Bernanke Makes Sure Fed Reminds Congress Deficit Bigger Than QE2

Discussion in 'Economics' started by Kassz007, Feb 10, 2011.


    “There is this tremendous fiscal problem looming, and Congress has to do something about it,” said Mark Gertler, a professor of economics at New York University who has co- authored research with Bernanke. “If they have a fixed amount of time, spend it solving” that problem, rather than “grandstanding about the Fed.” The central bank’s plan to buy $600 billion in Treasury securities through June is “a relatively modest policy undertaking” compared with balancing the $3.7 trillion budget, he said.

    A lot of misdirected anger at the Fed should be directed to Congress.
  2. No, it appears Mark Gertler wants to work at the Fed.
  3. olias


    "Love him or hate him, you should listen when Fed chairman Ben Bernanke speaks. He affects your finances regardless if you agree with him.

    While Bernanke sat through a three-hour grilling by the House Budget Committee this week, I pulled up a chair, readied a pot of coffee, and took notes. Here are a few Bernanke remarks that caught my attention. (Bolded text is mine; everything else is Bernanke.)

    Don't call QE2 monetizing the debt: Monetization would involve a permanent increase in the money supply to pay the government's bills through money creation. What we're doing here is a temporary measure, which will be reversed so that at the end of this process the money supply will be normalized, the Fed's balance sheet will be normalized, and there will be no permanent increase either in money outstanding, in the Fed's balance sheet, or in inflation. ..."
  4. bkveen3


    Good notes. Instead of grilling Bernanke congress should focus on balancing the budget. If t-bills weren't crowding out other bond markets Bernanke wouldn't have needed QE2 to begin with.
  5. Bernanke was going to do QE2 no matter what. Read up on his Ketchup Declaration he made a decade ago.

    No stopping the Bernank:

  6. You do realize that's a Motley Fool article, right?
  7. olias


    Pick it apart then
  8. bkveen3


    Does it matter? My statement could easily apply to him or any other random author.
  9. slug


    Yes, Bernanke is a freaking genius. He has my best interest in mind every time he speaks.

  10. olias


    No one is saying that, bro. The Youtube video is totally irrelevant to the discussion. But just to play Devil's advocate, what would you expect Ben to say in that situation? "yes, we are on the brink of a huge collapse in housing prices" I mean really....He's not in a position where he can speak his mind. It is a very tough spot to be in.
    #10     Feb 11, 2011