Saturday, April 21, 2012
Mike Whitney on the Bernanke put and its consequences
Mike Whitney describes the Bernanke put that the Fed has delivered to Wall Street. But wait, there's more.
According to the Fed's James Bullard, President of the Federal Reserve Bank of St. Louis,“Stabilization policy should be left to the monetary authority, which can operate effectively even at the zero lower bound,”… “Unconventional monetary stabilization policy has been quite effective over the last three years, making fiscal action redundant.” …….. “the turn toward fiscal approaches to stabilization policy has run its course.” (“Fed’s Bullard: Best To Leave Economic Stimulus To Fed”, Wall Street Journal)
Whitney: "What Bullard means by “Death of a Theory”, is that the theories of John Maynard Keynes–which led to 50 years of prosperity — are not going to be used anymore. The Fed is going to continue on the same path that it is now, implementing policies that only benefit the banks and investor class. That means that the frayed fiscal lifeline that presently keeps the US middle class from sinking beneath the waves will eventually be severed leaving millions of people jobless, homeless and destitute."
Read it at Counterpunch
Bernanke’s Plan for the Middle Class
by Mike Whitney
(h/t Kevin Fathi via email)