There is No Plan to Fix the Economy!

Greg Hunter’s USAWatchdog.com 

I, and many others, have said when it comes to the economy, nothing has been fixed.  I thought Federal Reserve Chief Ben Bernanke underscored that fact when he spoke yesterday in Washington D.C. for the Joint Economic Committee.  Mr. Bernanke said in prepared remarks, “There have been some positive developments: The functioning of financial markets and the banking system in the United States has improved significantly.”   Of course, there was not a word about the recent credit downgrades for three big U.S. banks.  I also don’t see how the banks are in so much better shape with many of their stock prices tumbling.  Bernanke also admitted, “Nevertheless, it is clear that, overall, the recovery from the crisis has been much less robust than we had hoped.”  (Click here to read the complete text from Bernanke’s prepared remarks.)  Maybe that’s why the Fed recently froze a key interest rate at near 0% for at least the next two years.

Bernanke is still saying that lethargic growth of the economy is due to “temporary factors.”  And, yet, he also told the Congressional Committee the so-called economic recovery “is close to faltering.”  I don’t see how these kinds of back and forth contradictions are not the sign of a Fed Chief with a clear view of the economy, let alone with a plan to fix it.  The fact is the Fed’s lax regulations, easy money policies and massive bailouts are a big part of why the economy is in the shape it is in.  To be fair, it is not all Bernanke’s fault.  First of all, Alan Greenspan was no “maestro.”  The last Fed Chief who could call himself that was Paul Volcker.  He raised interest rates to the moon to kill inflation, and Wall Street hated him for it.  In the years leading up to Mr. Bernanke’s appointment, Greenspan was quick with his own bailouts and never saw a regulation he couldn’t bend or cut.  It was Greenspan that pushed to get rid of Glass-Steagall, and from that point in 1999, it was all downhill.    

Congress was basically taken over by Wall Street years ago, and instead of statesmen, all we have now are mostly bagmen.  Nobody has the spine or political will to do what is necessary to right the ship of state.  Congress cannot agree on anything resembling a financial plan to get America back on track.  Congress is so divided that it has flirted with shutting down the government several times—this year.  Now, the so-called “super committee” is supposed to cut $1.5 trillion from federal deficits by the end of next month.  (By the way, this is not really a cut; it just slows the growth of government spending.)  Yesterday, Bernanke warned Congress about this “crucial objective” by saying, “The federal budget is clearly not on a sustainable path at present. The Joint Select Committee on Deficit Reduction, formed as part of the Budget Control Act, is charged with achieving $1.5 trillion in additional deficit reduction over the next 10 years on top of the spending caps enacted this summer. Accomplishing that goal would be a substantial step; however, more will be needed to achieve fiscal sustainability.”  

 Fat chance that is going to happen with Democrats and Republicans hopelessly deadlocked.  One side does not want to cut spending, and the other doesn’t want to raise taxes. So, if the “crucial objective” is for politicians to get the finances of the U.S. in order, then there is no plan.  Warren Buffett would have a better chance of climbing to the top of Mount Everest than the super committee cutting $1.5 trillion.  By the way, the President’s recent $450 billion jobs bill wasn’t even brought up by either party when they were questioning Bernanke.  How’s that for respect.  It looks like neither party considers it a viable plan for financial recovery.

Bernanke, once again, said that the Fed is prepared to take action if necessary.  But, when asked if the Fed would consider a third round of major stimulus, Bernanke said the Fed has “no immediate plans to do anything like that.”  “No immediate plans”?   My bet is, sooner or later, Mr. Bernanke will be forced to start another round of money printing (quantitative easing QE3), or let the whole economy collapse.  I’ll say it again; there is no plan to fix the economy.

Comments
  1. Jerry Frey

    “Nationwide, employment among young adults 16-29 stood at 55.3 percent, down from 67.3 percent in 2000 and the lowest since the end of World War II. Young males who lacked a college degree — typically black and Hispanic — were most likely to lose jobs due to reduced demand for blue-collar jobs in construction, manufacturing and transportation during the downturn. Among teens, employment was less than 30 percent.”

    http://napoleonlive.info/economics/class-warfare-facts/

  2. ARMY

    Sounds like ARMAGGEDON so ARM AH GETTIN OUTA HERE!

