I'm Sorry, Mr Chairman, He Meant to Say Crack Pipe

This picture, unlike Bernanke's behavior, never gets old...

How many of these guys grilling Bernanke a) understand what the Fed is doing and b) are inadvertently taking a cut of the "profits?" Income returned to Treasury, anyone? They may slap at Bernanke in public but many of them are reaching out their hand for a piece with the other when no one is looking. Come on now, Bernanke is practically their boss at this point, how else is Congress going to get paid without the asshole running the press at full blast 24 hours a day?

Anyway, Bernanke went before the House Budget Committee and started talking about how he's got everyone all cracked out on his cheap money and therefore definitely can't stop now. As if that totally makes sense.

Via the Christian Science Monitor:

“It is always an issue, as you know, Mr. Chairman, that in the recovery period, you have to pick the right moment to begin removing accommodation and taking away the punch bowl,” said Bernanke.

The punch bowl-party analogy for the Federal Reserve is one that often gets mentioned when a Fed chief appears before Congress. It was coined by William McChesney Martin Jr., who served as the nation’s top central banker for five presidents, from 1951 until 1970.

The job of the Fed is to “take away the punch bowl just as the party gets going,” he famously said, referring to the need to raise interest rates when the economy is performing strongly, so that it does not overheat.

But Representative Ryan used a different saying on Wednesday to illustrate his concern that the Fed already may have done too much in the way of monetary stimulus.

“My fear is ... that the cow’s out of the barn ... that we’re going to catch this when it’s too late,” he said.

JDA naturally prefers to look at this "stimulus" as economic crack since the punch bowl was sucked dry over two years ago. We're way past the booze at this point, we're talking bottom of the barrel, Celebrity Rehab cheap money addiction here, people.

As I said last November when Obama showed he really had no idea what the Fed's job was:

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 DTs can be deadly, you know. Bernanke knows that, surely you didn't think he was some kind of bumbling dumbass, did you?

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:

Anonymous said...

"This picture, unlike Bernanke's behavior, never gets old"

If the shoe fits...

If it walks like a duck and quacks like a duck...

Still waiting for my "Viva Las Vegas" Bernanke, Paulson, Geithner video.

Anonymous said...

"The job of the Fed is to “take away the punch bowl just as the party gets going,” he famously said, referring to the need to raise interest rates when the economy is performing strongly, so that it does not overheat"

I’ve a different take on this old phrase - as I’ve written to my Mortgage Fraud Fight Club buddies:

The Fed doesn’t have to take away the punch bowl altogether – it just needs to stop spiking the punch with so much fucking tequila.