According to Harvey Rosenblum, a top economist at the Dallas Federal Reserve Bank, the American economy is at the “knife edge” between growth and contraction. He spoke at a forum sponsored by the San Antonio Chamber of Commerce on September 27. “We are in the midst of the Second Great Contraction,” he observed, adding that he didn’t think that “monetary policy tweaks” would help much. “The patient isn’t responding well to the medicine,” he said.
And so, the Fed’s inflationary policy is not creating job growth. But, according to Bernanke, it may be preventing deflation, which led to the Great Depression. But while the private sector has formidable assets which could become the basis for future prosperity, unfortunately we are stuck in the mire of uncertainty that socialist Obama and his leftist colleagues have driven us into.
And there are good reasons why this economy is treading water. First, we have a horrendous national debt which Obama refuses to reduce. Indeed, he and his socialist buddies want more debt in order to destroy our capitalist system. In fact, he has engineered the largest expansion of government in U.S. history by enacting ObamaCare, which will increase the national debt even more.
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Sam Blumenfeld (photo)