[quote=Casca]Bernanke isn’t stupid. He’s obviously trying to land this turkey in the river, instead of the middle of Wall St. A good man in a bad cause.
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Really? Have you read his 2002 speech? He is either grossly misguided (ie, stupid, incompetent) or downright malevolent (ie, evil). A good man would either not have taken the job knowing full well the turkey can’t be landed in the river, or would have more honest candor about what truly needs to be done. Since neither are the case, he’s either an imbecile with delusions of grandeur, or he’s on the take and feeding some greedy agenda.
Today he said that inflation will not be a concern because when the economy picks up and inflation pressures return, he’ll be able to just raise interest rates and soak up all the extra money that’s currently being printed. This statement is so glaringly self contradictory he is either too dumb to recognize how illogical it is, or he’s trying to do a snow job. If the economy recovers before inflation takes off (that is, if we don’t find ourselves in the more likely stagflation situation), raising the interest rates will promptly derail any recovery, pummel ARM-holding home owners, and devastate the federal treasury, which you may have noticed, is borrowing by the trillions. If inflation takes off while the government is still trying to stimulate the economy, especially if Ben is making good on his 2002 promise to buy treasuries with newly printed dollars, he’ll be caught between trying to print enough to soak up all the treasuries being dumped by our foreign creditors and trying to soak up what he’s printed. Simply, it’s impossible. When inflation hits, we’ll be too far down the road for him to be able to stop it. He’s not a good man if he is trying to pass off something other than that truth.
