Bernanke Warns of Uncertain Outlook,

[silverchris]

http://www.guardian.co.uk/business/2010/jul/22/ben-bernanke-us-economy-unusually-uncertain


Federal Reserve chairman Ben Bernanke warned last night that the US economy faced "unusually uncertain" prospects, and said the central bank was ready to take further steps to bolster growth if needed...

Read at link,

[BabushkaLady]

Those darn UK journalists needed a little proofreading:


Federal Reserve chairman Ben Bernanke warned last night that the US economy faced "unusually uncertain" prospects, and said the central bank was ready to take further steps to bolster growth trash it even further if needed.

Low growth for several years was the likely planned outcome of current policies, but even this forecast could be blown off course, Bernanke told the Senate banking committee.

"Even as the Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognise that the economic outlook remains unusually uncertain. I'm making this up as I go along . . . Am I repeating myself?

"We will continue to carefully assess ongoing financial and economic developments, and we remain prepared desperate to take further policy actions as needed."

He blamed the banking sector, which continued to labour with poorly performing loans, as one of the chief drags on the ability of companies to expand. The near collapse of the Greek economy before its bailout by the European Union was also blamed for delaying the US recovery. everybody but the Fed!

He pointed to weak employment, with more than half of the unemployed having been out of work for more than six months. Average growth in private jobs of 100,000 a month this year was "insufficient to cut the jobless rate materially", and it would probably take a "significant amount of time" to restore the 8.5m jobs lost in 2008 and 2009, Bernanke said in prepared remarks. For the real scoop see Shadow Stats.

He told Senator Christopher Dodd, chair of the committee: "Part of the reason I'm concerned by the situation is that this is the worst labour market since the Great Depression. And I should know!! People who are unemployed for a long period of time see their skills atrophy. They may become demoralised, and short term unemployment becomes long term unemployment. We need to be very concerned." The US housing market also remains weighed down by a lack of consumer confidence, he said. Common sense is taking hold, oh my!

Bernanke echoed echoed echoed echoed deep concern at the Bank of England's monetary policy committee's last meeting that the danger of the economy falling back into recession may force further monetary loosening and an expansion of quantitative easing. Bank governor Mervyn King has said he is concerned at headwind confronting the UK economy. A lack of lending by banks was a key factor holding back growth in the economy, he said last month. and the month before.

Bernanke's report showed the Federal Reserve had met 40 times to discuss ways to foster more lending in the economy. In the minutes after Bernanke's testimony was released, shares on the US exchanges fell and Treasuries climbed. The Standard & Poor's 500 Index slid 0.3% to 1,079.90 at 2:05pm in New York. Yields on two-year Treasuries fell to a record low 0.56%. The dollar strengthened against the euro. But just hold on; he hasn't dropped the next big plan. That will be saved for October . . .

[Hatha Sunahara]

Wouldn't it be nice to know what the Fed's real agenda is? It certainly isn't what they are telling us. What the are telling is is pure 'doublespeak'. It's good that a few of us can decipher it.

Hatha

[ximmy]

His inspiring confidence and forceful surety makes me want to snuggle up in his protecting arms... :yuk

[lapis]

I just read a hilarious blog post about this:

"Often Wrong Bernanke Sticks Fork In US Dollar"
http://goldharvest.blogspot.com/2010/07/often-wrong-bernanke-sticks-fork-in-us.html

You'd have to be dumber than dirt, blind as a bat, or asleep at the wheel not to know exactly what occurred in the Precious Metals and currency markets this afternoon. If you need any indication of how pathetically desperate the US Federal reserve is to maintain the illusion of a recovery in the economy, look no further than the price charts of the precious Metals and the currencies today.

What are the odds that at PRECISELY 2PM est this afternoon the price of Gold would suddenly drop $10 an ounce and the Dollar would rally hard against the Euro? Seriously. What are the odds?

Who needs odds. At 2PM est Bumbling Ben Bernanke, aka Pinocchio, aka Often Wrong, aka Professor of Make Believe, took a seat before the Congress to deliver the central bank's semiannual report on monetary policy. Remember folks, this is the same knucklehead that sat before this same Congress and told them that the sub-prime crisis would be contained, and that the cost of it to the government would be less than $200 MILLION. [Um, yeah right.]

How many times have we seen this pompous ass go before Congress and tell his fairy tales and NOT see Gold fall and the Dollar rise? Every time he shows up somewhere to speak in public, no matter what the sentiment of the day is, as soon as he "goes on" Gold falls and the Dollar rises.

This BS doesn't "just happen", it's made to happen. Think about it...

Today the first words out of this droolers mouth are 1000% Dollar negative:

"Even as the Federal Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain."

"Unusually uncertain"? We don't make this stuff up folks. Would you buy the currency of a country whose top Central Banker was "unusually uncertain" about the prospects for his country's economy? I DON'T THINK SO. But miraculously, the Dollar rises swiftly on the "uncertain" words of this wizard of high finance. Of course this forces the price of Gold to deteriorate just as quickly...despite the fact that Gold has been joined at the Dollars hip for the past two months. What a f*ckin' joke.

"We remain prepared to take further policy actions as needed to foster a return to full utilization of our nation's productive potential in a context of price stability."

This mouthful of manure is code for, "We plan to drop money from helicopters if we have to, in order to maintain this illusion of economic recovery." This announcement is 2000% Dollar negative.

"Although fiscal policy and inventory restocking will likely be providing less impetus to the recovery than they have in recent quarters, rising demand from households and businesses should help sustain growth," Bernanke said.

Absolute BULLSHIT! Rising demand from households and businesses? Where? Not in this country Ben, you illiterate ignoramus. I guess Ben doesn't read much of the financial data making the the news headlines of late. Retail sales are down. Housing starts are down. Credit purchases are plummeting. Loans to small businesses are plummeting. Demand Ben? Is this demand similar to the containment of the sub-prime crisis? You know, more wishful thinking? Why didn't Osama blow up the Federal Reserve instead of the World trade Center?

Bernanke said a weak job market will likely remain a drag on consumer spending, and said it would take a long time before the economy can restore the nearly 8.5 million jobs lost in 2008 and 2009.

But demand from households and business will be rising. WTF? Rising demand in a weak job market that has lost nearly 8.5 million jobs. Yeah Ben, we don't call you Bumbling Ben for nothin'!

Ben of course once again blamed those silly Europeans for all our fiscal problems here in the States. Damn, if it wasn't for them, our economy would be flying high. The mark of a loser and a desperate man is the man who blames others for his own mistakes. It's called a failure to take responsibility for your own actions. Ben, the US Federal Reserve is the sole reason the United States IS in a Depression TODAY. Sugarcoat it anyway you want. Have your banking buddies "buy the Dollar" on your command. There is no recovery, and there will be no recovery unless and until the US Federal Reserve is destroyed by the American people.

So there you have it. Dollar up, and Gold down on Absolute Bullshit from that man with diarrhea of the mouth, Bumblin Ben Bernanke. This testimony could not have been more Dollar negative. The rest of the World sees that, and they will be quick to punish Pinocchio for his fib.

[Ponce]

Any one with half my brain should know by now that we are in a depression and in deep doodoo.....did I say half my brain? uffffffffffffffff they must have a blank brain ;D