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FirstQuaker -> RE: Bernanke Headed Through Dewey Sq (10/19/2011 11:00:22 AM)
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quote:
ORIGINAL: xssve
Greenspan and Bernanke are similar only in that their primary responsibility is to serve the Fed, that's what the Fed chairman does - Bernanke is, however, more concerned with deflation than inflation, in fact current inflation is deliberate, because Bernanke is more worried about deflatio:
quote:
"The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand – a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers. Likewise, the economic effects of a deflationary episode, for the most part, are similar to those of any other sharp decline in aggregate spending—namely, recession, rising unemployment, and financial stress."
Wikipedia: Bernanke Doctrine
Greenspan experienced the inflationary 70's, Bernanke has studied the deflationary forces that have been more of an issue since the Eighties, Japan,etc.
Greenspan was all about the tight dollar, Bernanke likes a loose dollar, these policies are in fact the polar opposite - they're both convinced that monetarist policy can fix anything, and if they share a weakness, that would be it, IMO.
What this means for producers is that ts good time to get into the export business, inflation and loose dollar would make us competitive again in the global export market where we've been losing ground since the late Seventies, so the incentive to outsource jobs is weaker under the Bernanke doctrine, but for investors it's still a question of margins, specifically w/regard to regulatory and monetary costs: i.e., if they can make more money relocating to where labor is cheap and regulations weak, they'll do that.
And that, I'm afraid, is republican policy in a nutshell which panders to investors and protects profit margins at the expense of wages and employment, i.e., their constant carping about unions, minimum wage, regulations, etc., the rationale being we have to become a third world country in order to compete with third world countries in the global market, so any and all of this current situation is patently the result of republican policy, and deliberate policy at that, it's no accident.
Nor is the result of democratic policy: it wasn't Carters policy, it wasn't Clinton/Gores policy, it isn't Obama's policy, it's policy instigated by Reagan/Greenspan, furthered considerably by Bush/Greenspan - although you might as well call it all Bush/Greenspan, since Reagan was basically a cutout., a "face".
Bankrupting the government, getting rid of SS, regulating small business while letting corporations do whatever they want, even financing them through both subsidy and tax cuts - it's all policy designed to reduce wages and create a loose labor market - a buyers market.
Seems to be working, eh? Congratulations.
Clinton, that fine corporate Democrat, worked it hard too, but he wat least was clever enough not to let the thing fail on his watch..
Just call it multinational corporate swindling policy and you are accurately describing the thing. And no, I don't see enough difference between Bernanke and Greenspan to notice.
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