From Friday night’s Fox News All-Stars.
On the unemployment rate climbing to 9.1 percent in May and what this means for the big picture:
The socially lethal part of this is the fact that half of this historically high unemployment is the chronically unemployed — people who haven’t had a job… for more than six months.
Now this is fairly new in America. That means that 4.5 percent of Americans are chronically unemployed.
This is what Europe experiences. Because it has the chronically unemployed, it got used to people living on the dole who don’t have hope. That is coming here.
The worst part this is happening when a time when all of our bullets has been shot… at a time when we have tried everything. We have had $5 trillion worth of deficit spending in three years — a world record — and… already had the Fed try two rounds of printing money called quantitative expansion…. Now we are coming to the end of the second one. We really can’t do a third. There is only so much that you can do without having huge inflation. We’re seeing a part of this [potential inflation] in the rise of the price of oil and other commodities as a result of the cheapening of the dollar as you print money.
So we have tried a fiscal stimulus, $5 trillion of debt. We have tried the monetary stimulus. And we’re still dead in the water. Interest rates are essentially at zero. The point is there is nothing left. That is why it’s scary, and that’s why people are looking at us as teetering on the cliff, because if you go backwards, what exactly can you do?