Federal Reserve Bank Chairman Ben Bernake appeared in front of congressional representatives to explain his reasoning for the move the Fed announced recently, affectionaltely dubbed QE II. And, whie his reasoning may make sense to some, there are a few things I would like to ask.
Sometimes, Things Just Rub Me Wrong Mr.Bernake said that the move the Fed made didn't contribute to the crisis currently being experienced in the Mid-East. But, I beg to differ...At least partially on this. While the Fed didn't contribute to the uprising, the inflation that occurred in the futures market did drastically drive up prices in the smaller countries like Egypt, Yemen and Tunisia. In places where the average days wages is only $2 this is a serious problem. Hunger will drive the masses to drastic measures. I believe the social programs that exist in the U.S. have protected our elected officials from this kind of uprising. They have no social programs, and very few charitable organizations.
A Few Things That Won't Be Calculated Bernake painted a brighter outlook on the unemployment rate than I think actually exists. He said, "Notable declines in the unemployment rate in December and January, together with improvement in indicators of job openings and firms' hiring plans, do provide some grounds for optimism on the employment front." I guess he doesn't know how the unemployment rate really is calculated. The main reason that the unemployment rate dropped in these months is that, in January alone, over 500,000 people quit looking for a job, due to frustration. Another thing Mr. Bernake can't calculate into the numbers is the negative effects of oppositionism, otherwise known as "Nay-Saying." If our leaders cannot reach an agreement to proceed, well, the only direction that remains.
And, again, comes that age old question: If PROgress means to move foreward, what should CONgress mean?