  3. droidX-G

    Great article. Fed is trying to expand economy and Congress is going in the other direction.

    • Greg

      Thank you DroidX-G for the comments.
      Greg

  4. droidX-G

    Greg, I truly believe that all the banks would have failed if they didn’t do the first bailout. And a lot of the money has been paid back. Not all but a good portion of it. Everybody see the end over the horizon like the sun rising. Me, I am applying sun screen

  5. Sam

    Dear Greg,

    Great post.

    Actually, there is a plan to “fix” the economy.

    It’s called “point fingers.”

    :-D

    • Greg

      Sam,
      Yes!! That’s it!!! You hit the nail on the head and I love the comment!
      Greg

      • Sam

        LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOL!

    • BLT

      LOL well done sir! to bad they cant point their fingers into a mirror huh?

  6. Art Barnes

    Greg, good writing once again. As usual, no one at the helm with a storm brewing. Obviously, there is no plan, our government always has been a “crisis” government, but at least in the past when there was a crisis a plan and or fix was discussed and action was taken, all out the window now. Wall Street has choked the system with its greed and demand for fresh meat (quanatative easing) which the government & Fed feeds with fiat, if they don’t campaign contributions
    could dry up; basically, a bribery system. Well, Greg, this is where
    we are, a inept two party system who are led around by the noses by the elite. Not only don’t I see a plan on the horizon but I see a random decline to third world type status as a result of no plan. Pray I am wrong.

    • Greg

      Art,
      The elite are so stupid and selfish that they can’t even see THEY are at risk too.
      Greg

  7. To QE or not

    The U.S. economy cannot be fixed!

    • Greg

      To QE or not
      That’s what QE is all about. It is just buying time.
      Greg

  8. Rob

    Hi Greg!

    It is the love of money and power that drives one to control another.

    Bernanke is a frontman for a very powerful banking cartel that has “the plan” of collapsing currencies through banking insolvancy.

    They are in the process of bringing the euro to parity with the dollar and then bringing them both lower.

    This will bring the pain necassaary to introduce thier plan to save the world. Just one more step in thier 100+ year plan. This is nothing new to those who have eyes to see.

    For more indepth understanding of things to come please check out our web site http://www.unleavenedbreadministries.org

    In CHRIST! Rob

  9. Mike

    Again, spot on ! Keep your hammer banging away. Thank you !

  10. C Young

    Mr. Hunter,

    I heard you this morning on “The Brad and Brit Show”. Great work and truely a good explanation of the There is No Plan, Plan. I feel you nailed it when you stated “Congress was basically taken over by Wall Street years ago, and instead of statesmen, all we have now are mostly bagmen.” I recall reading that a congressman had to raise $250K per day to prepare for re-election campaigns. Is the answer public financed elections? Is that how citizens get their voice back? Or, will politicians and corporate interest game any system placed in their way?

    • Greg

      Thank you CYoung!!!
      Greg

  11. Matslinger

    ..Home » Economy, Entertainment, News
    There is No Plan to Fix the Economy!

    This would have looked good as a 1980 headiline when David Rockefeller
    kicked off electronic monitary policy, and trippled the national debt.
    Anyone over the age of 50 who suffered through the last 31 years,
    living within ethical parameters, fully understood that Amerika was a
    retroactive failure waiting to happen, and if they dared to say so,
    were ridiculed by herd…. the herds are now stampeding INTO the slaughter house.

    • Art Barnes

      Yea, I agree, average americans were living within the ethical peramators while the elite didn’t let the rules curtail them. I saw it all happen as you and everytime I argued against it the “herd” laughed. Frankly, a blind man could have seen it coming, nothing good ever comes out of greed and curruption.

