Blam! "No Net Impact to the Taxpayer" Huh, Bernanke?!
Ben Bernanke would like you to believe that the Fed's massive balance sheet has no net impact on the taxpayer; this while he's telling you about the $46 billion in "profit" the Fed made this year. What he forgets to tell you (conveniently enough) is that indirect impact to the taxpayer (employers pay taxes, no?) is great. Come on, ZB, you're slipping. First of all, it's ironic to even call it a "balance sheet" (balance sheets balance and FUCK the liabilities are massive, not even governments can run their own accounting playbook like the Fed does) and secondly, this man is obviously out of his mind.
Employers are getting hit with a massive tax hike at a time when they can least afford it.
Companies in at least 35 states will have to fork over more in unemployment insurance taxes this year, according to the National Association of State Workforce Agencies.
The median increase will be 27.5%. And employers in places such as Hawaii and Florida could see levies skyrocket more than ten-fold.
Many of these hikes happened automatically as prolonged joblessness triggered state laws governing their unemployment insurance systems. But at least seven states voted to raise their taxable wage bases, the level of income subject to unemployment tax. And another 10 are looking at upping the wage bases or tax rates.
No net impact, eh?
Beyond that, even Janet Yellen's crazy ass isn't whacked out enough to say anything more than 2% inflation a year is ideal (she knows I'd come personally slap her myself if she did and remember the disclaimer if you have no sense of humor, SF Fed legal department *cough*) however these are not ideal times. Surely even Janet's silly Keynesian ass gets that we are going to have to inflate our way out of this. Maybe that's why she's grown on me lately; she has no vote so maybe let her crackpot ideas of printing our way out of it take hold.
OK, maybe I'm only saying that because I want to see the Fed implode years ahead of schedule.
Anyway. I'm shocked Bernanke's macro ass can't see it either. The net impact on the taxpayer is not restricted to the performance of crap assets the Fed holds on their behalf. How obvious does this need to be?
Let's run through it one more time: not only does the Fed (and banks drunk on their cheap easy money) have to keep buying Treasurys, someone's going to have to refinance the interest on all of that debt. Well shit, we're already printing money, what else is there?
Whatever it takes, right?