Saturday, August 28, 2010

Bernanke's Jackon Hole Speech and Gary North's Translation Part I

This list of concerns makes clear that a return to strong and stable economic growth will require appropriate and effective responses from economic policymakers across a wide spectrum, as well as from leaders in the private sector.
Translation: There is going to be central planning like we have not seen since the end of World War II. Corporate leaders are going to fall in line, or else they will face some really daunting problems.

Fiscal policy – including stimulus packages, expansions of the social safety net, and the countercyclical spending and tax policies known collectively as automatic stabilizers – also helped to arrest the global decline.

Translation: Also required were budget deficits larger than anything seen since World War II.

The prospects for household spending depend to a significant extent on how the jobs situation evolves. But the pace of spending will also depend on the progress that households make in repairing their financial positions.

Translation: We don't know what the pace of spending will be. We don't not know when the job market will recover.


full text of Bernanke's speech

Gary North's translation

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