  12. bob D

    Greg,

    yours today is priceless summary of the idiotic Fed to-date

    that greenspan was the king of idiots and did bad stuff for usa

    however, Bernanke is the smartest of all, but is playing the Fed for
    his own reasons and objectives and etc… right now he is helping obama continue to destroy USA-econ as well as hamper the world econ,

    but of course obama does not need help to destroy USA,

    for example take a look at his health care new legislation, is in front of our supreme court by half the states who are going nuts over the threat of complying with that insane admin law, as specially designed by obama……..

    yesterday Kaiser Health, the biggest health provider in usa announced a raise in health care premiums to $15,000 per year for a couple with 2 kids, phew! here comes massive bankruptcy for a lotof folks;;;;

    but in line with obama’s view that insurance cos should profit greatly so they give him more loot, and that docs too given Kaiser pays most of their docs over a million$ per year, multimillion dollars to the docs is the name of their game;;;;;

    can you imagine the loot they will have in hand via obama health?

    yep Medicare has to pay Kaiser health insurance premiums for all those receiving social security for their coverage of medicare,
    given the hi profits off this scam,

    and of course the obama health bill has nothing that improves health nor health care, but does make the insurance cos and all providers rich, while the patients get lip service and the healthy get nothing except the honor of paying $15,000 per year to insurance cos to make their profits and donations to the obama campaign;;;;; this is making goldman sacs look like a peanut org with monkeys and organ grinders on every corner holding out their tin cup for donations, o well

    as bad as obama health bill is as a major fiasco, a joke, named health but having nothing to do with health and all to do with making profits for docs, providers, insurance cos, Kaiser, etc, his other sabatoge of USA via lethal admin is astonishing to watch, wait til the europeans find out (here comes ww-3)

    enough for now, i am gonna go vomit.

    • Greg

      Thank you Bob D for the comment and analysis.
      Greg

  13. Frank Brady

    Things have gone terribly wrong. The modern world is descending into madness. Everything is unraveling, economically, politically, and socially. War clouds are threatening again. The very earth itself seems to be manifesting its distress through bizarre weather, catastrophic earthquakes, tsunamis, etc. The gloom is pervasive. It is hard to imagine how all of this will end well.

  14. bob D

    Greg,

    above you mention the grand sums of trillions of bucks that congress
    is tinkering with while obama spends quadrillions of bucks out the back door and under the table ;;;;;;
    unless they talk about quadrillions
    they are blowing steam in your face doing nothing,
    so watch out for the chest puffing while tinkering with a mere trillion while the good ship lollypop is leaking quadrillions

    the reasons obama made bernanke freeze interest at zero per cent for two years, and he will renew it, is so foreign money does not come into usa but goes to other foreigners, only a nut would buy paper that pays no interest, why gamble? take that money and put it under your mattress where it earns no interest too but remains spendable by you at least to buy food in the upcoming disaster economy where food will cost an arm and a leg, daily….

    the obama idea is to make foreigners rich and make usa folks poor and stupid and he is succeeding, too bad

    when bernanke was asked and said no plans for more quant easing he meant no publications of his wild spending worldwide, e.g. beefing up the central banks of his buddy nations so they can inflate their local phantom loot while no one is looking, when he gives their
    central banks hidden reserve loot for free, and as a mere bookkeeping entry rather than hard loot such as tons of gold or bulk real loot, then they inflate using bogus reserves and no one the wiser except bernanke the wizard, according to dictates by obama to destroy the economy everywhere so as to start ww-3

    your readers ought note that congress never talks seriously about the Fed. nor about their Reserves nor about they funding all nations except USA, per dictate by obama, o well, next lifetime is bound to
    be better…..

  15. bob D

    Greg,

    i am gonna quit for today, gotta go watch the circus called
    new york stock exchange and chicago commodities versus all other
    worldwide funny money shops offshore and on the sea and in the air

    the wild fluctuations merely mean the dummies operating the big funds
    and especially the big banks worldwide have shot selves in foot, continuously and now they can not find any suckers to buy their inventory build up of worthless stock etc, too bad

    esecially noteworthy is that the big banks you mentioned the other
    day plus goldman sacs the highway robbers who beat the butts of our
    dept of justice daily just for fun and jollies…..

