Federal Reserve Chairman Ben Bernanke presents his semi-annual report on monetary policy to the Senate Banking Committee in just a couple of hours. Here are a few suggested questions from David Wessel of the Wall Street Journal.
The big question is, “Why isn’t the Fed doing more to help an economy in which inflation is lower than the Fed wants it to be and unemployment is much higher?”
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[...] The Big Question for Ben Bernanke | The Mess That Greenspan Made [...]
What does a organization devoted to creating fiat money purely to finance or bailout the banking system got to do with something so complex as an economy?
It is breathtakingly absurd watching Bernanke reporting useless mumbo-jumbo pretending his organization has powers over an economy. It does not. What it does is the power to bribe an otherwise functioning economy into an inevitable collapse. It has no power, nor the intelligence to rescue or repair such a distressed economy. Which is why Bernanke must sit in front of Congress and speak utter nonsense. Look, I prefer the Fed send Linsay Lohan to report to
Congress – at least it’s sensationally entertaining.
What do you want Uncle Ben to do? Interest rates remain stuck at or near the zero bound. He pumped money into the financial system through banks instead of individuals. Uncle Ben’s action created scads of zombie banks while consumers stay at home.
Uncle Ben could throw out his mentor’s playbook and raise interest rates. The effect would be to dry out the credit markets, which should have happened in 2003. Too much credit remains in the market.
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