As we get closer to the end of the tenure of U.S. Federal Reserve Chairman Ben Bernanke, pundits are falling over themselves trying to predict who the next Fed chairman will be.
Larry Summers, supposedly U.S. President Barack Obama's favorite for the job, caused the markets to soar when he took himself out of the running.
That's left Janet Yellen, the brilliant vice chair of Ben Bernanke's clubhouse and the former head of the Council of Economic Advisors under President Bill Clinton, as the default favorite.
But I've got news for all those folks frantically trying to handicap who will be named the next Fed chairman.
It won't matter.
Any euphoria from the pick of the next Fed chairman won't last. It may take six months. It may take two years.
But no Fed chief will be able to fix the fundamental problems with the U.S. economy that very few Americans comprehend and many mainstream economists seem eager to avoid.
There are four long-term major drags on the U.S. economy, and no Fed chief will be able to do anything to fix them.
Why? Because outside of the inflation needed to pay off our massive debt levels, the fundamental problems are Congress' responsibilities.
Yet Washington has somehow made the central bank the focus of economic planning and development in America – which is completely backwards. Pumping and borrowing don't offer real economic growth, just the façade of improvement. It offers political cover, but nothing of substance.
It's paper shuffling and rabbit tricks. It's the same shell game mentality of Lehman Brothers accountants.
It's going to be fast, political, and brutal for Americans…
Why the Next Fed Chairman Is Doomed to Fail
The best efforts of the government and the Federal Reserve to paper over the gravely serious problems with the U.S. economy over the past several years are bound to come unraveled sooner or later.
The next Fed chairman will have little choice but to simply pave over the wreckage with more loose policy and accounting gambits.
Here's what he or she faces…
There is not one positive suggestion coming from this publication. Its far too easy to complain. Dime a dozen.
Um… the suggestion would be to reduce regulations and stop pumping money. Do you read?
It's called "reality". At least they are telling you it is there. Then read those like Peter Schiff who have the answers.
The real answer is brutally to collapse the economy and crush the little guys so that the rich and powerful can dramatically increase their wealth and power for political gain. If Republicans were in control of the presidency now, the Fed would be doing basically the same policies, there would be little complaining from the conservative financial writers and most aspects of the economy would be presented as positive, if not rosy.
#4 is the key. The jobs that made this country great are GONE.
You hit the nail on the head. "It's all part of a backward economic culture gone awry. "Excellent article.
"There's only three ways out of this…"? "There ARE only three ways out of this." Subject-verb agreement is important.
This is one of the most informative, honest, poignant articles I have read in a long time. I wish the mainstream media were not liers.
INTERVIEW WITH ROMAN EMPEROR NERO
Nero:
I would suggest forced austerity (budget cuts) brought on by interest rate spikes, reduced service (outsourcing), moderate (4-5% inflation), and lots of time. The longer we wait and fiddle around, the more likely Rome will burn.