Senate Approves Bernanke as Fed Chairman (Breaking!)

Fox News ^ | 1/31/05

[areafiftyone]

WASHINGTON — The Senate on Tuesday approved the nomination of Ben Bernanke to be the next chairman of the Federal Reserve, the most influential economic policy job in the world.

Bernanke, 52, was cleared on a voice vote after a short debate in the chamber amid strong bipartisan support.

He succeeds Alan Greenspan, 79, who retires Tuesday after 18 1/2 years, making him the second-longest serving chairman at the central bank.

"We believe that Dr. Bernanke will serve this country well at the helm of the Federal Reserve," said Sen. Richard Shelby, R-Ala., in remarks on the Senate floor before the vote.

Sen. Paul Sarbanes, D-Md., observed: "There's no question about Dr. Bernanke's qualifications for the position ... He commands great respect from his peers in the profession and I think great respect from all who have come in contact with him."

Sen. Jim Bunning, R-Ky., was the only senator requesting to be recorded as voting against the nomination. Bunning cited concerns that Bernanke would be too much in Greenspan's mold. "Sadly, I have not seen very much evidence of him being independent," Bunning said.

[SolidSupplySide]

Larry Kudlow likes the pick and that's good enough for me.

What is Kudlow snorting these days? Kudlow is supposed to be a supply sider. Bernanke is certainly no supply sider.

The best that can be said about Bernanke is that he's a monetarist and not a dyed in the wool Keynesian.

[Southack]

"What does that mean? I'm all in favor of monetary policy that creates a stable dollar. Where do I fit in here?"

A stable currency is a fiat illusion that must be created by ever more onerous government policies.

That's not Bernanke. Bernanke wants the free market to fairly value the Dollar...something that is only happening on a limited basis today (due to government interventions by India, China, Japan, and Europe to hoard Dollars).

The free market, if left unfettered, will adjust a currency down if you borrow too much or import too much.

A stable currency when you import too much, on the other hand, amounts to little more than a government subsidy of your foreign import purchases.

Are you certain that's what you favor?

[Southack]

42 for u

[SolidSupplySide]

All I can say is that your views on economics are "unique".

[rhombus]

Bernanke believes in a fair-valued U.S. Dollar (rather than the currently propped-up Dollar)...one of those rare positions on which both labor (i.e. unions) and management (i.e. companies) agree. A lower Dollar means fewer imports, more exports.

What actions can he take to achieve those ends?

[Southack]

"What actions can he take to achieve those ends?"

The Fed has, so far under President Bush, stopped the idiotic policy of aiding Europe and Asia by buying Dollars on the open Market to help prop up the Dollar. By ceasing the purchase of Dollars, all of the pressure to prop up our currency was placed onto export nations (where it should be placed).

Bernanke should follow up on this process by keeping steady or lowering U.S. interest rates, which will put additional downward pressure on the Dollar.

As the Dollar goes low enough, imports will decline and exports will rise.

Pretty basic economics.

Keep in mind that for an internal economy like the U.S., that the "value" of our currency on foreign markets matters less to us than to export nations. They need us to buy their goods more than we need to buy from them.

[SolidSupplySide]

As the Dollar goes low enough, imports will decline and exports will rise.

A nice Keynesian urban legend! Experience shows it is not true. But yet it remains. Reminds me of the claim that budget deficits lead to high interest rates. No they don't.

[rhombus]

Bernanke should follow up on this process by keeping steady or lowering U.S. interest rates, which will put additional downward pressure on the Dollar.

Many have predicted interest rate hiikes would level after today's.

[demkicker]

Sen. Paul Sarbanes, D-Md., observed: "There's no question about Dr. Bernanke's qualifications for the position ... He commands great respect from his peers in the profession and I think great respect from all who have come in contact with him."

Since when did being qualified get support from any democrat? Oh, yeah, I forgot, he won't have anything to do with abortion.

[EGPWS]

The head Fed probably has more power than any single Supreme Court justice, yet this guy is approved by a voice vote.

In reality yes, in liberal fantasy land, no.

[EGPWS]

Oh, yeah, I forgot, he won't have anything to do with abortion.

Well, he could factor in the number of abortions "achieved" in determining his mindset as to what is best for the economic prosperity of our country.

He won't but I can envision a liberal fanatic degreed from the likes of Berkley doing such.

[Southack]

"A nice Keynesian urban legend! Experience shows it is not true. But yet it remains."

It's not a legend. It is true (hence the reason why it "remains").

It simply isn't linear or absolute. There is a lag between a currency declining and imports (if their prices don't likewise fall) following suit.

Because it isn't linear, absolute, and instantaneous, the lesser informed economists can, if they are biased, claim that there is no cause and effect between price (which is what we're really talking about with currency depreciation) and demand.

Adam Smith proved otherwise 2 centuries ago.

[grey_whiskers]

Bernake rubs me the right way--most notably his reputation for plain speaking rather than the crytic gobbledegook of Greenspan.

I like his facial adornment, too (see my screen name...)

Cheers!

[grey_whiskers]

"crytic gobbledegook"

speaking of which, that should have been cryptic.

(Past my bedtime again!)

cheers!

[M-cubed]

If ya like inflation..You'll like "Helicopter Ben"

[DoNotDivide]

Of all the world's significant players, which the Fed Chair ranks in the top 5, I know virtually nothing about this guy. Other than he passed through on a voice vote.

[M-cubed]

It is interesting that the "private" nature of the Federal Reserve is not well-known.<<<

Isn't it though!!..especially after Kennedy tried to put us back in charge of our money system with EO 11110 ...http://www.fourwinds10.com/news/05-government/A-banking-irs/2003/05A-12-25-02-gold-and-economic-freedom.html ...The founding Fathers understood how fiat money robs the people...Hence ART1...SEC 8

[TheBrotherhood]

>As the Dollar goes low enough, imports will decline and exports will rise.

Which is true and good for us. I hope it will continue its slide indefinitely. If it does, there is another plus coming: conversion of petrodollars into petroeuros. It's an idea whose time has come. America is sick and tired of seeing its standard of living decline due to payments of oil in dollars.