    these banks, and good olde reliable goldielocks saxs,
    operated by college grads, college trained robots with no individuality, who have no brains and no common sense
    and certainly no skills of playing the markets for honest profits,
    end up scamming each other while the band plays on, is all musical
    chairs from now on while the big banks and other big shots go bellyup
    one at a time, easy to profit off they dying, just sell short or
    better is to sell out and stay out of the clutches of banks big and
    small and otherwise, if you follow their price, equity e.g., you will see they never come up for air, highest, avg, is something like 40 bucks/share during rare prosperous times, and now during this freefall less
    so as to confuse the big funds and the sucker clients and account
    holders, o well

    what is especially irritating is they, as a monopoly of the 5
    big banks representing private holders, set the spot price of gold not once a day but twice a day and still get it wrong all the time,
    yes
    they make some daily profits while the small guys get slaughtered,
    but given their monopoly operation of commodities and especially gold
    markets they should at least be able to pay their fair share of
    irs-tax but of course they dont because there is no way irs can
    audit banks, not even one at a time, so is nice to be a bank, nicer
    to be a banker, on a trek of implosion, just watch the fireworks.

    • Anon

      They are off beat and skipping on the track. And the whole world is annoyed by their redundant brainwashing.

  16. MasterLuke

    The Bankers Eleet of this country for the most part only need a finite portion of human capital. Therefore, what they would call “peasants” (middleclass/lowerclass “slaves”) are expendible. Corruption and massive government/corporate fraud is a sad state of affairs.

  17. Tim Martin

    if you have not done so already—–search and see two seperate (2) hour videos on youtube.com the obama deception——–and ————- fall of the republic———also Gerald Celente has much to say/predict on this subject ——-trendsresearchinstitute.com

    • bob D

      Tim Martin,

      instead of referencing a long boring utubiegasexplosion why dont
      you summarize what you think are the interesting, or if not interesting then the important points????? Greg wont like it
      but will let it stand so his readers get what you glean as
      the goodies, thanks, bob D

    • harveywalbinger

      @BobD: It’s not random anon poster’s responsibility to spend his/her time watching long boring educational videos (although they should) in order to provide you an executive summary. Do your own due diligence! Freedom means deciding for yourself what to believe. In all things, stop expecting to be able to rely on somebody else.

      @TimMartin: Good video recommendations. Definitely worth watching.

      Check out http://www.freedocumentaries.org for several excellent free streaming movies. I recommend everyone watch these:

      Money as Debt:
      http://www.freedocumentaries.org/int.php?filmID=214

      The Money Masters:
      http://www.freedocumentaries.org/int.php?filmID=243

      Educate yourselves, fellow proles

  18. Kurt

    The only thing to do for the complete collapse is get out of debt, store water and grow food, meet and get to know neighbors. (To exchange talents for needs) Also have more than one source of heating and for cooking, store candles. Complete self sufficiency.

  19. Hoppe

    Fix the economy.The “fix” has been in for nearly a century beginning with the Federal Reserve Act.

    Any fix the Fed comes up with is more like the fix I had done on my dog!

    This is all about wealth transfer, to the bankers from the rest of us.

  20. Mitchell Bupp

    I listened to you this morning on the Brad and Britt Show at FM101.1. Maybe you should have asked Brad or Britt for a dollar. And them told them thank you; Now I am going to lend you “your” dollar back that “Brad or Britt” just gave you. Maybe that is a way to explain how absurd the FED controling our money supply.

    Anyway, there are no plays left in the FED playbook. The QE plays have failed; the borrow/spend economy is a bust; the deratives are nothing more than oversold junk and government is captured by corporations.

    Bernanke understand that there can not be any indictment of the banksters because it would bring down their confidence markets.

    • Greg

      Thanks Mitchell! Good comment!
      Greg

  21. Bob

    The plan is to take over WallStreet. The next move is to build a group of outside lawyers , to bring charges. Then move to DC and bring the country to the door steps of Congress and charge them with crimes of treason. It’s a plan in the making one move at a time. This is the only out come of a system that has turn against the people. You can have a job and still be a 99% that’s the power.

