Feds Keeping Secrets?
July 18, 2012 (AAPLTrader)
Federal Reserve Chairman Ben S. Bernanke discusses economic issues today in front of the House Financial Services Committee.
Chairman Spencer Bachus pointed out the key to better economic growth for long term is not monetary policy; it’s the high unemployment rate that needs to decrease.
“When the Fed talks about independence, what it’s really talking about is secrecy, not transparency,” says Rep. Ron Paul.
The jobless rate among African Americans is an issue that needs to be addressed and is not going to be fixed by creating a monetary policy. Making payroll cuts in small business’, having to keep under 50 employees just to not have to pay for the expensive Obamacare is another push to higher unemployment. The Congressional Budget Office (CBO) estimates up to 1.25 million fewer jobs by 2013.
“The rising tide will lift all ships” says Bernanke. Click to Tweet this quote.
Another issue brought up was looking at the direction in the expansion of Medicaid, which is a great drive for creating employment. An additional Quantitative Easing (QE) is not going to create more jobs, just more uncertainty. Congressman Al Green states that unemployment is cyclical and has heard a lot from people about the current economy being worse now than in 2009, which Bernanke begs the differ. He states that the economy has been growing since 2009.
Ben says there is more the Feds can do for the employment. This is a big frustration for citizens in the U.S. because it shows us that there is a way to shift growth in the economy, but they’re not willing to use the tools yet.
See what people are about the market in the AAPLTrader community room, Here!
When talking about the Libor scandal, why has nobody been criminally charged with fraud? Banks reporting shady numbers to make them look stronger is a criminal act and should be acted upon. Bernanke says that they have no control on what happens in the Libor scandal, but the committee opposes stating the Feds have a large influence and should act immediately to eliminate further fraud. Up to 16 banks involved in the Libor scandal makes this the biggest scam in the history of the market, according to Congresswoman Maxine Waters.
Mr. Bernanke reports that the economy is still growing even though not everyone is satisfied. Auto business is stronger, housing is stronger, banking is better, but the middle class is struggling more and more cities in California are filing bankruptcy. Ben says the economy needs to grow over time, not overnight. If congress does not act on fiscal policy, then the fiscal cliff will come and we’ll have higher taxes and less money to spend. Congressman Jeff Miller points out that we don’t need housing to be a leader for the U.S. economy; we need manufacturing to lead the way.
As the banks get stronger, the middle class gets weaker. More money into the economy creates a financial crash soon to come. I think the best way we can fix our economy is to be more conservative with our money and get international sales going so manufacturing can create more jobs and more money for the U.S. citizens. Let’s help Europe get a financial structure going so we, as a world, can move forward while growing.
Eric Consiglio- AAPLTrader.com
in the World!