Federal Reserve Bank of St. Louis President James Bullard, a voter on policy this year who has backed record stimulus, said weaker U.S. economic reports prompted the delay in a tapering of bond buying by the Fed.
“Weaker data came in,” Bullard said today on Bloomberg Television’s “Bloomberg Surveillance” with Tom Keene and Michael McKee. “That was a borderline decision,” and “the committee came down on the side of, ‘Let’s wait.’”
Oh really? Data — particularly on employment — just got weaker?
So perhaps Bull(crap)ard would like to explain exactly when the data has improved since the bottom of the crash when it comes to employment, which The Fed claims is part of their “criteria.”
Oh, I know, the so-called “unemployment rate” has come down. But Bernanke outright lied about the employment situation in his news conference. Heclaimed that the employment picture has in fact improved — and tried to lay a big part of the shift off on demographics.
But the facts are that the working-age population is increasing, not decreasing. Despite the so-called “demographic factors” that he’d love to imagine exist,the facts say differently.
The real question is what leads Bullard — or anyone else on the committee — to believe that QE will ever work “as claimed.” What we do know it does (because it must, mathematically) is depress the purchasing power of everyone in the country.
The beatings (of the common man) will continue until morale improves — or the comman man is dead.