In the previous post, our reader ILoveCapitalism details the pitfalls of the Federal Reserve’s policy of “quantitative easing”. Other economists and pundits have wondered about its political implications, including the Weekly Standard’s William Kristol who called the move “a foolish step, but one that’s also a remarkable acknowledgment of the ineffectiveness of three and a half years of Obama economic policies.”
He’s not the only one to note how President Obama’s ostensible economic ally Federal Reserve Chairman Ben Bernanke just gave Mitt Romney, in the words of the American Enterprise Institute’s James Pethokoukis, a “huge gift“. He imagines Romney saying that the federal reserve chief. . .
. . . finally admitted what most folks outside Washington already knew: The economy, three years into a supposed recovery, remains in terrible shape and is unlikely to get much better anytime soon.
In fact, Bernanke said there’s such little hope for improvement that he and the Fed are going to embark on a radical new experiment in money printing in order to try and do something, anything, to boost growth and create jobs.
In short, the Fed chairman’s move clearly suggested Obamanomics isn’t working today and is unlikely to work any better tomorrow. We cannot stay the course. And since Washington won’t act, he will.
Listing a series of actions the government could have taken (but instead rejected) to stimulate growth, entrepreneur Jeff Carter calls the Fed’s move “kicking the can down the road until the economy improves” and reminds us that Japan tried a similar move, but it didn’t work.
Let us hope Mitt Romney responds to this move as Petothoukis suggests, noting Bernanke’s acknowledgement that Obama’a plans aren’t working (else why would we need QE3) and detailing his plans to get the economy going again. He would do well to cite programs the Obama Democrats rejected (especially those Carter details).