Rate just went up here. Health insurance will cost about $12,000 per year for a young and healthy family of 3. And this is the cheap insurance. We have to pay the first $10,000 of expenses each year, before the insurance kicks in. No, I’m not exaggerating.
It’s the headwinds.
That’s the problem.
According to the Bernank.
“Bernanke and his supporters argue that the sluggish recovery and lingering unemployment are more the result of temporary headwinds, such as tight credit conditions and housing-market weakness, and can be cured with monetary aid.”
Or is it something else
“His critics blame structural changes, such as a mismatch between job openings and skills.”
I think I am firmly in camp 2.
I suppose it would be hard for the Bernank to throw up his hands and say, “sorry guys, I’ve done what I can. Maybe you can do a bit of fiscal magic?”.
All that debt out there cannot be paid back. And will this be China’s century?
The Bernank does not seem to even have a 9th grade physics understanding of how wealth is created. He has spent so much time worshiping the token pile that he thinks the token pile IS the wealth. Biblical Hubris.
Well, I did considerably better than 9th grade at physics and knew sod all about wealth creation until quite recently. I do have some sympathy for the Bernank, he has the responsibility of keeping inflation down and also keeping unemployment down.
The two sort of conflict a little.
I think he should be relieved of the job creator role and left with solely a monetary responsibility. The role of job creation, or rather the creation of an environment that will create jobs, should be on that Obamah dude’s shoulders through fiscal and general policies.
The Bernak can do no more, IMO, through his levers of monetary action.
The Bernank has caused many of the problems we are facing. Debt is negative wealth, or shortage of wealth. Interest bearing debt is “exponentially negative reserve” as coined by Warren Pollack. The system collapsed like any Ponzi scheme, wealth was consumed and replaced with debt until the system collapsed. Liquidation was the only answer. Instead, more debt was created. The debt is now so far in excess of wealth production that the system has no choice as to collapse. Many of the people that did this understand it, but they don’t want to give up the political power that all of this debt they create represents. They would rather see prison camps and forced slavery, than to admit that they consumed the wealth and destroyed the economy.