Courtesy of Greg Hunter’s USAWatchdog.com
There are some big messages being put out by the government that appear to be for the sole purpose of reassuring the public that everything is under control. Bernanke appeared on “60 Minutes” 10 days ago to tell the public that he is “100 percent” sure inflation is not going to be an issue, and that it’s a “myth” the Fed is “printing money.” I am not going to touch on the veracity of his statements. I did that in a recent post called “CBS Allows Fed to Spread Disinformation Unchallenged.” I want to explore why the Fed Chief felt it necessary to go on nationwide television to, basically, tell America and the world that he’s on top of the economy? He could have gone on Bloomberg, CNBC or held a press conference at the Fed and got coverage for his message. Why didn’t Mr. Bernanke ask to be on “60 Minutes” when he announced an unprecedented second round of more than $600 billion of Quantitative Easing in early November? That was a big announcement–what he did 10 days ago was not.
Fast forward to last Friday. See Bill Clinton and Barack Obama on stage to announce a united front to push a new tax package that extends the Bush cuts to all. Everyone in the mainstream media seems to describe this as “impromptu,” but I think it was staged to send the message that things are under control. Bill Clinton enjoyed one of the best economies in U.S. history. He is the face of prosperity and good times. Long time ABC Correspondent Ann Compton, during a radio interview this week, described the feeling in the room as “desperation.” The network coverage was just the opposite when it came to describing the “impromptu” press conference of Democratic Presidents. Newsbusters.org highlighted the gushing network coverage Monday, “. . . Good Morning America’s Dan Harris raved, “That was an awesome bit of political theater. An amazing atmosphere in the room, I have to imagine.” Reporter David Kerley saw Clinton’s Q&A as a return to the 1990s and “the form that he showed in that White House briefing room when he was President.” On NBC’s Today, Mark Halperin touted Clinton holding court with reporters for 20 minutes (after Obama exited) as “great political theater.” Finding lessons for the current president, he enthused, “Bill Clinton figured out how to compromise, but still show people he was true to his principles and fighting hard for the middle class.” (Click here to read the entire Newsbusters.org post.)
I have to admit, for a moment, I did get a warm fuzzy feeling that things were on the right track again. Then, cold hard reality sank back in. The Hill reported Monday, “The package could add $900 billion to the national debt, if it is made permanent, and this increases the chances the U.S. would one day default on its debt. ”From a credit perspective, the negative effects on government finance are likely to outweigh the positive effects of higher economic growth. Unless there are offsetting measures, the package will be credit negative for the US and increase the likelihood of a negative outlook on the US government’s Aaa rating during the next two years,” Moody’s analyst Steven Hess writes.” (Click here fro the complete Hill post.)