There was considerable buzz yesterday as Fed chairman Ben Bernanke made the rounds of Capitol Hill.
According to Senate Majority Leader Harry Reid, Helicopter Ben promised he'd continue his easy money policy as a quid pro quo for being reappointed to his current job.
As retiring Kentucky Republican Senator Jim Bunning contended this morning on CNBC, Bernanke is engaging in unusual and dangerous behavior.
What are we to make of a Fed chairman publicly prostrating himself for Senate confirmation votes? Where's the outrage from the rest of the Fed now? They certainly rallied to protest the House bill to audit the Fed. They were all up in arms about the sacred independence of the Fed.
How can it possibly remain 'independent' when its chairman grovels before Congress, promising easier monetary policy than the already-zero interest rates?
Worse, what signal does this send to the rest of the investing world? The chairman of the central bank for the world's reserve currency pleading with those who would reappoint him that he'll make monetary policy sufficiently lax to please them?
This way would seem to lie serious danger for the US dollar and very dire long term economic consequences for our country.
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