Posted on 06/24/2013 7:12:12 AM PDT by SeekAndFind
The debacle ignited by the Federal Reserve this week invites this question: What would have happened had Chairman Bernanke refrained from saying anything? He held on Wednesday one of his press conferences, announcing that, as the Associated Press put it, the Fed would likely slow its $85 billion-a-month program later this year and end it next year if the economy continued to strengthen. The stock market collapsed, and the value of the dollar soared — to more than a 1,300th of an ounce of gold at last check — and alarm is spreading.
Well, let it not be said that The New York Sun failed to warn of this kind of chaos. We did this a bit more than two years ago, in an editorial called “The Verbal Dollar.” It quoted a founder of TradeMonster.com, Jon Najarian, as warning Mr. Bernanke’s press conferences would ignite a “giant ramp up in volatility.” He reasoned that traders “react to one word removed from a paragraph in a policy statement” and remarked, “now he’s going to hold a press conference?” It reminded us that there had long been a tradition of silence among central banks, going back at least to the Bank of England.
Our editorial related the story of the question that Lord Keynes put in 1929 to the deputy governor of the Bank of England, Sir Ernst Harvey. He asked the governor whether it was a practice of the bank never to explain what its policy was. Sir Ernst suggested that it was the bank’s practice to “leave our actions to explain our policy.” When Keynes plowed on, Sir Ernst famously explained: “To defend ourselves is somewhat akin to a lady starting to defend her virtue.”
(Excerpt) Read more at nysun.com ...
People get pissed off at the Fed when they explain what they are doing, and when they do not explain what they are doing.
Given the choice, I would rather have them explain it.
People get pissed off at the Fed when they explain what they are doing, and when they do not explain what they are doing.
Given the choice, I would rather have them explain it.
I would rather we get back to Constitutional form of REAL money, instead of renting the paper/ink.
There would be millions of words tortured to explain Bernanke's LACK of cryptic predictions.
"NOTHING! Is it really something? Our panelists will discuss his lack of commentary at length, coming up after the break......"
The Fed should be abolished and bring us real money once again ! Goodbye mandated devaluation and inflation. Of course won’t happen with the current dictatorship !
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