The 3 Reasons Bernanke Can't Win

Yahoo/AP ^ | 11/12/2010

[EBH]

... monetary policy has suddenly become a turkey. In ordinary times, nobody has much of an opinion on monetary policy -- beyond Fed staffers, wonks and professional bond investors. For heated discussion on the finer points, you have to tune into CNBC or sift through impenetrable papers at academic conferences.

But these days, monetary policy is lighting up Facebook and talk radio. In a recent speech, Sarah Palin showed she's a Mama Grizzly Bear, not a Mama Grizzly Bull. "All this pump priming will come at a serious price," she said, complaining about Federal Reserve Chairman Ben Bernanke's latest plans to lower interest rates and boost the economy ..."The weak dollar -- a direct result of the Fed's decision to dump more dollars onto the market -- is pushing oil prices upward."

Germany's finance minister, Wolfgang Schauble, piled on. "With all due respect, U.S. policy is clueless." When President Obama arrived in India, his host, Prime Minister Manmohan Singh, heartily endorsed Bernanke's latest gambit. "Anything that would stimulate the underlying growth and policies of entrepreneurship in the United States would help the cause of global prosperity."

What's going on? This is monetary policy, not something vital to the future of the world, like, say, who gets kicked off "Dancing with the Stars." Having exhausted its ability to lower short-term interest rates, the Federal Reserve is acting to lower longer-term interest rates by buying assets like Treasury bonds. The central bank is making money available on easier terms by conjuring up and deploying quantities of cash -- which is why they call it quantitative easing. Given some of the actions the Fed has taken in the past two years, this is pretty tame stuff. So why is it raising hackles from Wasilla to Wittenberg?

Three reasons.

[hosepipe]

Bernanke has already won.. he is treated as intelligent..
If he knew what he was doing Obama would not have appointed him..
He is a drone in the hive..

[USSR Didnt Fall]

You need to rephrase Bernauke is winning he is collapsing the dollar thats the problem. Why do you think this administration supported him for another term?

[Mr. Jeeves]

Bernanke knows exactly what he is doing - desperately trying to start whatever inflation he can to stave off the inevitable deflationary depression that will otherwise wipe out a lot of powerful and influential people and institutions who have been caught with way too much debt.

[FromLori]

I don’t know what this writer is talking about bernanke is winning, he gave the banks another gift with QE they park the money and get paid interest, he gave us all a back door tax increase by doing so and by monetizing the debt he allows obama and his minions to keep on spending. He’s smarter then people think he did that all without going through congress but he’s eviler then people think too. He is helping the banks,soros,obama and citizens be damned!

The Biggest Bank Robbery In History? More Quantitative Easing = Backdoor Bailouts For The Big Banks Without Having To Go Through Congress

http://theeconomiccollapseblog.com/archives/the-biggest-bank-robbery-in-history-more-quantitative-easing-backdoor-bailouts-for-the-big-banks-without-having-to-go-through-congress

Soros Bets on U.S. Financial Collapse

http://canadafreepress.com/index.php/article/29682

Alinsky v. China?

http://www.acivilsociety.net/detail/alinsky-v-china

[MulberryDraw]

this is pretty tame stuff.

doubling the monetary base is tame stuff? and now the FED is at it again with QE2.

[Lysandru]

Can we just get to the freakin' inevitable depression without suffering through hyperinflation along the way?

The global economy has to de-tox-- and Western governments need to learn to live within their means.

[Georgia Girl 2]

I agree. We already went through the hyperinflation with Jimmah Carter and I can personally testify it was Hell. Lets just do the Depression and get on with life.

[TopQuark]

"Bernanke has already won.. he is treated as intelligent.."

Judging by what follows in your post, you are the last person to be able to judge his intelligence:

"If he knew what he was doing Obama would not have appointed him.. He is a drone in the hive.. "

[TopQuark]

"that will otherwise wipe out a lot of powerful and influential people and institutions who have been caught with way too much debt."

Another conspiracy theorist...

So, the deflation should not be dealt with at all?

[TopQuark]

Another screaming rant fromLori, who is still to demonstrate any knowledge of economcs but surely knows bad economics when she sees one...:)

It is mindless conspiracy theorists in our midst who are angry at the banks, the Fed, the "fat-cats" CEOs --- just as the socialists want us to be -- who help bring down this country and hand it over to socialists. Go on, conservatives, ignite class warfare, dance to the music ordered by the Marxists.