Ben Bernanke and the FED never fail to amaze me. They actually think that more money printing, more debt and lower interest rates are what the economy needs. We have been following that policy since at least 2000, and what has it gotten us? Japans has done it for 2 decades and all they have are dangerous levels of debt, and a stagnant economy. The definition of stupidity is doing the same thing over and over again and expecting a different result.
How is more credit and more debt going to fix the economy when this crisis is mainly a debt crisis? More inflation is not going to solve anything except drive up prices. The US has been under intense stimulus spending since at least the later Bush years, and what has it gotten us.
What the Kenysian clowns do not understand is that prosperity comes from productivity, not from consumption. The countries doing well right now are competitively supplying the world with raw materials / manufactured goods. Germany does not have a savings problem, it has a productivity “problem” in that it is “too” competitive. Same with China. The US should start thinking about how it can become competitive again if it want to improve its economy. The same goes for the UK and the PIGS. Instead of looking for ways to make America more competitive, the Obama administration has only focused on yet more deficit spending, lower interest rates and more debt. This has only lead to more economic stagnation. Of course these measures help to ease the pain temporarily, but only delay the day of reckoning. Actually making America competitive would be politically unpalatable, because it would involve going against special interest groups from feminists to corporations. Obama cares more about winning elections and staying in power, than he does about providing the type of leadership that will move the country forward.
By the way the Keynesian clowns predicted that the Tsunami would help Japan due to all the necessary rebuilding which would act as a stimulus. Since then Japan has had its first trade deficit in decades and its economy is going no where. Peter Schiff accurately predicted that the destruction of valuable working assets never helps a country. Japan has not benefited from the disaster.