Bernanke Predicts Economic Downfall
July 28, 2012 § Leave a Comment
(October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”
(January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”
If what we got from Bernanke before and during the most recent crisis was so wrong, how wrong can he be now? With recent GDP growth estimated to be limping at a pitiful 1.4%, how much lower can we fall? And remember, that figure allegedly considers the impact of inflation estimated by government officials. Using free market measures of inflation, taking into consideration the cost of commonly used goods like food, energy, and education, real inflation is north of 10%!
So what we know is that according to the government, growth is pathetic and the future quite sad. Even Bernanke agrees! According to free market thinkers, growth is negative and set to get worse. Buckle your seat belts, friends.