A top Federal Reserve official admits in Portland that the country’s economic recovery has stalled, not because of a need for austerity, but because there’s not enough money on the street to “prime” a recovery!
The CEO of the Federal Reserve Bank in San Francisco, speaking in Portland today, admitted to a gathering of business and government leaders that the Fed’s strategy to grow the economy while holding down inflation hasn’t worked. Yet he also said that “quantitative easing,” (printing trillions of dollars in money like it did for Wall Street and investment bankers to help “restore” their balance sheets) may be two years away for the rest of the country. A very long wait.
Critics of Federal Reserve Chairman Ben Bernanke have been beating the drums long and hard throughout the recession, now entering its 5th year, that the current economic downtown is no typical cyclic event. They contend there is something fundamentally wrong with the U.S., and to some extent the European economy as well, in that the concentration of wealth in the hands of just 400 American families and their corporations, has literally vacuumed America’s streets of disposable income. No money, no growth. Tax breaks for the rich and huge corporations haven’t worked, yet the U.S. House is poised to demand that those tax breaks (and therefore unpaid taxes) will not be available for the American people in terms of teachers, police officers, fire fighters, and construction workers. Construction workers especially, who have a “to do list” for highways, water and sewer projects, bridge replacements, airports, new school buildings, and on and on.
Here’s how the Oregonian wrote the story. Click here.