Quote from deucy28:
If I have this right, darkhorse, applying your game theory, Bernanke surprised us in the degree he did (my gawsh....first the Supreme Court decision and now the FED......can my heart take any more ?) because he played in his view the BIG QE card for self preservation interest of himself and the independence of the FED, opposite to the otherwise impressive series of smaller, rational cards pointing to the rationale that advancing the QE would have marginal effect if any other than piling on the national debt.
Yep.
The view that Jimmy Rogers and others promote is that Bernanke and co. are simply stupid. But this seems illogical. Are these guys really that dumb, or are they morally compromised instead?
Quote from deucy28:
Why then, many weeks back, during his (last ?) appearance before congressmen, he so much as said it was insane for Congress to believe the FED can bring back this sick of an economy with monetary modalities while Congressmen are sitting on their hands the last three years not implementing fiscal solutions ? He so much as said the FED no longer has sufficient horsepower to stop a national fatality (my word, but his meaning). It would appear he accelerates at least his own hypocrisy and the prospect of not getting installed to the hall of fame by saying one thing and behaving dramatically the other way.
Good question. It really doesn't make any sense.
Especially because, if Bernanke is worried about a do-nothing congress, then he should be extra worried that the Fed doing too much will provide cover for congress to
continue doing nothing. If the Fed acknowledges that congress must facilitate real change, then the Fed must also acknowledge that its own palliative policies are a negative to the extent they allow congress to pass the buck and sit on its ass because the Fed juice is in the punchbowl.
Again, one seems forced to conclude that Bernanke is either a complete moron or is driven by hidden motives. The second makes more sense...
Quote from deucy28:
Many months ago, I read that Central Bankers the world over are generally more fearful of deflation with few rounds in the gun vs. inflation with an arsenal of weapons. Deflation, when the genie is out of the bottle is virtually impossible to put it back in before Depression. Bernanke played the big card Thursday that pulls the genie that much further out of the bottle.
The irony is that the Fed's actions have actually
increased the likelihood of a disastrous deflationary outcome in our view. Will write more on this later.
Quote from deucy28:
The notion of him playing the Big QE Card to keep Obama and Democrats in Congress that in your mind allows him to think he and the FED are safer in keeping their independence that way at the knowing expense of furthering the demise of the future of the country and to be dealt with later is hard to swallow; he canât help but know it accelerates the assurance of muddle along economy and possibly Armageddon-ish scenarios. Of course he must know that dangerous course doesnât exactly look promising for him to to be able to leave a lasting, glowing legacy which I would argue is more important to him than a job he wants to keep that doesnât allow him to be a winner when having no bullets remaining that are effective. I mean what's the point ? Exceptionally well written essay with lots of make-sense thinking, but tell me it isn't true: The Chairman just as well wishes to sell the country down the road for his own self aggrandizement as Congress already has proven and continues to prove it does.
I don't know which is scarier, the notion that 1) the Fed and pretty much all of Washington are so corrupt and deviantly motivated they would steal the dimes off a dead man's eyes or 2) the whole academic crew running the Fed is so fucking stupid they would barely qualify to manage a McDonald's in the real world. But it seems to be one or the other. Liars or fools, take your pick...