  22. therooster

    Greg … There’s no fix by way of a top-down solution. You cannot fix a top-down problem with a top-down solution as per “the script”. It has to be grass roots and market driven. It starts with the increase of liquidity without an increase in debt. This cannot be dome by issuing more debt and the FED is in the debt creation business. Don’t go looking to buy an airplane from your local GM dealer …. not his business. The impetus for change has to come from the market and can begin with personal monetization of gold and silver bullion by way of gold backed payment processors. These distribution tools allow for instant distribution & payment with fully backed gold weighted currency.

    Have you considered this and the power in it ? Have you considered that massive market action on this simple issue could actually reverse Gresham’s law ? Keep in mind that Gresham’s law was predicated on a FIXED value for bullion such as what we saw during Bretton Woods. People hung on. We no longer have that trade value restriction so gold is constantly becoming more & more liquid as a form of currency. Good currency can now drive out bad currency so the bad (debt) can return to where it came from …. “nothingness”. RSVP or I’ll tell Jesus you were “luke warm” :-)

    • MasterLuke

      I like this comment. You could fix the problem with a top down solution if all the top “politicans” weren’t corrupt minus Ron Paul. How far is this peaceful revolution going to go? If you can get a large minority of Americans to start participating in this event, I feel like it could be significan’t. But . . and we all know this, all that has to occur is some MEGA world problem and we would not hear about the wall-ttreet protest again from mainstream news. For example, War with Iran, Israel going to war, or a very major disaster like the Japanese Tsunami. If Wall-Street controls the white house do these same people have influence to make this event just disappear with an awful catastrophe?

  23. Mark

    As Albert Einstein said, “We can’t solve problems by using the same kind of thinking we used when we created them.”

    • therooster

      You got that right and the classic version is “You cannot pour new wine into old wineskins”. The fist shift in thinking begins with an inward look for answers. People seem to think that the elite should provide some sort of top-down solution. It’s not their precribed role in “the script”. The only solution must be asset based and come from the bottom. To do otherwise would crash the dollar very quickly. This beast must rise.

  24. Ambrose

    Greg,

    Why is there no plan to fix the economy? That is a trillion dollars question.

    The politicians in Washington, D.C. can be classified in three groups:

    1) No-Clue Group – This group doesn’t know how to fix the economy, including Bernanke. Ben Bernanke once said that he didn’t know why the U.S. economy is not getting better after QE1 and QE2. The economic problem is probably too big and too complex for them to comprehend.
    2) No-Action Group – This group prefers to do nothing about the economy. They believe that they cannot satisfy both Wall Street and voters. If they upset Wall Street, they may lose their political contributions. If they upset the voters, they may lose their votes. But if they do nothing, there is less chance for them to screw up and better chance for them to get re-elected. It is best for them to stay silent, play dumb and let others to take the heat.
    3) Don’t-Fix-It Group – This group doesn’t want to fix the economy. This group believes that the bad economy is actually beneficial to them. The worse the economy gets, the more extreme measures they can use. If the economy was good in the last three years, it would be extremely difficult for the Fed to give billions of dollars to their Wall Street buddies. This group may not want the U.S. economy to collapse, but they have no desire to fix it anytime soon.

    There is no plan to fix the economy. We can find more discussions and suggestions about fixing the economy on the Internet than from our representatives in Washington. Apparently “Fix America” and “Job Creation” are just catchphrases, the politicians are not really serious about what they say.

    As up to date, both Europe and the U.S. share the same problems – high national debts, high unemployment rates, broken banking systems, corrupted politicians, incompetent policy makers, political gridlocks and dysfunctional government. There will never be enough money in the world to pay for the “on-going” global debt problems and fix the economy.

    Here is a great cartoon for Germany.
    http://www.politicalcartoons.com/cartoon/c339aff0-80f8-48e0-92ea-dd7ff68b5cc8.html
    Germany is trying to help the other EU nations now. But the question is for how long?

    Ambrose

    • Greg

      Ambrose,
      Thank you for the link and analysis for the readers here!!
      Greg

  25. G_T_A_44

    “There is No Plan to Fix the Economy!”

    That’s because it’s UNFIXABLE!

    Expect the following:

    1. Global QE

    2. Global TARP

    3. Global Hyperinflationary Depression

    It’s in the bag.

