Article Review 3

Stockman continues to talk about the impending recession. Spending and trade have all gone down after the 20 years of spending and using credit. The debt has gone up 3.7 times more than the GDP growth. However, this isn't even accurate because the growth of GDP is hidden by the growth of the credit bubble. Eventually, this growth will be liquidated. Bernanke had boasted about how successful the Feds were in ending the financial crisis and lowering unemployment to 5.1%. However, Stockman says that the Fed's ZIRP and Quantitative Easing policies aren't even related to the jobs that Bernanke was talking about. Stockman also mentions how the jobs aren't even new jobs, they're jobs that were "born-again". An example was when Du Pont had a sudden implosion and the got rid of their CEO as their sales started to fall extremely hard. This sudden implosion and extreme fall in sales was a surprise to both Wall Street Investors and the Du Pont CEO. The job market looks fine on the outside with 96,000 new jobs part of the US economy excluding government financed health, education, and social security areas. Of course, the job market is barely at the same amount of jobs before the repression. These new jobs were jobs that were already part of the economy but there was no person that filled it. Still, Bernanke boasts about the success of the Fed on creating new jobs to put the job market to where it was before the recession. Ultimately the US government has played around with the statistics to provide a favorable recovery.