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Guest Post: Americans Don't Have Jobs, Will Ben Keep His?
Submitted By Dylan Ratigan
You want to do something about jobs? Well, considering a different Fed Chairman might be a good place to start.
Nothing would more clearly display the inability of our leaders to
deal with the disastrous state of our economy than easily reconfirming
Ben Bernanke for another round at the Fed on the same day that they
hold a "job summit" in a harebrained attempt to try to figure out how
to create jobs in this country.
So far in his tenure, Chairman Bernanke has already told us that housing prices won't go down, the subprime market will be "contained", unemployment won't get to 10% and that instead of regulation, those responsible Wall Streeters who used credit derivative swaps could just be trusted to use them "properly". Of course, he thinks this performance should be rewarded with more power and utter secrecy.
If the definition of insanity is doing the same thing over and over
again and expecting different results, does that make Bernanke crazy
for still basing our nation's economic policies on his terrible predictions? Does it make Congress crazy for reconfirming him? Or does it make us crazy for voting these people into office??
Defenders like to point out what a fantastic job Chairman Bernanke
has done "rescuing" our economy from supposed CERTAIN DOOM, utilizing
his formidable expertise on the Great Depression as his guidance (or cover) for providing an infinite supply of money to our most culpable banks with no strings attached.
Dropping the future wealth of America from the sky is a pretty easy way
to put out almost any economic fire, but in this case our superstar
fireman also happens to be one of the primary arsonists.
So what does Bernanke's failure to be a proper steward of our nation's banks have to with jobs?
Unlike any other business, banks and insurance companies are the
only companies that do business with the wealth of others. Banks are
also the only business granted a list of special privileges and responsibilities.
This was done to encourage banks to take the savings of others and lend
it out to American businesses and individuals, with the goal of helping
grow new ideas and businesses that serve the current and future needs
of society and, in the process, create jobs that help fulfill those
needs.
But our banks haven't been serving the interests of the broader economy for quite some time.
Instead of being incentivized by the government to lend money to all the innovators, investors and workers in this country, our banks are either hoarding cash, playing the spread between low interest government loans and higher yields or just flat-out gambling through the giant and ongoing insurance fraud that is the derivatives market.
The Federal Reserve and other government programs are literally pouring a potential $23.7 trillion of taxpayer money into bucket with a giant hole in the bottom and wondering why there are no jobs.
Would you work if you could steal money without consequences? Would
you do the hard work of lending money to the small businesses of
America if you could just make more gambling it in swap markets of New
York and never have to worry about the losses?
This economic model is not geared towards jobs. This is not capitalism. This is not American. This is a crime.
So when the very same government proclaims today at a so-called
"jobs summit" that, by golly, they really want to try and come up with
some ideas to help you get a job, tell them a good place to start would
be to deal with the recent job performance of one of our economy's
chief arsonists.
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Obama promised Change but nothing has changed. Sending more troops when he vehemently promised otherwise during the elections. Changing financial regulation but keeping Bernanke at the helm and keeping the pro Wall Street stance. Democracy is overrated. Whats the point of voting when it really doesnt count. As hard working Americans keep losing jobs to overseas and watching the transfer of wealth from them to the rest of the world while inflation creeps higher and higher. The fact that this bizarro world keeps happening on an ongoing basis for long enough might entice people to think that there is a permanent paradigm shift in the economy in how the financial markets function. I would love for Bernanke to lose his job because its a first tiny step for change, but I think it wont solve much, especially when the best candidate to replace him is someone who thinks like him. Obama needs to realize that the change we need is a new direction, and not replacing the hands that steers it.
+6
Jesus.
Obama was for the war in Afghanistan during the election!
Why does everyone from Olbermann, to Michael Moore and beyond not understand this?
I said it during the election, and I keep saying it,
Obama, at best,= a black Bill Clinton.
2008=1932, and we just elected Hoover to a second term.
We are in unchartered waters.
Dumbass americans get exactly what they deserve when they cant understand that the guy they are voting for is for putting more troops into the mid east/central asia than dumbfuck W had.
Im sick of this shit.
"Meet the new boss, same as the old boss". I can't get this classic WHO song out of my head and it's appropriateness can really be appreciated over the last several election cycles.
