“Thanks to monetary policy, we could have missed our inflation and unemployment targets even more completely than we already have!”
Posts Tagged ‘Ben Bernanke’
Ben Bernanke has at last gotten off his ass and announced a more or less unlimited QE3.
Time to cheer?
Well, yes and no.
What was missing today is a clear statement that the Fed will allow inflation to rise even after an economic recovery is in place. And that rise in inflation should be linked explicitly to a fall in unemployment: Gorilla would like to see 5% inflation until unemployment falls to 6% or less.
Giving money to all Americans freely might be more efficient than providing it to our very corrupt financial system. The banks have stockpiled huge amounts of cash already, they’re still deleveraging, and the demand that would spark lending remains woefully inadequate.
Free money in everyone’s pocket would greatly assist in getting demand, and therefore GDP growth, back to the trend line. It would also make a huge dent in what should be unacceptably high levels of unemployment.
Bernanke’s history has been to be too late and too conservative. Unlimited QE3 says he understands that the Fed can do a lot more than it has so far.
Gorilla says: “A bit of straight talk would be welcome, but at least they’re putting money where there mouth isn’t!”
With unemployment high and the economy not growing fast enough to match population growth, what in hell is Ben Bernanke waiting for?
The Fed needs to be raising the inflation target now. The Fed needs to be providing money to ordinary Americans, not continuing to encourage corporate America to sit on its hands (or engage in outright criminality, as is clearly the case on Wall Street). The Fed needs to start a jobs program, which could be called QE4U.
Instead, the second worst Fed Chairman in history continues his steady march to the drumbeat of failure and amorality.
Gorilla says: “The sooner this guy is gone, the better off the country will be!”
Has to be Ben Bernanke, the second worst Fed Chairman of all time (Greenspan having retired the title for at least 2 generations)…
The Fed under Bernanke doesn’t care at all about unemployment (or housing bubbles or bank regulation), it is certainly not an independent institution, it only cares about inflation, and therefore is completely amoral.
Millions of lives are being ruined, but 2% inflation is all that matters…
Gorilla says: “Never again should Democrats appoint worthless Republicans to screw things up!”
The Congress is dysfunctional and it’s an election year, so it’s up to the Fed Chairman to do something about the disastrous unemployment situation.
Bernanke frankly would make things easier on everyone by resigning, he’s been wrong so often about everything economic that it’s difficult to see why his continued incompetence should be rewarded.
On the other hand, he could save what’s left of his reputation through a one sentence public statement:
“The Federal Reserve is raising its inflation target to 5%, where it will remain until unemployment drops below 7%.”
Or he could decide at last to be Helicopter Ben for someone other than rich bankers, by issuing a check for $5,000 to every American over age 21, which would begin to narrow the output gap.
Gorilla says: “Long past time for the Fed Chairman to be independent, not pretend to be!”
Now clearly in a tie with Greenspan as the worst ever Fed Chairman, what’s needed from Ben Bernanke is a clear statement, not more mushy garbage:
1) Full support by the Fed for a large-scale stimulus package and jobs program (at least $1 trillion/year for the next 2 years)
2) A raising of the inflation target to 5% until unemployment drops below 7%.
3) Direct cash grant of at least $10,000 to every American household from the US Treasury.
4) Refinancing for all homes currently above water, and refinancing and principal reduction for all those underwater.
Gorilla says: “It’s not all that difficult to lead if you really want to!”
You can call me nothing, or by my given name: Ben Bernanke.
Now certainly tied with Greenspan and Trichet as the worst central bankers of our lifetimes.
They’re intellectually bankrupt, amoral clowns who think that the suffering of millions is worth far less than the suffering of 5% inflation and wealthy bond traders.
Gorilla says: “Let’s hope they’re cursed to lead the needlessly miserable lives they inflict on the rest of us!”
And is neither asked nor says anything at all about unemployment at his first regular press conference.
The Fed is failing its unemployment mandate miserably, but all anyone in the press wants to talk about are the stupid things that are totally unimportant to US economic growth: the deficit, fuel prices, and nonexistent inflation.
Gorilla says: “So, it’s another accountability free dodge for the man currently battling Bill Miller for the silver medal on the podium with Greenspan as the three worst Fed Chairmen in history!”
Japan is an absolute mess, but there’s good news hidden within the bad:
1) Nuclear power is now dead in the US, probably for good, certainly for at least another generation.
2) Oil prices are likely to rise substantially, hopefully not enough to kill off global economic growth, as Japan must replace 30% of its energy production.
3) If global economic growth is killed off by rising oil prices, Ben Bernanke and his fellow clueless central bankers may at last start dropping money from helicopters, and American politicians may at last figure out that 25 million unemployed Americans are a bigger disaster than whatever happens in Japan.
4) Alternative, safer, non-fossil fuels finally will be economically viable.
Gorilla says: “Hoocudanode may herald a brighter future!!!”
Fed Chairman Ben Bernanke: “Resurgent demand in the emerging markets has contributed significantly to the sharp recent run-up in global commodity prices. More generally, the maintenance of undervalued currencies by some countries has contributed to a pattern of global spending that is unbalanced and unsustainable.”
Gorilla translates: “Here we go again!”