The Good News About Bernanke 37 comments
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It’s a sign of the severity of the financial crisis that Barack Obama is re-nominating Ben Bernanke as Fed chief now, in August, despite the fact that his term doesn’t end for another five months. It’s one of the few sources of potential uncertainty which the White House can address and resolve unambiguously, and it’s good that it’s happening.
Obama is following Bill Clinton’s lead in reappointing a Republican Fed chairman who was appointed initially by a Republican president. In fact, by the time Bernanke’s second term expires, it will have been 28 years since a Democrat, Paul Volcker, held the post. But the good news is that Bernanke isn’t party-political: it’s pretty unthinkable that he would ever pull a stunt like Greenspan testifying before Congress in favor of tax cuts, on the grounds that things get a bit complicated when the government reaches zero debt. (Ha!)
It’s also good news, in its own way, that Bernanke has some opposition in Congress: it’s right and normal that the Fed chief should upset lawmakers. But now that he’s been renominated (and his confirmation is a slam-dunk), maybe those noises about the central bank losing its independence might die down a little.
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Bernanke's reappointment was a foregone conclusion he is implementing the bailout, bubble, Ponzi scheme policies of the administration. Of course no moral hazard - these things never exist in public policy, that concept has actually died even in academia (BB from academia). Maybe Depression 2.0 has been avoided - but 3.0 highly unlikely.
He obeyed and now he is rewarded. He created a large debt (that my kids will pay) to save the corrupt Wall Street and is trying to create a bubble to solve the previous bubble.
They think that people are stupid.
Thanks to Obama and Bernanke the "bill" will come due very soon. Chinese and others were able to recognize criminal fiat-money printing activities by the US government and FED and are actively doing something about it. It is not necessary to be a genius to recognize that the USA will never be capable of paying back its debts.
Well, the mortgage-bubble did not happen over a night but it did blew up. The US$-bubble is about to burst very soon. It is inevitable!
On Aug 25 12:26 PM Fighting Yoda wrote:
> Yes Obama is just Bush Term 3. The election were fought on 2 important
> issues - Iraq war and the economy - the entire Bush team has been
> reappointed and some even promoted- Robert Gates - Defense Secy,
> Timmy G, Ben B. Is this the change we can believe in?
>
> Bernanke's reappointment was a foregone conclusion he is implementing
> the bailout, bubble, Ponzi scheme policies of the administration.
> Of course no moral hazard - these things never exist in public policy,
> that concept has actually died even in academia (BB from academia).
> Maybe Depression 2.0 has been avoided - but 3.0 highly unlikely.
> He always said he was going to send more troops to Afghanistan to
> capture Bin Laden. Obama said he planned on leaving Iraq. Do you
> think we should leave Afghanistan and forget about Osama? Also will
> it hurt our chances of defending America's soil?
As nice as it would be to ensure a democratic, secure Iraq and peaceful Afghanistan, there's a big problem: the U.S. is broke. Simply put, we just don't have the money to mend those nations; we have to borrow funds from abroad to be there now. Indeed, this is the same problem we have with healthcare, Social Security, and any other program the feds want to create: we don't have the money.
Oh, they aren't at war with them? I wonder why?
And the Fed will be the one to administrate it.
Feel better?
On Aug 25 09:35 AM Lilguy wrote:
> It cudda been worse; think "Summers."
>
> It cudda been better; think "Volcker."
>
> The key risk is Big Ben selling out (further) to the Big Banks.
> Certainly we need a consumer protection agency to offset the the
> Fed's bias to the financial industry.
I, can go a long time without eating, the poor kids just won't understand starvation and food riots.
On Aug 25 12:54 PM nova wrote:
> I strongly disagree with almost all posters claiming that "our children"
> will pay for the today deficits."
>
> Thanks to Obama and Bernanke the "bill" will come due very soon.
> Chinese and others were able to recognize criminal fiat-money printing
> activities by the US government and FED and are actively doing something
> about it. It is not necessary to be a genius to recognize that the
> USA will never be capable of paying back its debts.
>
> Well, the mortgage-bubble did not happen over a night but it did
> blew up. The US$-bubble is about to burst very soon. It is inevitable!
We are idiots.
At least the majority.
On Aug 25 12:47 PM Sr. EM wrote:
> This is not good news. Bernanke is a crony of Obama.
>
> He obeyed and now he is rewarded. He created a large debt (that my
> kids will pay) to save the corrupt Wall Street and is trying to create
> a bubble to solve the previous bubble.
>
> They think that people are stupid.
Fiscal responsibility - the F-22 program was cut - just propaganda points. Pentagon budget actaully increased by 4%. Total decrease by 0.4% with F-22 but overall net increase of 4%.
Obama was voted to end the wars quickly - not a ten year plan of withdrawal - even Bush may have done that. It is the exact same foreign and economic policy.
On Aug 25 01:24 PM Smrt1 wrote:
> Did you ever stop to consider that maybe just MAYBE some of Bush's
> appointments weren't terrible. Look at Robert Gates he has called
> for slow return of troops from Iraq and has made broad calls for
> fiscal accountability and oversight in defense spending. He has called
> for the scrapping of stupid programs ie better fighter planes (what,
> because we cant bomb them efficiently enough as it is?) to the expansion
> of programs that will actually help our national defense such as
> intelligence. Who cares what his politics are or who originally appointed
> him, if he does a good job, arent results what matter?
Wake up. Both sides are doing this while keeping us divided over unconstitutional bs.
It is the entire machine, both "sides" (really the same coin) the mega-nationals and the Fed.
On Aug 25 12:26 PM Fighting Yoda wrote:
> Yes Obama is just Bush Term 3. The election were fought on 2 important
> issues - Iraq war and the economy - the entire Bush team has been
> reappointed and some even promoted- Robert Gates - Defense Secy,
> Timmy G, Ben B. Is this the change we can believe in?
>
> Bernanke's reappointment was a foregone conclusion he is implementing
> the bailout, bubble, Ponzi scheme policies of the administration.
> Of course no moral hazard - these things never exist in public policy,
> that concept has actually died even in academia (BB from academia).
> Maybe Depression 2.0 has been avoided - but 3.0 highly unlikely.
Bernake is a bad choice but I'm not sure Summers would be any better. The best solution is to strip the fed of most of its powers. Certaintly the power to institute QE. It's a power that far exceeds its authority and mandate.
I would agree with Moon Kil that the best solution is solution is to strip the fed of most of its powers...That way the world would be a better place...
On Aug 25 08:42 AM John Galt wrote:
> Felix, in case you haven't noticed Barrack Obama has done a lot of
> things like George Bush.
>
> Not only is the war in Iraq not over, he sent a surge to Afganistan!
> The peace people were voting for him because they felt like he would
> step away from the policies of the last 8 years when in fact he juiced
> them up. Imagine the protests we'd see if John Mccain won and sent
> a surge of 20,000 combat troops to Afganistan? The activist ladies
> wearing masks and dressed in all black shirts holding candles would
> still be walking around DC.
>
> How about spending money like a drunken sailor, giving away free
> money, bailout out wallstreet etc?
>
> Obama ran a campaign based on "change", but he's been a lot more
> similar to Bush than anybody would like to admit. Him keeping Bernake
> is just another example of him sticking to a Bush policy.
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