When the Ruling Class starts to admit it, you know we’re in a world of hurt – from the Washington Times:
Vice Chair of the Federal Reserve Board of Governors Sarah Bloom Raskin said today that unemployment numbers present too positive a view of the economy, adding that the Federal Reserve might need to take more action to stabilize the economy.
Nonetheless, as many families know,” said Raskin, an appointee of President Obama’s, “the headline unemployment numbers don’t fully capture the weakness in labor market conditions.”…
Later, though, she returned to Ruling Class type and asserted that she and the rest of the people running our economy are just wise, old owls and are carefully doing what needs to be done. And, hey, if we hadn’t done all that money printing, it would have been worse! She failed to explain how all the wisdom deployed so far has led to such a lousy economy. You’d think that with a multi-trillion dollar price tag, we’d get more than a “it could have been worse” statement.
These people don’t really know what to do because they are working from a false theory – a theory that has it being consumption which makes the economy go ’round, rather than production. It is the wealth we make which makes us rich, not the money we spend…especially not borrowed or printed money. Until we start making money again (creating wealth via making, mining and growing things) we simply will not improve. People like Ms. Raskin, I suspect, haven’t the foggiest notion of this. How did the Chinese build up a couple trillion dollars of our money in their vaults? Not by spending, but by making, mining and growing things. Amazing that more people can’t see this (though being Ruling Class types, themselves, the Chinese leadership has also embarked upon a bonanza of printing and borrowing since 2008…and that will tip China in to recession in the by and by…even with their own example right in front of them, the Chinese leadership couldn’t see it).