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Bernanke tilts debate on key roots of unemployment

Bernanke tilts debate on key roots of unemployment
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POSTED: Friday, October 15, 2010 - 7:10pm

UPDATED: Saturday, October 16, 2010 - 3:30pm

WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke
(bur-NANG'-kee) says the high unemployment rate is tied more to a
weak economy, rather than workers lacking skills for available
jobs.


It's an important distinction to make. The Fed can take action
to boost an ailing economy, but if it's a case of mismatched skills
or other "structural reasons," there's less policymakers can do.
 

Not everyone agrees with Bernanke. The president of the Federal
Reserve Bank of Minneapolis has said job openings have increased
steadily in the past year, but the unemployment rate hasn't come
down. He said a mismatch between the unemployed and the available
jobs is likely the main reason.

The jobless rate is currently at
9.6 percent Bernanke says the Fed is prepared to take further steps to
rejuvenate the economy by buying Treasury bonds but is wrestling
with how big the program should be.
 

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Too much worthless talk goes on in this country about rich vs. poor, corporations vs. individuals, on and on.The only talk that is relevant in this economy is the devaluation of the dollar.The feds by way of the treasury are flooding the earth with dollars which make them worth less. In doing so, manufacturing is helped as our products are more affordable to countries with stronger currencies. Also, with cheap dollars, workers making $30/hr.in America is the same as making 2 Yuans/day in China.

All sounds good with the dollar's devaluation until inflation (the cost of goods based on cheap dollars)sets in. Prices skyrocket and the feds raise interest rates to "sop-up" excess dollars. Bernanke said this week that he believes that we need to print more dollars. Printing more dollars is described by the feds as "Quantitative Easing". In Jimmy Carter's presidency the feds raised interest rates to 19% annually (inflation rate). This means that prices for goods were doubling every 5 years.

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