Charles Payne

Knowledge may give weight, but accomplishments give luster, and many more people see than weigh.
Earl of Chesterfield

When President Bush declared "Mission Accomplished" he was just a little early and in the end the mission was simply to leave. The exit was out of his hands, but the question remains-what was the mission? I still can't believe they didn't use the Powell Doctrine of an overwhelming force cleaning out all the nooks while keeping on key personnel of the Iraqi military. There's no doubt that whatever the mission was at the beginning, it became something else later.

When President Obama bragged about pulling the economy out of the ditch, I scratched my head and wondered if he would follow up that line of thinking admitting the economy came out of one ditch and slipped into another. The exodus from the jobs market and massive government spending to spike the last GDP into the November elections painted a false narrative. These days we hear nothing about jobs, only about those petulant children of the Republican Party that can't grasp common sense. Certainly when it comes to fixing the economy, the mission is far from accomplished.

This brings us to Federal Reserve chairman Ben Bernanke.

What the hell is the goal of all this money printing? Last September the Fed added $40.0 billion in monthly buying of mortgage backed securities to his bag of tricks. Then he bumped it up with an additional $45.0 billion of Treasury securities. The numbers are jaw-dropping, surely this could be defined as shock and awe, but the results have only been awful. Officially the Fed has a mandate that covers employment and inflation, but there is no mistake Bernanke is trying to spark a revival in the housing market. On all three fronts Bernanke has the kind of false facade that makes for great backdrops for declaring victory.

At this point, Bernanke & Co may feel they have no choice other than to go for the luster, even if it means moving farther down this insane road, believing it is better than admitting they've tried, they've acquired knowledge, and they've failed.

Jobs = The unemployment rate is down as people sit out this dance. More than 9 million quit the work force.

Inflation = non-existent using government cautions, but that's backfiring as deflation is now a major worry.
Housing = Prices rebounding and inventory scarce, but ownership is plunging as investors gobble up supply.

Great Question (and song) Billy Preston


Charles Payne

Charles V. Payne is a regular contributor to the Fox Business and Fox News Networks. He is also the Chief Executive Officer and Principle Analyst of Wall Street Strategies, Inc. (WSSI), founded in 1991 which provides subscription analytical services to both individual and institutional investors.