Full text of Bernanke speech far different from media summaries

Did the whole mainstream media lie about Bernanke’s speech, or were some only plagiarizing the others?

He was far more cautious than depicted.  He said that the Fed will step in as needed but he’s been saying that for a year now.

He doesn’t actually say that the QE created two million jobs.  He says that running certain models suggests that the outcome with those programs is two million jobs better than the alternative, but the results of that must be treated with caution.

He notes that there are only four years worth of empirical evidence as to the effects of this type of intervention.

He is very clear throughout that the bar is higher for non-traditional interventions.

Perhaps most importantly, he says that intervention would be in a context of price stability.

He seems to be alive to all the empirical uncertainties, limitations of computer models, potential for adverse effects, the difficulty in assessing counterfactuals, etc.

As far as I can see he nailed it.

He also pointed out that government’s role in dealing with financial issues is the critical thing to look at, with and his comments are clearly against severe austerity measures.

After reading the full text my impression is he’s the only one in the global financial mess that knows what he’s doing.

The lack of any objective analysis of the speech in the media is disturbing. 

He’s clearly loathe to have another round of QE but everybody is talking about it like it’s a done deal for September.

Maybe the conflict of interest that needs to be looked at the hardest is in the media. 

How many financial institutions own how many shares in media conglomerates?

False news reports were just used to shift global markets and send commodity prices rocketing up.  That kind of thing used to be illegal and maybe still is. 

The irony there is that the false news may make QE less likely.  

The last two words in that speech are “price stability”.

Bernanke is clear he doesn’t want to create bubbles or mass inflation.

Commodities are already in a bubble and were grossly inflated even at their 2012 lows.

So jacking up the markets in anticipation of QE makes QE look more hazardous.

The lack of any objective reporting by anyone of the most important economic speech of the year is truly disturbing.

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