All Posts Tagged With: "Ben Bernanke"

Dr. Bernanke’s Fed Funds Patent Tonic with Opium

If you look at the weekly price chart for either gold or silver for the week ending January 27, 2012, you can make out a distinct “J” shape in prices of both metals. Tuesday the prices were suppressed, and then on Wednesday they spiked upward. You can actually pinpoint on the charts the moment the Federal Reserve announced its intent to keep the Federal Funds Rate at nearly zero percent until late 2014.

Low interest rates are supposed to spur economic growth, or at least that is what the textbook for my International Political Economy course said, so what could possibly be wrong with low interest rates?

Of course, low interest rates provide an incentive to borrow money. However, they also form a powerful incentive …


Debate #2, The Morning After

Question of the Night:  Why should we trust either one of you?

Good question.  In typical politico style, I heard both candidates answer in this manner:  “Blah, blah, blah, yak, yak, yak”.

I don’t know how I would have answered the question if I were either McCain or Obama.  There’s nothing in either of their past to suggest they can be trusted, although if I had to choose one as more trustworthy than the other it would be McCain.  Certainly, out of 600+ members of Congress, the events of the past month would suggest there isn’t a trustworthy candidate in the lot.  How sad and cynical is that?

Here’s a thought:  Ben Bernanke for President!…


2008 Election Thoughts

I’m tired of everyone dumping on George Bush.  I’m the first to admit that he has some serious leadership deficiencies, but he is the President and won the job fair and square twice, despite what the Libs think.  As President, he deserves our respect, just like Nixon and Clinton did.  For eight years, I had to  suck it up and respect a man who molested women half his age in his office.  Nearly all the issues Bush has had to deal with are a direct result of Clinton policies and Democratic bungling, particularly as it relates to Fannie Mae and Freddie Mac and “mark to market” accounting standards.  (For more information, see Brian Wesbury’s column in the Wednesday, October 1,  Wall Street Journal.)  For those


The Latest Treasury Bailout and the Law of Unintended Consequences

I have to admit, my thoughts regarding the latest financial debacles waver from one extreme to the other.  My initial instinct is that the markets need to be stabilized, and anything that provides a floor for a stock market in apparent free fall is a good thing.

My next thought is that $700 billion is a huge chunk of change, and ultimately, the taxpayer, that is, you and me, is on the hook.  The current US budget is running a significant deficit, Congress and the current Administration have not proven themselves worthy of handling such a large sum of money.  On the other hand, the Treasury is acquiring these assets at a fire sale price, so as a taxpayer, we may be able to recoup …


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