The deficit’s shrinking, the polarization in DC means nothing much will be done on anything for the next 4 years, the banks and corporations are sitting on huge piles of cash, and inflation remains well below the Fed’s recently announced 2 1/2% target.
Gorilla asks: “So why is the Fed still doing so little about unemployment, a problem it could solve by giving people free money?”
We’re now nearly 5 weeks on from Gorilla’s prediction that the Obama Administration, outside of a miraculous retaking of the House and a few executive branch regulatory decisions, was more or less finished on April 10.
And we’ll be spending the summer talking about the Justice Department, Benghazi, the debt ceiling, Angelina Jolie’s breasts, and any other manufactured triviality, while nothing is done to address the scourge of unemployment that is destroying the lives of Americans by the millions.
Our country is polarized and only one political party is interested in governing.
So, it’s depressing to be right, as depressing as it is to watch the right ruin the country.
Gorilla says: “Being wrong means making progress, same as it ever was!”
1) The Bush Administration engaged in torture. There’s no doubt about it all, it was morally repugnant, and all involved should be put on trial for war crimes.
2) The gun control “compromise”, which is utter junk, will not pass the Congress of the United States. Nearly 90 Americans will die by gunshot today.
3) The immigration Gang Of Eight “compromise” will not pass the Congress of the United States. We need more immigration, especially high-skilled immigration. Building a fence is insane.
4) Whoever is found responsible for the Boston bombings, we can be sure that no one in law enforcement will be held accountable.
5) Tens of millions of Americans cannot find work, and no one in power is doing a thing about it.
Gorilla says: “It’s not a happy time and this is not a happy country!”
It’s Euroland, of course, with the highest unemployment rate ever!!!
And it’s all entirely due to the stupidity and cowardice of the worst political leaders since WWII.
What’s needed is never what’s done:
1) Cut interest rates to zero.
2) Undertake a stimulus on the order of $2 trillion.
3) Announce a higher inflation target of 5% until unemployment gets below 6%.
Instead, we get the Fourth Reich: economics as morality play, austerity as proven failure, and no willingness whatever to take responsibility for the lying.
Gorilla says: “Angela Merkel needs to be out of the picture as soon as possible, so for once do something right, German voters!!!”
Unemployment, unemployment, unemployment!!!
And nobody’s listening at all.
We’re barely keeping pace with population growth. What’s needed is serious stimulus, on the order of at least a trillion dollars (two trillion would be better).
Such stimulus should be spent on: a federal jobs program aimed at fixing America’s woeful infrastructure and direct grants to the states to enable the rehiring of teachers, policemen, and firemen.
Instead our leaders waste time on nonentities like Kerry and Hagel, or nonstarters like immigration reform, or nonsense about gun control.
Gorilla says: “Hire people and most of our problems will be solved!”
Unemployment, of course, as claims continue to be way too high…
For all the garbage spewed by Mitt Romney this week, the fact remains that no one in either party is doing a damned thing about unemployment.
Ben Bernanke’s solution, shoveling more money at the bankers, may or may not work.
Why the Fed doesn’t simply send everyone a check and eliminate the middle man is beyond understanding.
Most of the blame lies with the Know Nothings, who would rather destroy America than lift a finger to help anyone other than the rich.
But Democrats aren’t proposing anything.
What’s needed is large scale stimulus and a jobs program.
It doesn’t matter if such ideas are defeated by the Congress: run on that platform and get more Democrats elected.
Gorilla says: “Millions need not be idle, but the brains of our leaders remain stuck in neutral!”
DNC: Who cares? Nice to see Democrats unified and on message, but the message is very pedestrian. Not much to say about unemployment, too much attention to unimportant deficits, and nothing at all about reducing the influence of both Wall Street and the Pentagon. Obama will win reelection, but not much will happen until and unless the Democrats regain the House and end the filibuster.
Euroland: A small but necessary first step. The proof will come when Greece is let go and in whether higher inflation and more consumption will be allowed to occur in Germany. The betting here is that the crisis will continue.
Iraq and Syria: probably the least reported major international news story. Iraq’s in bed with Iran to back up Assad, and the US isn’t doing much to stop it, yet again demonstrating the utter pointlessness of the war in Iraq. And this is our ally?
Afghanistan: A dead loss that should have been finished a decade ago. We’ll be out before 2014.
Gorilla says: “A great week for rhetoric, but inaction still speaks louder!”
Unemployment, of course, which remains disastrously too high…
The Fed’s making its usual “might do something more but nothing that could be considered serious” to address the issue. 2% inflation remains a higher priority for Bernanke and company than the misery of millions.
The President could do more (spend some TARP money and hire people, for example, or direct the Treasury to send everyone a very large check), but politically he’s essentially powerless on the matter because the Congress doesn’t care to do anything at all about unemployed Americans.
Gorilla says: “And so the lost decade continues…”
Russia: proving once again that it is little more than a backward country ruled by KGB thugs and kleptocrats, a punk rock band gets 2 years for “hooliganism” aka thinking that peaceful assembly was a human right, while the Moscow city government bans gay pride marches for 100 years. You don’t need a gulag when you’re grinding your country into the dust.
Syria: descending into civil war which will likely take Lebanon down with it. Still no sign of an international consensus, so the bloodshed will continue.
Paul Ryan/Mitt Romney: there’s nothing to say about these two amoral, cowardly liars that they haven’t said already.
Iraq: also on the cusp of civil war, the sooner we’re out for good the sooner a settlement can be reached. Since they have 60% of the population, while controlling most of the government and the firepower, the Shiites will win.
Afghanistan: the disaster continues. It’s clear there’s absolutely no reason for us to remain another 2 years. If Obama is reelected, we’ll pull out next year.
Asian island madness: who cares?
Unemployment: should be the number one issue, but has roughly the same importance in this election as the question of which Asian country owns which island. A disgrace, but what do you expect when both parties essentially serve only the wealthy?
Gorilla says: “Another birthday for me, another year of pointless repetition to overcome!”
Inflation’s running well below the Fed’s 2% inflation target, while unemployment remains above 8% and the Fed continues to do nothing.
What’s needed is QE3 for you and me: lots of money provided directly to Americans. The Fed could buy up and refinance all the mortgages in the country. The Fed could send a check for $10,000 to every American. The Fed could announce a much higher inflation target (5% would be about right) that will be pursued until unemployment drops below 7%.
But the Fed does nothing, primarily because its notion of independence means it can’t get too involved in helping the US economy during an election year.
Such an approach is what it is: cowardly and amoral.
Gorilla says: “Stupid or evil, it makes no difference, the Fed is a disaster!”
Gorilla's BlogFollow @gorillameek on twitter.
