Tuesday, December 07, 2010

Surprised by Bernanke

I don't think I did a good job of describing my surprise at what Fed chairman Ben Bernanke said on 60 Minutes in my previous post, so here goes another try.

I was seriously shocked by his comments. I had always had an image of the Fed chairman being this fiscal Solomon, stroking his beard and tut-tutting at the economic novices in Congress and the Administration, regardless of the era. Back in the day, Paul Volker would utter words of warning about overspending against Republican and Democrat alike. Instead, Ben Bernanke turns out to be a true believer in the power of the state to manage the economy.

Instead of claiming that America's chickens are coming home to roost, as a certain racist, lunatic mentor of Barack Obama might say, he showed that he's one with the crew that thinks that our problems can be solved with government spending and Fed-set interest rates. Ben could have gone before Congress and refused to print the money or offered to print the money with strings attached. Instead, he didn't offer a peep of warning or advice to a gang whose new regulations* have made the business environment uncertain for all.

Ben Bernanke has reduced the Fed to the boiler room crew on a steamship. They feed the government, but have no control over the direction taken. I'm totally blown away by his (utter capitulation to or complete belief in) the government.


Shovel more money into the government! Captain Obama and First Mate Pelosi know what they're doing!

* - Don't think that the thousands of pages of laws that this group has passed is the end of it. Tens of thousands of pages of regulations interpreting these laws will be the real result. Want to hire someone? You have no idea at all what that will cost you.

3 comments:

Houston said...

You sum it up nicely.

With the little Easter Egg hidden in the Health Care Reform Bill that forces companies to file a 1099 whenever they have exceeded $600 in spending with a company, small businesses will be terrified to try to start up.

God knows I am.

I want to get out of my line of work and start doing some stuff on my own but the thought of a federal audit hanging over my head keeps me in check.

I am also furious about the "Deal" cut between R's and D's. Fine, don't raise taxes, but for GOD'S SAKE please don't SPEND MORE!!!!

I am floored. Obama is worried about the $700 billion they won't get in taxes from the top 1% yet his solution to this deal is MORE SPENDING?

I call bullshit.

I know I am a nut, but I just sit with my mouth hanging open because there is NO WAY these people seriously believe these economic policies can work. NONE. There HAS to be another reason.

It's going to be a rough ride to the end of this.

Dean said...

Though the QE II is a diesel plant, I still like the shipboard coal-shoveling metaphor.

Which reminds me of a story...

When Winston Churchill was Lord of the Admiralty, he wanted to modernize the fleet by switching over to oil-fired boilers vs. coal-fired. His opponents decried this potential move, claiming it would go against the traditions of the Royal Navy.

To which Churchill responded: "The only traditions of which the Royal Navy that I am familiar are rum, sodomy and the lash".

Game over.

Hal (GT) said...

Do you really think he has capitulated to the government? I'm not certain that's it so much as he's doing that. I do think that he might be falling in line with the creation of another government few will be happy with.