Jared Bernstein seems confused to me

“There is no conceivable stimulus package on the face of this earth that would fully offset the deepest recession since the Great Depression,” Bernstein said in a telephone interview yesterday." Says Mr. Bernstein, the economic adviser to lil Joe.

What does he mean? That there is no knowledge within government that gets us to the next growth phase? After all, if government bureaucrats knew what was causing the Depression, their stimulus would be to simply tell us what they know.

There still seems to be confusion about why we had the oil bubble and the housing bubble. If that confusion rules the thinking of the economic advisers in government, then why do a stimulus at all? I do not remember that Keynesian, or New Keynesian, or Old or whatever works when government officials have no clue. However, if government officials had a clue, or at least some majority of them had a clue then they would say, "Stimulate X,Y, and Z; and the depression reverts to a normal growth economy"

What are government officials claiming? The best I can figure out is they are claiming that the lack of money for Medicare is the cause of the depression, or too much money spent in Iraq, or not enough money spent on oil efficiency. All of these are constraints within government, these are all government programs now that ACES has passed. If the current government policy is unable to fix what the current government believes is the problem, then we are in a depression from government failure, nothing more.

QM Theory tells us that we have a Treasury bubble becuse government is not meeting economies of scale for their major program(s). Hence, government goods have to be devalued or government has to get more efficient. Something is wrong with the manner in which the government sector is working. Hence, Bernstein is telling us that government is too incompetent to exist in a modern industrial society. If that is the case, then say that, Mr. Bernstein. Do not tell us that something is wrong with the private sector and cannot be fixed by government, because that is not true, government has the bubble. The economy expects Mr. Bernstein to fix what ails government, or at least state the failure of government.