Out of Breath with the BnB 1-2 Punch

Today, Dr. Ben 'Helicopter' Bernanke and President Bush both talked about the economy, albeit at different venues.
According to the NYT, "In testimony before the Senate Banking Committee, Mr. Bernanke avoided the word “recession” in characterizing the current economy, noting instead that consumer spending and exports were keeping growth “at a sluggish pace” while the housing sector “continues to weaken.”

He added that spending for personal goods had “advanced at a modest pace so far this year, generally holding up somewhat better than might have been expected given the array of forces weighing on household finances and attitudes.”

While the risks to the overall economy were still “skewed to the downside,” he said, inflation “seems likely to move temporarily higher in the near term.”"

The same article quotes Mr. Bush as saying in a press conference that "“My hope is — is that people take a deep breath and realize that their deposits are protected by our government,” the president said. He added that economic growth “was not the growth we’d like” but expressed confidence that the country would overcome “a time of uncertainty.” The nation’s troubled financial system is "basically sound," he added." When a reporter asked what the short-term advice for Americans was in light of the high gas prices, Bush's main response was "There is no immediate fix. This took us a while to get in this problem; there is no short-term solution. I think it was in the Rose Garden where I issued this brilliant statement: If I had a magic wand -- but the President doesn't have a magic wand. You just can't say, low gas. It took us a while to get here and we need to have a good strategy to get out of it."

While Dr. Ben, along with Hank and Cox, is taking extra-ordinary measures to bail out and lend a helping hand to the financial and quasi-financial institutions with public money, Mr. Bush thinks that people should a deep breath and keep the faith. Perhaps he should add that by singing 'Don't Worry, be Happy" everything would be all right.

Wink, Wink; Nod, Nod- Lying or Signaling?

On May 30, I had written about plagiarism and falsification in an article titled "Does Education Matter?. In the broader scheme of things, the youth of today should not be held accountable for ethical lapses as they are trying to emulate their worthy elders in lying, obfuscation, corruption and other worthy traits.
Here is one example:

July 18, 2001: President George W. Bush, : "My only point is that I will assure my friends and our trading partners that we're doing our part to strengthen our economy, but we've got to work to make sure we reduce trade barriers in order for prosperity to continue; the strong dollar. The dollar is what it is based upon market. And the reason I say that is our government will not artificially enter markets. The market decides the strength of the dollar. And I would urge other countries, now, to do the same thing.

A strong dollar has got, obviously, benefits and problems for us. One, it's harder to export, but it also helps attract capital. And much of our economy relies upon investors investing in the U.S. because of the dollar. And so we understand the pluses and minuses and, therefore, let the market determine the float of the dollar."

March 5, 2002: Lawrence Lindsey, the president's economic adviser: "Our view is that we are pursuing policies that yield a strong U.S. economy, an attractive place in which to invest, and by doing so, produce a strong dollar," he said. "Those are things we aren't going to give up."

December 12, 2003.
Q Mr. President, the dollar fell again today, against the euro. Mr. Snow, your Treasury Secretary says that the decline has been orderly, boosting exports. Do you plan any intervention to stop the slide in the dollar?

THE PRESIDENT: My answer to that question about the dollar is that this government is for a strong dollar, and that the dollar's value ought to be set by the market and by the conditions inherent in our respective economies. And our economy is very strong and is getting stronger. But the policy, the stated policy -- and not only the stated policy, but the strong belief of this administration is that we have a strong dollar.

Nov. 22, 2004: President George W Bush has again said he is committed to a strong US dollar. Mr Bush said the best way to reassure those concerned about the dollar's decline was to deal with his country's large budget deficit. The US president was speaking in Chile at the end of the 21-nation Apec conference, which he attended.

Dec. 15, 2004. President Bush pledged Wednesday to work with Congress to reduce the United States' huge deficits to assure markets that his administration supports a strong dollar. "The policy of my government is a strong-dollar policy," Bush said during a meeting with Italian Prime Minister Silvio Berlusconi.

Jan. 13, 2005. President Bush.

Q: Are you concerned in the increase in foreign investment here and the fall of the dollar?

A: America is — first of all, we have a strong dollar policy in this administration. And I'm confident foreign investors will find America a good place to invest.

Aug 1, 2006: Treasury Secretary Henry Paulson: "I believe that a strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying fundamentals," Paulson said in a speech to students at Columbia University's School of Business in New York. Copies of his remarks were distributed in Washington.

June 9, 2008. Treasury Secretary Henry Paulson said he hasn't ruled out any policy option, including intervention in the foreign-exchange market, to prop up the dollar.

THE EFFECT OF ALL THIS TALK.

When the country's leaders, who are expected to be role models and are expected to set high ethical standards, behave in this manner it is no surprise that the young try to cut corners and make a buck any which way they can.