Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Qe Safeguarded 3M American Jobs, Says Federal Reserve Chief Ben Bernanke

Recommended Posts

http://www.telegraph.co.uk/finance/economics/8314582/QE-safeguarded-3m-American-jobs-says-Federal-Reserve-chief-Ben-Bernanke.html

The Federal Reserve's quantitative easing (QE) programme may have safeguarded 3m jobs in the US, Ben Bernanke told Congress, as he also sought to dismiss concerns about the threat of inflation.

The central bank's chairman said that recent work research at the Fed suggested that the two rounds of QE – or printing money – done by the Fed since the financial crisis have provided real support to the country's jobs market. However, he cautioned that drawing direct links between the policy and specific job creation is never straightforward

Mr Bernanke's appearance on Wednesday before the Budget Committee was his first before Congress since November's mid-term elections saw Republicans seize control of the House of Representatives. Paul Ryan, the chairman of the committee and one of the most outspoken critics of the second, $600bn (£370bn) round of QE, repeatedly questioned Mr Bernanke over whether the Fed's policies are stoking inflation in the US and threatening the value of the dollar.

"There is nothing more insidious that a country can do to its citizens than debase its currency," said Mr Ryan, who as chairman of the committee will play a key role in how Washington eventually tackles the country's deficit.

The Fed chairman insisted that inflation is not a problem in the US, but that the bank would review its current programme of QE – scheduled to finish in June – should a faster economic recovery lead to a sharp rise in prices.

The second round of QE, which the Fed embarked on in November to fire up the recovery, has proved particularly controversial. Critics claim it will inevitably lead to inflation and do nothing to cut unemployment.

The jobless rate has tumbled from 9.8pc to 9pc in the past two months, but Mr Bernanke cautioned that it will take much longer for the unemployment level to fall back to around 5pc.

"It will be several years before the unemployment rate has returned to a more normal level," he told the committee. The unemployment rate has been above 9pc since May 2009, the longest streak above that level since records began just after World War Two.

However, he did strike a more optimistic note on evidence that the recovery is becoming more self-sustaining as consumer spending and business spending picks up.

How can the recovery be self-sustaining every time the economy falters Ben you rush in and pump more free money into the system to boost "growth".

I love the claim he's saved 3m jobs, Ben is that 3m jobs saved permanently or just temporary until the sugar rush wears off?

Share this post


Link to post
Share on other sites

http://www.telegraph.co.uk/finance/economics/8314582/QE-safeguarded-3m-American-jobs-says-Federal-Reserve-chief-Ben-Bernanke.html

How can the recovery be self-sustaining every time the economy falters Ben you rush in and pump more free money into the system to boost "growth".

I love the claim he's saved 3m jobs, Ben is that 3m jobs saved permanently or just temporary until the sugar rush wears off?

So, assuming QE has been about 2.3 trillion, that is a little over $750,000 per job.

Good value, but if I was one of those workers, I'd have rather had the 3/4s of a million cash in hand.

Edited by Tiger Woods?

Share this post


Link to post
Share on other sites

Ben and his predecessor have destroyed many moer millions of jobs with previous understating of inflation and the creating of debt, liablities and increased costs for US companies.

The number of companies that have disappered under their economic guidance or offshored nearly all their jobs is in the 100,000's.

I didn't think anybody could be as disastrous as Greenspan, I could be wrong.

Share this post


Link to post
Share on other sites

If it takes 750,000 to get one job back.. to get all 13 million jobs back will take abotu 10 trillion more. Which is nearing my prediction that the fed balance sheet will ultimately have to expand to 15 trillion.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.