OMG! Obama Reveals He Doesn't Know What the Fed's Job Is, Supports Bernanke Anyway
Of course our fearless leader endorses Ben Bernanke's handywork, it's how Obama keeps the lights on in the Lincoln Bedroom when company is in town.
The sad part is that he doesn't even have a remedial understanding of the Fed's mandate.
Speaking at a news conference in New Delhi with Indian Prime Minister Manmohan Singh, Obama stressed that the Fed acts independently from his administration but left little doubt that he has Chairman Ben S. Bernanke's back.
"The Fed's mandate, my mandate, is to grow our economy. And that's not just good for the United States, that's good for the world as a whole," Obama said Monday. "The worst thing that could happen to the world economy . . . is if we end up being stuck with no growth or very limited growth. And I think that's the Fed's concern, and that's my concern as well."
OK, let's start with how horribly Obama grasps the Fed's job. "Growing the economy" is actually NOT their job and nowhere in their alleged dual mandate of price stability and maximum employment does it say growing the economy is a task they are directly charged with. Granted, if the population is spitting out more little worker bees than there are jobs to go around perhaps one could sort of say that it would then be in the Fed's duty to somehow grow the economy BUT unfortunately the only way they know how to grow the economy (read: printing money, however you define it in particular) would violate that first mandate. Price stability is put there to force them to restrain themselves though we know how well that has worked out.
And let's not get into the actual worst thing which could happen to the economy: a world financial system addicted to Bernanke's cheap easy money and entirely unable to function without it. At some point the crackhead is going to have to put down the crackpipe or die. That's it. There's all rotten ruin at the end of it, whether we accept that now or later is up to Bernanke and Co.
The Fed's concern is not no or minimal growth but negative growth (or, as we've come to know it, the Deflation Boogeyman). They couldn't care less whether the economy grows as long as it doesn't grow in reverse, erasing their near century of hard work inflating the currency. They've especially worked hard in the last two years to send stocks up despite reason and will not stop until they are absolutely sure that inflation is running hot enough to stave off that dreaded deflation monster. Even if that means taking the dollar out in the process.
It haunts Bernanke in his sleep. Obviously Obama is unaffected and, frankly, misinformed.
Can someone please sit him down and give him a primer? Or perhaps subscribe email@example.com to Jr Deputy Accountant at a minimum? Good lookin' out, kids.