    There is NO WAY OUT! With the exception of Default.

    http://www.globaltrendanalytics.com/

  26. Bub

    They’ve got a set of Republican waiters on one side and a set of Democratic waiters on the other side, but no matter which set of waiters brings you the dish, the legislative grub is all prepared in the same Wall Street kitchen.”
    — Huey Long, campaign speech for the re-election of Senator Hattie Caraway (D-AR), 1932 (Williams p. 589)

  27. bryan

    Greg – Please don’t ever say that the conflicted debt reduction committee won’t cut 1.5 trillion. They will do so in the years
    5 thru 10 – when there is no power to enforce it. Are there any
    members of congress who are today required to follow the congressional edict of five years ago?

  28. Art Barnes

    Greg, as to the recent Dow Jones Average (market) upward trend in middle of all the economic mess I say “beware the bear rally”.

  29. Norm Ezzie

    I refer to the book titled: Limits of Growth written in 1972! There you will see their plan! Need I say anymore here? I think not-

  30. g.johnson

    of course there is no plan to fix the economy. the “plan” is to destroy it.

  31. Bruce Stebbing

    HI Greg, Why won’t the USA government approve the pipeline from Alberta, Canada to the refineries in the USA? This would create more than 10,000 pipeline constuction jobs, plus longer term related oil refining jobs in the USA, for all the oil and gas we have in Canada to sell to the USA. The oil sand reserves in Canada have more oil than Saudi Arabia. Plus Canada has a nearby, safe and secure supply of oil and gas for the USA. Chinese and Korean companies have already formed partnerships with Canadian companies on some of the oil and gas projects we have in Canada. We are only scratching the surface of the huge resource wealth Canada has and we wish American companies would get involved. This is a huge opportunity to create jobs for both countries. Even with 8% unemployment in Canada, companies cannot find skilled trades people for all the jobs ,so they have to import foreign workers. The USA has a lot of skilled workers who could be working in Canada. The Republicans in the USA are at 11% in the popular vote in the USA, which is the lowest it has been in a long time, so they need to get busy and approve the mega projects waiting to start and get people working again. Canada lacks skilled labour and investment. There are oil and gas reserves all the way up the MacKenzie River Valley in Canada to the oil and gas fields in the Arctic ocean as well. I hope the Wall Street protests spread to all the counties affected, by the unregulated bankers in the USA.

    • Greg

      Bruce,
      I have no Idea, but it is a good question.
      Greg

  32. Dave Mowers

    Right on spot Greg,

    Why fix it when they get all the money? People realize that four Wall Street investment banks issue 95% of all derivatives contracts like collateralized debt obligations. That these banks are deemed “too big to fail” and that for every contract there are two parties(one winner one loser) to the contract. The money to pay these contracts when the economy retracts comes not from the investment banks or investors but from taxpayers. By allowing them to issue unlimited derivatives AND backing the payment of those contracts with the American taxpayer these banks have effectively CAPTURED THE MONETARY SYSTEM. All money printed from now on will only be used to pay these contracts every time we hit a recession. The economy will never expand again, there will never be new jobs until the economy collapses during a recession and all money printed is used to pay derivative contract holders or
    the banks will fail.

    This is it, there is no reason to bother trying to do anything anymore, one class of Americans in one industry will now get
    everything because they will receive all the money printed from now on. 600 Trillion in derivatives registered so far with the bank for international settlements estimated to reach 750 trillion by the end of the year. Running at a pace of 150 trillion a year, how long will it take to print the actual currency to back all these massive Wall Street credit lines?

    Think about it.

    We Demand Equal Access to Credit and Capital Issued by the People’s Bank- The Federal Reserve!

  33. Occupy

    who cares what wall street likes.

  34. Occupy

    Occupy America. its time for us to take back whats ours.

  35. peter

    Fix this and then you fix the economy P-(P+I)=D

    • Greg

      Peter,
      Please educate us all. What is P-(P+I)=D ?

      Greg

  36. peter

    P -(P+I)=D principal – (principal+interest) = debt

    • Greg

      Thank you Peter!
      Greg

  37. peter

    And there is the fix P – P = 0

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