Having lobbied at both the state and federal levels on natural resource issues, I soon learned that there is not a dimes worth of difference between the D's and R's; they will each screw you, but in different ways. We have one party rule with two different factions.
We had the opportunity to correct some of the problem with term limits, but my colleagues were some of the most vehemently opposed to the idea; it would be too much work to 'retrain' a new cadre of legislators after every election cycle.
This country is dangerously close to blowing apart at the seams. Any respect for the rule of law is becoming a joke. When the jokers in this administration can't/won't even pay their taxes, why the Hell should I?
I guess we DID get fooled again with Obamao. All suit and no substance and a fancy orator at that(with a teleprompter albeit)
We can only hope that our congressmen can 'do the right' and clean this mess up, but I think that is expecting too much. If the money can ever be removed out of politics, we might stand a chance of turning the ship around.
White House is to the point of just using the best suggestion to try to stop job losses. Email to: hopeforpositivesecondderivativejobschange@wreckovery.gov
Damn, Dylan's really laying it out. I'd like to see him deliver this on air!
Dylan - what a great job you do every day - such courage is appreciated.
The latest jobs report makes it look like the job market is turning.
Just in time for Ben's re-anointment. So every Senator is going to be wondering if they should mess with the new success.
Unfortunately the banks own our government. Therefore Ben will keep his job. :-(
Bernanke, the world's supreme enabler, lacks the intestinal fortitude required to make difficult, painful decisions. That alone makes him unqualified to run the Federal Reserve.
The WH just announced that the unemployment rate could "tick higher". Which means it will tick higher because they obviously already know the numbers. So, what are we looking at now? 10.4%?
But please, no worries, really, Jobless claims, fell.... green shoots!
This doesn't feel like a recovery...yet market ticks higher and higher...
Ben Bernanke is a clear and present danger to the United States of America.
I do not use that term loosely.
History has already proven that this is the case and if he is allowed to continue, it will be reaffirmed.
Heard last night that some country (forget which) was going to use their excess 'bank bailout funds' to fund other gov't projects. Wondered how long it would take the US Admin to jump on that - looks like they were already spending BAC's 'repayment'
12-03 10:27: Gibbs says White House considers using TARP funds for jobs bill
This is all surely quite legal.
Wont that help buoy the markets if WH finally do something about the job situation?? I guess these green shoots will grow from the short grassy variety to bamboo like, if thats really true. Of course, the sad fact is that the American people ALWAYS have to play second fiddle to the Wall street greedy bastard bankers when everyone is arms wide open waiting for help.
If anyone really believes that any money will go to create real, sustainable, non-public sector jobs... I have a TARP to sell them.
Dylan Ratigan is one of the very few voices in the popular media speaking for the people. We need more like him who will spread facts instead of spin. Dylan, you should really familiarize yourself with the American Monetary Act, which I believe will soon be proposed by Dennis Kucinich. You can find it here - http://monetary.org/ It is the simplest and most logical solution to our economic problems.
I have no illusions that Bernacke is an idiot - he is merely a Keynesian who fails to recognize its monumental failures.
But in the back of my mind there is a little voice that says there must be something more to their actions besides kicking the can down the road and reflating their way out - look the reason they are destroying the dollar could be a longer term plan to devaluate the dollar with the ultimate goal of making the US again competitive on the world manufacturing stage. If they do succeed in taking the dollar down to the 40 range, we will be on par with the emerging economies and investment in the US should skyrocket
allowing the US to bring back foreign jobs and rebuild. In effect, we would be defaulting on our debt via devaluation instead of outright default.
The problem is, there simply isn't enough world demand to support any new investment in manufacturing the US may create. It is truly a vicious cycle which I believe will inevitably deflate all asset values, result in the worst depression ever seen and as well, wars will inevitably result.
The real question is BB's replacement. I'll take BB over Larry Summers anyday! After all a weak dollar and increasing foreign investment may be the only solution to unemployment.
I just hope next year's leg down in housing, CRE, and banking doesn't involve anymore gov't intervention.
Let the Fed keep its independence, let Congress tackle the deficit, and pray Obama can direct 2 wars and form some credible foreign policy for Iran/Israel.
Pray for your country! God Bless the USA.