JDA Does Time

Tuesday, January 26, 2010 , , 1 Comments

I will totally take "right-leaning hawk" any day.


Now that Bernanke has gotten us past the crisis, inflation hawks and doves alike are trashing him for unbalancing the Fed's "dual mandate" to stabilize prices and maximize employment. The mostly right-leaning hawks rail about Helicopter Ben, Zimbabwe Ben and the Villain of the Year, whose cheap printed money is driving us to hyperinflation. It's true that Bernanke drove interest rates down to zero and tripled the Fed's balance sheet to avert a depression; he has also bought more than $1 trillion worth of mortgage-backed securities to lower mortgage rates, boost housing prices and pull us out of recession. Now that the recession seems to be over, hawks are badgering him to start tightening the money supply to avoid inflation and an overheated economy. Bernanke's response is simple: What inflation? There's little evidence in the data, and even a cursory review of the morning papers suggests that the economy is still underheated. Bernanke repeatedly stressed that the big problem today is high unemployment, that places like Dillon are suffering, that persistent joblessness can create ripple effects that damage families, communities and the nation for generations.

Go, ZB, go!

Update: it has been brought to my attention by WC Varones that Skeptical CPA is the one who originated Zimbabwe Ben as far as we are concerned so let us give credit where credit is due. Thanks, Pop!

Update again: WCV was kind enough to give JDA a good rub for a job well done and pointed out that this may be the first time the name Zimbabwe Ben came to mainstream media. How does @ZimbabweBen feel about that?

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.


Anonymous said...

We just finished our ALM monthly meeting. We have a consultant that joins us once every 6 months. Guess what? We heard from the consultant what each of us already knew - we would benefit greatly if the Fed and Treasury would stop manipulating the price of credit and allow rates to rise to levels considered to be more normal from an historic viewpoint. Shocking, huh?

"I've been testifying since 1962," observes Allan Meltzer, a Carnegie Mellon economist and expert on the U.S. central bank. "I've never seen so much anger directed at the Fed."

The pressure is building. BB may come to be recongnized as the poster boy for "wrong place, wrong time".