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Bernanke: Four More Years of High Unemployment, Perhaps Ten

February 10, 2011

WSJ reports: The Fed chairman’s forecasts suggest he isn’t likely to shift his stance anytime soon. Though the recovery has strengthened, he dismissed worries about inflation. “Inflation made here in the U.S. is very, very low,” he said, even though it is picking up abroad. The unemployment rate isn’t likely to fall back to desirable levels between 5% and 6% for four years at the earliest, he added, and could take as long as 10 years given present economic growth rates.

Got that folks? 10 years, 2021 until we arrive at 5-6% employment levels. Can you make it for 10 years? Where will the unemployment benefits come from to keep people from falling into poverty? To be sure, IF we have high unemployment for ten years, tax revenues will be constrained and social programs will be under tremendous pressure.

The sooner Americans accept the facts of our predicament, the sooner we can get to reinventing ourselves through innovation, invention, and applying our intellectual capital and the sooner we will create jobs and get back on the track to prosperity. We simply cannot rely on big business or big banks to help us out. We need to embrace localization. We need to encourage our local small businesses to work with community banks or credit unions and forget about the large banks as they helped create the sh#@!hole we are in and they are not interested in helping everyday Americans. Globalization is their game. They are borrowing close to zero percent money from the Federal Reserve and investing it overseas. So, if it is us or them, I choose us. I choose localization. I choose local small businesses. We can make the clothes. We can forge the steel. We can create mini-economies that will serve local communities and revitalize neighborhoods. We can and we must.

I will continue to post resources on how we can embrace localization. Send Path to Well-being your resources and I will get them posted. I have been working at this for one year and I am looking for input. If you are a small business, contact me so we can get your story out. Once this little venture makes some money, we will expand its format. But I need you to help me so we can help each other.

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