You Know Who Doesn't Agree The Economy Is Improving? Fed Chair Ben Bernacke, Who Intends To Keep His Zero-Interest-Rate Cheap-Money Policy Going Through 2014

This is monetary stimulus. You don't do stimulus in a naturally-growing economy.

Mull that one over: The Fed is declaring that it needs to run the same super-easy monetary policy when the economy is growing by 2% or 3% as it did amid the worst of the financial panic. And keep doing it past the horizon. The unavoidable implication is that the Fed doesn't think the economy will grow any faster until what would be halfway through Mr. Obama's second term. The other implication is that the Fed has no idea what to do other than to push even harder on the monetary accelerator. Maybe this time, it hopes, the economy's clutch will engage.

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It's no coincidence that such a restatement of principles is coming now, when the Fed is looking to justify its extraordinary monetary interventions. If there were any doubt about this intention, Mr. Bernanke put it to rest in his press conference when he said more "quantitative easing" is likely if growth doesn't accelerate soon.

Facts: 1.7%. Crisis-level monetary stimulus. "Quantitative easing."

Spin: Green shoots. America is Back!

Simple question, really: If the economy is recovering, then why isn't it recovering?

Thanks to ATaLien.

posted by Ace at 04:05 PM

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