Mr. Bernanke, with all due respect: Shut the hell up.
February 24, 2009 · Posted in Monetary Economics
This is an excerpt of Bernanke’s most recent statement from February 18th 2009:
In the United States, the Federal Reserve has done, and will continue to do, everything possible within the limits of its authority to assist in restoring our nation to financial stability and economic prosperity as quickly as possible.
Since October 2007 the public and the politicians have realized that the US economy is in a tailspin. The effects of the long term recession that had already been visible for much longer to those who had been following True GDP had finally reached even the most clueless people amongst us.
Since then the Dow Jones has dropped by about 50%. GDP has been declining constantly. Unemployment has risen constantly.
Below please find a list of part of the countless pledges and shallow platitutes that FED Chairman Ben Bernanke has uttered during this economic decline.
Bernanke, addressing business leaders in Austin, Texas, said the Fed will continue to use the tools it has been given to fight the financial crisis. (…) “Although conventional interest rate policy is constrained … the second arrow in the Federal Reserve’s quiver — the provision of liquidity — remains effective,” he said.
Federal Reserve chief Ben Bernanke reaffirmed his willingness to use all tools available to aid the economy, according to Sen. Chris Dodd, chairman of the Senate Banking Committee.
A US senator said Tuesday that Federal Reserve chairman Ben Bernanke pledged to use “all tools available” to avert a worsening of the housing and credit problems roiling financial markets.
Fed’s Bernanke: All tools will be utilized to help stability, will consider whether current monetary policy is appropriate
- Remarks that commodity prices show extraordinary volatility, inflation outlook has improved somewhat.
- Notes that market turmoil and weak data will exhibit US growth outlook worsening, and downside risks are increasing.
- Fed will begin using reserve interest powers this week.
Federal Reserve Board Chairman Ben Bernanke said today that passage of the Wall Street bailout bill earlier this month gave the government a full set of tools it can use to tackle the credit crisis, although he added that more traditional tools, like lowering interest rates, may well be used again as the crisis unfolds.
‘The problems now evident in the markets and in the economy are large and complex, but, in my judgment, our government now has the tools it needs to confront and solve them,’ Bernanke said in a speech to the Economic Club of New York today.
The Fed added it will employ all available tools to stoke growth and preserve “price stability.”
“The Federal Reserve retains powerful policy tools and will use them aggressively to help achieve this objective,” Bernanke said. “Fiscal policy can stimulate economic activity, but a sustained recovery will also require a comprehensive plan to stabilize the financial system and restore normal flows of credit.”
…the Fed said it is now ‘prepared’ to buy longer-term Treasury securities if the circumstances warrant such action.
Bernanke continued to emphasize that the central bank has additional tools available at its disposal now that its key lending rate is now at its “effective floor.”
Now let’s see what Ben Bernanke is up to this week:
Federal Reserve Chairman Ben Bernanke this week will offer assurance that help is on the way for the troubled U.S. economy and may offer clues on additional steps that could be taken to halt an ever-steepening dive.
With U.S. stocks closing at 6-1/2-year lows on Friday on fears big banks will be nationalized, Bernanke will likely be pressed on government plans to clean up the financial sector when he delivers the Fed’s semiannual monetary policy report to Congress in two days of testimony on Tuesday and Wednesday.
In addition, the Fed chief will face the challenge of making the case that the U.S. central bank, which has chopped interest rates to near zero and flooded markets with hundreds of billions of dollars, still has the ammunition to pull the economy out of its worst downturn since the early 1980s.
“He’s going to talk about the Fed still having tools in its tool kit and that it will do whatever it can to get the economy going,” said Joseph LaVorgna, an economist for Deutsche Bank Securities in New York.
…ah yes, awesome. Haven’t heard that one before. Anyone still listening to this guy?
Mr. Bernanke, we have had enough of your clueless nonsense. You have no idea what you are talking about. Spare us more tools, “innovative” ideas, platitudes, and mindless blather. Pack your toolbox, go home and read up on The Great Depression, Credit Expansion, and The Business Cycle. Until you are done, please do us all a huge favor: Shut the hell up.