October 9, 2015

IT IS THE VERY ESSENCE OF IDEOLOGY...:

Ben Bernanke Is Fed Up (Chad Stone, 10/09/15, US News)

Bernanke says he "lost patience with Republicans' susceptibility to the know-nothing-ism of the far right." Here's part of his indictment:

They saw inflation where it did not exist and, when the official data did not bear out their predictions, invoked conspiracy theories. They denied that monetary or fiscal policy could support job growth, while still working to direct federal spending to their own districts. They advocated discredited monetary systems, like the gold standard.

Bernanke's right; these views aren't conservative - they're kooky.

...that reality can not trump your theory.  So the permanent absence of any inflation, nevermind of the hyperinflation their doctrine requires can have no impact on the Right.

But, it's important to note that Mr. Bernanke is also indicting himself here.  After all, to prove his inflation-hawk bona fides he hiked rates in '06/'07 into the teeth of the reality that there was no inflation.  The historically high real interest rates--and their accidental exposure of the risk hidden in derivatives--eventually triggered the credit crisis. 



Posted by at October 9, 2015 2:10 PM
  

blog comments powered by Disqus
« ABEL IS WINNING: | Main | IT'S NOTHING TWO TERMS AS A GOVERNOR WOULDN'T FIX: »