The Fed’s New Clothes.
by Richard Hutner
The headline reads, “Fed Announces Aggressive New Stimulus To Combat Unemployment,” and everyone is supposed to cheer. Buying bonds, keeping interest rates low and any number of other policy twists and turns may stimulate the financial sector, but from the vantage point of the millions of unemployed, the Fed is “naked” . . . full of bluster, but without any real means to effect change.
OK, maybe that’s not entirely fair, the Fed has improved the general economic environment: aerating the soil, adding nutrients and watering generously. Trouble is, there aren’t enough “plants” in the garden.
They have done all that they can do. Isn’t it time for America’s importers to step up and find sources here at home? Orders and more orders, . . . now that would provide a real stimulus.
