What Bernanke did Wednesday, Mises Institute’s Peter Klein explains in this excellent clip, was expose that he believes the economy is too fragile to sustain any sort of tapering or scaling back of government stimulus. What does that tell us?
That the economy is in the early stages of an artificial boom, just like the artificial boom we have been trying to get out of. Any signs of economic growth or progress that we have experienced since 2008 are solely the result of government stimulus; in other words, more malinvestment.”
Klein presents the Austrian view of what caused the original crisis (Greenspan & Bernanke), and what the effects of no-taper will be on the economy down the road.
Hint: Think Bigger.