As this is my first post on the new blog I figured I would start off with something on every one's mind: the sluggish economy. We were in a recession and now apparently we're not; although for many of us it still feels like it never ended. Mortgage defaults are still occurring every day, credit card balances are still high and politicians cannot seem to agree on what to do. And then came a speech from the Chairman of the Federal Reserve, Ben Bernanke - from Jackson Hole!
I don't know about anyone else but with all the complex problems this country has a speech from Jackson Hole just doesn't do it for me. I want a speech from the President, Congress and everyone else on the steps of the Capital Building declaring enough is enough and everyone now agrees on the future of this country. I guess you can call me a dreamer because this will never happen. So the next best option is clearly a speech from the Federal Reserve Chairman in Jackson Hole at the Federal Reserve's annual retreat.
And after all the build-up and news reports of the the markets waiting for the federal reserve to declare its new monetary policies to save the country...nothing. The federal reserve is not going to do anything at this time. Some of you may be thinking this is a terrible idea. In fact, it's only my opinion, I think that is a great idea. We don't need any more help from the fed buying back mortgages and Treasury's or lowering interest rates (not that they could be lowered even if they wanted to). It's time for the American public to take the reins and get this country back on track. Congress has proven that they are incapable of passing meaningful legislation that can solve real problems and it is simply not the fed's job to fix the economy as a whole, nor should it be. The fed exists to maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates not run the country and make decisions that the rest of us are incapable or unwilling to make.
So here is my proposal: start expecting from the government what you would expect from yourself. Would you spend more money each month than you earn with no end in sight? Would you then go to your bank and take out money against your home to walk down the streets and hand money to those in need? While altruistic, I would wager that most of you would not do this. It doesn't make sense because before long you would end up with no home, no money and no way back. I agree that removing entitlements is not an easy task and I also agree that we shouldn't turn a blind eye to those in need. But a broke America cannot help anyone and its time we start admitting to ourselves that the U.S. Government cannot do everything and remaining healthy economically. There is middle ground between helping everyone and spending beyond our means and helping no one. It's about time we start discussing what that is without standing by the party line or expecting the federal reserve to come to the rescue.
What are your thoughts?
I don't know about anyone else but with all the complex problems this country has a speech from Jackson Hole just doesn't do it for me. I want a speech from the President, Congress and everyone else on the steps of the Capital Building declaring enough is enough and everyone now agrees on the future of this country. I guess you can call me a dreamer because this will never happen. So the next best option is clearly a speech from the Federal Reserve Chairman in Jackson Hole at the Federal Reserve's annual retreat.
And after all the build-up and news reports of the the markets waiting for the federal reserve to declare its new monetary policies to save the country...nothing. The federal reserve is not going to do anything at this time. Some of you may be thinking this is a terrible idea. In fact, it's only my opinion, I think that is a great idea. We don't need any more help from the fed buying back mortgages and Treasury's or lowering interest rates (not that they could be lowered even if they wanted to). It's time for the American public to take the reins and get this country back on track. Congress has proven that they are incapable of passing meaningful legislation that can solve real problems and it is simply not the fed's job to fix the economy as a whole, nor should it be. The fed exists to maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates not run the country and make decisions that the rest of us are incapable or unwilling to make.
So here is my proposal: start expecting from the government what you would expect from yourself. Would you spend more money each month than you earn with no end in sight? Would you then go to your bank and take out money against your home to walk down the streets and hand money to those in need? While altruistic, I would wager that most of you would not do this. It doesn't make sense because before long you would end up with no home, no money and no way back. I agree that removing entitlements is not an easy task and I also agree that we shouldn't turn a blind eye to those in need. But a broke America cannot help anyone and its time we start admitting to ourselves that the U.S. Government cannot do everything and remaining healthy economically. There is middle ground between helping everyone and spending beyond our means and helping no one. It's about time we start discussing what that is without standing by the party line or expecting the federal reserve to come to the rescue.
What are your thoughts?
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