Rising skepticism on Bernanke's inept policies

This is just a follow up on my last post: The Fed internal conflicts start to weight in. Paralysis should be next.
Aug. 30 (Bloomberg) -- Federal Reserve officials face another round of reports projected to show weakening growth amid skepticism they have the firepower to deliver on Chairman Ben S. Bernanke’s pledge to avoid a relapse into recession.

Bernanke, in his Aug. 27 speech to central bankers and economists in Jackson Hole, Wyoming, made his strongest statement yet that the Fed alone can’t keep the recovery going. “Strong and stable” growth will “require appropriate and effective responses from economic policy makers across a wide spectrum” as well as private-sector leaders, he said.
Bernanke is already looking for excuses for his policies to have failed. He couldn't be further from the truth: printing money and abusing special privileges do not create wealth nor recovery, they destroy them. He's the one preventing the recovery by preventing the necessary readjustments.
While Bernanke said the Fed’s remaining tools, including asset purchases, will work if needed, some attendees at the annual symposium said during the weekend that the effects of such quantitative-easing measures may be weak or that fiscal policy should play a bigger role. Pressure for action may build this week as economists predict data to show hiring, manufacturing and household purchases cooled further in August.

“There’s now a cost-benefit analysis for future actions which I’d contrast with the ‘whatever it takes’ philosophy of the crisis,” Stanford University Professor John Taylor, creator of an interest-rate formula used by central banks, said in an interview. “The benefits of additional quantitative easing are quite small.”
Some Fed policy makers are skeptical of the need for further stimulus. “I have long said the recovery would be modest,” Kansas City Fed President Thomas Hoenig, the symposium’s host, said in an Aug. 25 Bloomberg Radio interview. “I think people have to realize that. We are going through major adjustments.

“I really don’t think that there’s a lot that the Fed can do,” said Martin Feldstein, a professor at Harvard University in Cambridge, Massachusetts, and member of the committee that dates the beginning and end of recessions. While additional asset purchases are probably the best option, “even if they did quite a lot of it, say $1 trillion worth, I don’t think it will have a substantial impact,” he said in an interview.
As I already said several times before, deflation has won, Bernanke has blown. There's nothing he can't do, except maybe another round of statistical mirage which will not change the outcome nor the factual reality.

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