time to launch the stimulus debate, the economic data are far from compelling. While some on Wall Street have recently issued forecasts for recession, the data to date only indicate elevated risks.

Congress should explore public policy that will encourage those workers to find new jobs, acquire new skills or relocate to more prosperous locations. That too should be the focus of debate this year. Good public policy cannot be the result of a focus on micromanaging consumer demand to meet the objectives of the congressional and White House political calendar.

The first bolded section is what McCain told Michigan, while Romney was promising that the Federal Government was going to bring more jobs to Michigan.

The second bolded section is what Ron Paul is always a “kook” about – The Fed can’t print money, tell the public what to do with it, and let congress shape the economy negatively just because they can’t afford their plans – because they have already spent a trillion dollars on Iraq. And they still can’t afford their work even after they dip into the petty cash box called “social security.”

[click here for Wall Street Journal article in full]

–Luke–

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