Wednesday, April 08, 2009

Questions about Obama and Co's "Interventionist" Strategy

In terms of my previous work with regards to Obama's mistake is compromising the economic status quo players....

We can see that Bernanke is definitely deserving of an A for effort in terms of avoiding the mistakes the policymakers supposedly made before and during the great depression.

However what if the kinds of approaches that might have worked then won't work or don't apply here? What if we are dealing with something much deeper than as an issue of a housing bubble that has infected the financial sector?

What they are basically is that they have to pursue Fed credit policies contrary to what people have been educated to see as normal reason and logical judgment in terms of the role of government. This is of course be very much contrary to conventional wisdom about the state of the economy. The idea of a president ejecting a CEO of one of the largest American corporation just shows how far things slipped in a very short period of time.

While it is good to see that on some level Bernanke has some concerns about possibly a deeper problem, on the public level at least he seems to give little indication that he sees a problem on a fundamental level such as relating to the distorted dynamics of the national economy and unsustainable indebtedness of the world's lone superpower.

The Fed's powers are limited because it is long term economic policies put in place neoclassical economists that's the ultimate cause for America's economic malaise. This led to the shift towards debt spending to finance American's economic prosperity and a focus on short term individual gain for a very rich few over the long term economic security of the vast majority.