Hard Money Populism and Playing Nice with the Fed from Bob McTeer




Alright seriously, Bob, I was totally with you until the last paragraph. Since you have some experience with the Fedbashing Gonzalez who came before yours truly (holy crap, there's more than one of us?) maybe you'd be willing to have a little sit down with this Gonzalez and explain to her why in the hell you think Bernanke has done an excellent job? I am sure you have your reasons, none of which could possibly be based on some weird loyalty that you still feel for the Fed even though your FRB .org has long been retired. I get it. Hello, of course I get it. It's our teams, that's just how we've got to roll.

Let's fast forward to 40 years from now. The financial crisis is little more than a "back in 2008..." story told to children sitting on laps and maybe I've renewed my .com 20 times since but at 69, I doubt I'll be able to keep up the sort of productivity I enjoy now. If WC Varones isn't in a wheelchair raising hell in the nursing home by then, I'm sure I'd jump (or hobble my ass over towards his general direction slowly) in a heartbeat if he mentioned an End the Fed rally. Hell, I'd even push his ass down Market St, portable oxygen at all. It's the loyalty that comes from pouring your heart and soul into something and damnit, I've poured my heart and soul into loathing this institution which has massacred the dollar and kept the economic yoke tight against America's sunburned and beaten back. So there. I get you, dude. We're on opposing sides but the fundamental drive is still the same.

Seriously. Give it up. Tell us how you really feel.

Anyway. Bob did Hard Money Populism over at his blog and I have to say, if it weren't for that stupid fucking Bernanke jerk off at the end I'd hang up my Fedbashing flag long enough to stroke Dallas Fed's ex President for a job well done. Who says we can't play nice with each other? Well Bob does. Kind of.

When I became President of the Dallas Fed in early 1991, our populist nemesis was another Texas Congressman, Henry B. Gonzalez, Chairman of the House Banking Committee. What is it about Texas? Like Patman, Mr. Gonzalez came at us from the left. Money was always too tight to suit him. Mr. Gonzales had many claims to fame, one of which was that he once punched a guy during a difference of opinion. Turned out he was a boxer in his younger days.

It was with some trepidation that I found myself sitting beside him during a banquet in his home town of San Antonio and was the person chosen to introduce him. He was the keynote speaker. As it turned out, he and I hit it off at dinner and peace broke out between him and the Fed, at least for that evening.

I didn’t use [sic] to think of Congressman Ron Paul—guess where he’s from—as a populist. After all, he came at us from the right, not the left. I thought of him as a Libertarian who was steeped in Austrian economics. He came by for a visit at some point during the early 1990s and was surprised that a Fed guy—that’s me—was somewhat familiar with Austrian economics, even though I grew up on Friedman rather than Hayek.

And why think of Ron Paul as a populist? Look at his fan base, it's comprised of nerds and hipster weirdos like myself who believe in off-the-wall things like sound money and a banking system that actually works for the people and not against them. You know, wacky shit like the Constitution OMG what a bunch of nutjobs.

I'm not surprised at what Fed guys know and I'm sure Dr Paul was not either. It's ignorant to assume that he was blown away by a Fedhead feigning interest in Austrian economics. Doesn't McTeer know our side is smart enough to have not one but several copies of the enemy's playbook? It's really the only way to go into battle, duh.

For the record, Jr Deputy Accountant is another Gonzalez known for punching people but that's an entirely different story and has nothing to do with the Fed or sound money so I'll leave that for another day.

He continues:

Mr. Paul and I visited again when I was Chancellor of the Texas A&M University System in 2005 or 2006. He came to address a Young Republican’s Club and the attendance was embarrassingly small. Nevertheless, he was a good sport and gave them the “whole load” as if there was standing room only. He is quite a gentleman. Unfortunately, that makes his anti-Fed views appear less threatening even though the title of his latest book is End the Fed.

I guess “hard money populist” is a term that fits Ron Paul, even though, as a practical matter, I’d rather go with Wayne Angell’s version.

The rhetoric and the committee vote on the confirmation of Chairman Bernanke has been very distressing for me in many ways, not the least of which is that several of my friends seem to have turned anti-Fed in order to burnish their new-found populist personas. I just don’t see how they can honestly get around the fact that the Chairman has done an outstanding job over the past couple of years.

That's exactly it. The Fed feels threatened - as it well should - by critics. Trust me, I know they're scared to death of me. What for? I'm harmless, squishy (hello, you people saw the email I sent out for the holidays...) and despite the ridiculous tattoos, fairly intelligent. What's there to be afraid of?

When one is up to no good, one will feel guilty just breathing. I imagine the Fed's fear of critics comes from this same concept; if they didn't have a reason to feel threatened (knowing full well what they've done), they wouldn't be so bothered by obnoxious little brats like myself. In fact, they might find it entertaining. But no. Threats. BE CAREFUL don't get too close I might bite OMG DANGER!!

I speak of these Fed scaredy cats in a general sense, of course. There are always exceptions to the rule. But the sort of brilliance that might lead someone from the other side to tentatively reach across and try to hear what I'm saying instead of running scared from it is rare and that's not exclusive to the Fed. Either you get it or you don't and unfortunately, the majority of Fed payroll is populated by the "don't" category.

For the record, I have found my dealings across enemy lines to be incredibly insightful in ways that Ron Paul and all his Fedbashing awesomeness could not offer. So what if I want to pull the plug on the Fed? As with the PCAOB, I invite any cheerleader to convince me I'm wrong. Go on. Give me one good reason why I've got my head planted directly up my ass and I'll be sure to make a doctor's appointment to have it extracted immediately. Defend your sacred institution if it's so damn important. That means you too, Bob. Don't just throw around vague statements and hope someone buys it - that's not how the Fedbashing contingent gets down and we expect better out of the enemy. If for nothing else but entertainment's sake. Come on, this is a miserable hobby, can you please at least make it interesting for me?

And please for the love of God stop rubbing Bernanke's balls. It's making me sick. As I said yesterday, Congress isn't mad at Bernanke, they're mad at the Fed and unfortunately for Zimbabwe Ben that means he's the one who has to take the heat.

Shame that. There are so many more Fed bastards to get pissed off at. If only Congress could extract their heads long enough to realize as much.

The battle rages on. See you on the frontlines you Fed fuckers!
xoxo,
JDA

Update: Cl5v5r informs JDA that she missed one hell of an innuendo in McTeer's statement that Ron Paul gave "the whole load". I believe I already discussed this in "How to be a Bad, Bad Little Accounting Blogger" and if not, well, perhaps he knows where to find my vacation photos. Don't look at me, it's those Fed bastards that are dirty, or have we forgotten endogenous firm entry? Purrrrrr, anyone want to show me how that printing press works?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

2 comments:

W.C. Varones said...

Hey McTeer,

I see you've got David Walker coming to speak to your NCPA.

Why don't you ask him how he feels about Bernanke printing money to buy Treasuries to facilitate trillion-dollar deficits?

WCV,

Doubt that discussion is planned. Think more like "soooo how about the Fed's exceptional crisis response! WE RULE!!!"