The Filthy Fed Slaps Back
Financial Armageddon's Michael Panzner got in a few Fed digs in today's My Six Cents on Bernanke and the Fed (are those inflation-adjusted?) and I'm not simply reposting here because he was kind enough to give yours truly top billing in his post. OK, maybe a little. Whatever. As many of you already know, MP is not only an opinion I admire but a friend and since none of the financial blogosphere seems to be able to resist giving Bernanke's confirmation our full attention, his thoughts are even more relevant than usual. Go read it. (As for me, he's referring to my interpretation of his thoughts from a recent interview, the meat of which may be found via Going Concern here and here. Yeah yeah yeah, it's an accounting tabloid but I swear I won't trick you with debits and credits once you drag your sorry ass over there, just go):
When asked to take a guess as to when the Fed would finally raise interest rates, Panzner gave an interesting answer. “In my view, the Fed is no longer in control – of the economy or its destiny. For the most part, market and other forces, not the FOMC, will determine what happens to interest rates in future.” So I guess it doesn’t matter when they’ll raise rates, markets are no longer listening. Or are they?
Got to give MP style points for stealing the Fed's own "in my view". Oh so much win.
Meanwhile, we've got some other "respected" opinions weighing in and fuck is it ugly.
Wait a minute, what's this? Dallas Fed President Richard Fisher coming to rescue Ben Bernanke in the WSJ?
Teddy Roosevelt once remarked of a financial crisis: "When people have lost their money, they strike out unthinkingly, like a wounded snake, at whoever is most prominent in the line of vision." Late last week, we saw the Senate strike out at Federal Reserve Chairman Ben Bernanke. His nomination for a second term was the first to come into Washington's line of vision in the immediate aftermath of Republican Scott Brown's win in the Massachusetts senatorial election.
Really?! Really?!?! Here I thought Richard Fisher was a pretty clever guy - surely he knows that that entire statement is total bullshit.
Fisher's op-ed, "Congress Is Politicizing the Fed The assault on Ben Bernanke is part of a larger trend that is undermining the central bank's independence", cannot be construed as anything but a desperate stab in the dark at saving their own asses, and frankly comes off as far more contrived a performance than JDA is used to seeing in her 2nd favorite Federal Reserve President. Don't make me start cozying up to Janet Yellen some more, dude, I thought we were cool.
But hold the fucking phone, is this the Fed punching back? Chill out, Fisher, you're getting me worked into a lather over here:
The burden of making the tough decisions needed to make our country's economy sound again falls on the sole body responsible for taxing and spending our money: Congress. For too long, Congress, under both Republican and Democratic leadership, has chosen the easy path of kicking the fiscal can down the road. Our elected representatives must now find the resolve to set aside partisan bickering and get us out of this frightful financial predicament.
The impulse to use Mr. Bernanke as a political punching bag raises the specter that, instead of doing the right thing, Congress may seek to pressure the Fed to print its way out of this crisis. We know from history that when fiscal authorities attempt to monetize their debts, the result is inevitably inflation.
Even before the Massachusetts election, there were several bipartisan proposals before Congress that recommended putting the Federal Reserve under congressional authority. These acts sound agreeable at first blush, but, as Winston Churchill once said, "In finance, everything that is agreeable is unsound."
Did anyone else feel that? My cheek is throbbing just thinking about the bitchslap we all got for coming down on poor, helpless Dr Ben S Bernanke who is merely a pawn in a game of Regulatory Rumble in which the biggest bitch gets all the shit while the real villains get away with murder. Yes, that means you, Alan Greenspan.
I'm not going on record as saying the Fed slaps back but, uh, I'd watch that backhand if I were any of you out there bitching out Bernanke. Just sayin.
I'm likely going to get a lot of shit for saying this from the financial blogging contingent but I get what Fisher is trying to do. He could have done it a little more subtly but I guess that's just how Texas boys get down, making it real obvious just in case we missed it. Still, pointing out the H.4.1 is a little too obvious and personally I'd liked to have see Fisher put in a little more show and a little less duh. That's just me.
Come on, if you're going to slap back at least do it like you mean it, RF. Yawn. A girl's really going to need to get another hobby if these bastards keep this up...