Nobody Knows What Is Holding Back The Economy

http://www.forbes.com/sites/robertlenzner/2012/09/19/nobody-knows-what-is-holding-back-the-economy/

Richard Fisher, the CEO of the Dallas Federal Reserve Bank, told a Harvard Club audience in New York tonight that not a single official of the central bank or any of the regional banks or their staffs, has the foggiest idea what is troubling the U.S. economy and what policy, if any, can get the economy “back on course.”

Fisher was the sole member of the Board of Governors to vote against the introduction of QE3, an open-ended promise from Chairman Ben Bernanke to continue buying some $85 billion of bonds and mortgages until economic growth recovers sufficiently to create significantly more jobs for the millions still unemployed.

Fisher made a worrisome point when he reported that he asked CEOs whether they would spend more money on “job-creating expansion” if the cost of borrowing was reduced by 25 basis points or 1/4 of 1%– one of the stated goals of Bernanke’s decision to do QE3. The answer; 9 of every 10 CEOs said No!!!

The outspoken central banker shocked the audience by starkly declaring; “Nobody on the committee, nor on the staffs at the Board of Governors at the 12 banks, really knows what is holding back the economy. Nobody really knows what will work to get the economy back on course.”

I call BS.  I believe some know the destructive consequences of debt monetization, one of extend and pretend.  They just can't speak the truth until they are out of office.