Robert ReichWhen former Labor Secretary Robert Reich offered his solutions for ending the Great Recession in the New York Times, he repeated the same errors expressed in a CNBC debate the week before.

bankruptYou simply can’t make ends meet. You don’t want to spend more than you’re making, but the income is significantly smaller than the outgo. You’ve already tried using one credit card to pay off another — that didn’t work. Now you are rapidly sinking into a sea of debt, with no relief in sight ...

unemploymentThe U.S. Bureau of Labor Statistics (BLS) reported that the unemployment rate in the United States increased to 9.6 percent during the month of August. The BLS press release may have been tweaked by politicians, as it read that the “unemployment rate was about unchanged at 9.6 percent.” By “about unchanged,” the bureaucrats at the BLS should have written “increased from 9.5 to 9.6 percent.”

BernankeFederal Reserve Board Chairman Ben Bernanke largely whitewashed Federal Reserve responsibility for the housing bubble and resultant economic recession in testimony before the congressional Financial Crisis Inquiry Commission September 2.

US economy vs JapanJust one week after James Bullard of the St. Louis branch of the Federal Reserve Bank released his August 6 paper declaring that “the U.S. is closer to a Japanese-style outcome today than at any time in recent history” (meaning that the United States will likely have decades of economic stagnation, which Bullard blames on “deflation”), the news media have taken up a chorus against the bogeyman of “deflation” to explain the need for further social spending by the government and more debasement of the U.S. dollar (causing consumer prices to rise through inflation).