Monetary policy paralized

Bernanke May Face ’Self-Induced Paralysis’

By Rich Miller

As a Princeton University professor,Ben Bernanke castigated the Bank of Japan in 2000 for a “case of self-induced paralysis” that led to a decade of stagnation. Now, the Federal Reserve chairman may be allowing the U.S. central bank to fall into the same trap after its second round of quantitative easing ends this month.
By all but ruling out another cycle of bond purchases, Fed officials have left themselves with little in the way of policy options to respond to slowing growth and rising unemployment. This raises the risk that the U.S. will remain saddled with what Bernanke himself has called a “frustratingly” sluggish recovery that leaves millions of Americans out of work.
Full text
Comment: While China is about to hit the wall, the US is paralized and Europe drowning - it couldn't be worse. Incompetence all over the place: blockheaded Chinese communists, cowardly presidents and central bankers who follow a wrong map.