Tag Archives: recovery

“Golden Goose Eggs” – by George Will

A great article from Mr. Will, which makes a nice companion piece to our post from a week or two ago (“When the Fed has to Print Money, …Just to Print Money“).

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There’s no happy ending to all this, merely a selection of worse ones.

Political Musings-At the Sunset of My Life

George willRICHMOND— A display case in the lobby of the Federal Reserve Bank here might express humility. The case holds a 99.9 percent pure gold bar weighing 401.75 troy ounces. Minted in 1952, when the price of gold was $35 an ounce, the bar was worth about $14,000. In 1978, when this bank acquired the bar, the average price of gold was $193.40 an ounce and the bar was worth about $78,000. Today, with gold selling for around $1,600 an ounce, it is worth about $642,800. If the Federal Reserve’s primary mission is to preserve the currency as a store of value, displaying the gold bar is an almost droll declaration: “Mission unaccomplished.”

Today the Fed’s second mission is to maximize employment, and Chairman Ben Bernanke construes the dual mandate as a single, capacious assignment — “promoting a healthy economy.” But the Fed’s hubris ignores the fact that it anticipated neither the…

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Slowing, not Growing

Was listening to the radio while I was doing a home project this weekend. Some guy calls into the talk show and says, basically, that he can’t understand why folks are so upset with President Obama over the economy, since we’d experienced 20-some months of job growth.

And then I just laughed, and shook my head. I hear that same talking point over and over, and over again on MSNBC, ABC, Huffington Post, etc., and it’s spin. Pure, unadulterated spin.

First of all, we’ve covered this already. We aren’t growing. We can’t. There are too many new government restrictions coming at us daily, and the only certainty in the economic landscape is not promising. So you have companies going with the sure things, being unwilling to take the sorts of chances that must happen for an economy to actually grow.

Obama’s recovery, orchestrated wholly by him, has been a disaster. All talks of “It’s Bush’s fault” aside, when you take over a job, a company, etc.,… it can be argued after 6-8 months that you’re working on it. A year: sure, things take time. But over THREE years?? In that amount of time, you need results. And in Obama’s case, we needed to be adding jobs at a much, much greater pace in order to make up the ground that we lost.

And that, ladies and gents, is exactly what is not happenin’.

From Larry Kudlow @ RealClearPolitics.com:

You would think $1 trillion in spending stimulus and $2.5 trillion of Fed pump-priming (via Quantitative Easing – JTR) would produce an economy a whole lot stronger than 1.9 percent gross domestic product, which was the revised first-quarter number. And you’d think all that government spending would deliver a whole lot more jobs than 69,000 in May.

But it hasn’t happened.

The Keynesian government-spending model has proven a complete failure. It’s the Obama model. And it has produced such an anemic recovery that, frankly, at 2 percent growth, we’re back on the front end of a potential recession. If anything goes wrong — like another blow-up in Europe — there’s no safety margin to stop a new recession.

And that brings us to the grim May employment report, which generated only 69,000 nonfarm payrolls. It’s the third consecutive sub par tally, replete with downward revisions for the two prior months. It’s a devastating number for the American economy and a catastrophic number for Obama’s re-election hopes. All momentum on jobs and the economy has evaporated.

Read the whole thing.

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Coincidentally, I heard Larry Kudlow being interviewed on Don Wade & Roma (a Chicago radio show) and he summed up his feelings towards the current administration by quoting Oliver Cromwell from 1653:

“You have sat too long for any good you have been doing lately… Depart, I say; and let us have done with you. In the name of God, go!”

To which I say: Amen.