Berenke: "Monetary Policy cannot be a Pancea"

[JazzyTallGuy]

Originally Posted by marcopolo

Fed Chairman Bernanke laid things out pretty clearly yesterday: we have reached the limits of what monetary policy can do. That he understands this is very positive.

Here are the problems:

1. A stagnant job market, which leads to
2. Sluggish sales, which leads to
3. Moribund industrial production, and
4. Little demand for services, which contributes to...
5. A stagnant job market.

Isn't it JUST ABOUT TIME everybody figured out the linkage between employers and employment?

Shouldn't we be doing everything we can do to simplify things for employers, cut the unnecessary reguatory overhead, stop the war on capital, improve labor market flexibility?

Boeing sinks billions into a new plant, is weeks away from staffing it, and the government tells them they can't build planes there.

Investors put up capital for plants and equipment and payrolls, and the government crushes their rights and takes their property (Chrysler lenders and GM bondholders).

The EPA rams through massively costly changes in the Clean Air Act, flushing tens of billions of dollars of power plants, cement plants, and other productive enterprises down the toilet.

Pelosi conjures up the monstrosity of Obamacare with her legislative magic, and not a single employer anywhere can possibly understand what their benefit costs will be in 2014, or 2019.

The idea that you can love the concept of gainful employment and hate employers has just been proven wrong--and the Fed cannot fix it for you. It is time for the President to smack himself on the forehead and say, Eureka! After exhausting every other possibility, he needs to do the right thing.

It's NOT a government problem it's a corporate and banking problem.

Corporations decide to cut the wage increases for middle income wage and hourly employees and increase executive compensation to astronomical levels.

There is no government regulation that is going to change the fact that a garment worker in China makes $200 a month, or a worker in a solar panel factory in China makes $1.80 an hour, while on in the U.S makes $27 an hour or a certifed public account in Sri Lanka makes $5,900 a year while one in the United States averages $59,000.

Here in the United States the largest corporations have clearly indicated that don't give a damn about the American people or the economic future of this country. While other countries around the world have made national policy decisons in concert wtih government, labor and business not to send key manufacturing and research and development expertise to foreign countries. There is no such mindset in Corporate America.

You can get mad at governemnt all you want and Corporate America will continue f**King the American people and laughing all the way to the damn bank while they are doing it.

[Swingblade]

At one point Uncle Ben said besides QE he had " many tricks up his sleeve" now we all know he is a one trick pony. It is about time that his plug has been pulled he is a idiot and was just making matters worse for all Americans unless you are part of the banksters.

[marcopolo]

Originally Posted by JazzyTallGuy

It's NOT a government problem it's a corporate and banking problem.

Corporations decide to cut the wage increases for middle income wage and hourly employees and increase executive compensation to astronomical levels.

There is no government regulation that is going to change the fact that a garment worker in China makes $200 a month, or a worker in a solar panel factory in China makes $1.80 an hour, while on in the U.S makes $27 an hour or a certifed public account in Sri Lanka makes $5,900 a year while one in the United States averages $59,000.

Here in the United States the largest corporations have clearly indicated that don't give a damn about the American people or the economic future of this country. While other countries around the world have made national policy decisons in concert wtih government, labor and business not to send key manufacturing and research and development expertise to foreign countries. There is no such mindset in Corporate America.

You can get mad at governemnt all you want and Corporate America will continue f**King the American people and laughing all the way to the damn bank while they are doing it.

Corporate America is currently employing over 100,000,000 Americans, and our biggest problem is that we would like Corporate America to employ more.

There are two fundamentals at the heart of our disagreement. I believe it is neither possible nor wise to sustainably pay more than market value for labor. The hard edge is that the market value of labor is impacted by global markets as well as by productivity. The onus is on each of us to improve our value in any way we can: attitude, work ethic, skills development, any way we can. Some people are screwed; that's why we have welfare.

The other fundamental disagreement is that I believe that free trade lets us get more for everything we produce, and pay less for everything we consume. America as a whole and other countries are all richer as a result. Yes, there are winners and losers--but we are poorer if we spend $50 for a US-made polo shirt that is worth $15, or $800 for a $350 television. And it would be dishonest to pretend that a US worker producing $800 televisions has a productive and worthwhile job, even if it were possible.

I'm no fan of the multimillion dollar bonus babies, either, but we form a mindset about business that has nothing to do with a huge fraction of real businesses who are producing the goods and services we need and want. A few score people are held up as examples to justify poorly thought out policies that affect millions of our most productive citizens and enterprises.

Back to my original points--you have an attitude about big business, so you agree with the NLRB on Boeing? You agree with EPA mandates that have no relationship between costs and benefits? You think the employment situation is improved by pounding employers?