The Senate just voted 96-0 to impose a one-time audit of the Federal Reserve’s emergency actions during and after the financial crisis.
Bernanke
I can’t figure out if he’s formed an opinion.
* “Mr. Greenspan…oops, Freudian slip”
* “WE SHOULD SEND YOU BACK TO PRINCETON”
* [gratuitous mention of how he used to play baseball]
* “You are the definition of a moral hazard”
* “I will do everything I can to block your reign of terror”
As a part of our “All Beard Wednesday” programme, we would like to call your attention to a Reuters piece so bold as to compare the Fed Chairman to Clark Kent and Superman.
True, the piece badly mixes metaphors, implying Superman was some kind of “swashbuckler,” and lamenting that Bernanke might lose some of “his swashbuckling spirit.”
The Fed has every reason to be politically intimidated. Relations between lawmakers and the Fed are close to an all-time low.
Much congressional ire has been focused on the Fed’s role in bank bailouts. There has been nervousness over its expanded balance sheet, which more than doubled during the crisis to around 14 percent of GDP.
For some Republican Senators such as Jim DeMint, the Fed’s purchase of U.S. Treasuries has been aiding and abetting “reckless” spending by Obama. DeMint is not alone in believing that credit easing is a covert means of devaluing the dollar. In the House an increasing number seem willing to listen to obsessively anti-Fed Congressman Ron Paul.
It is not surprising that correspondents for foreign outlets might be desirous of a more activist and powerful Fed. They, after all, seem less blinded by the trappings of power and can therefore, see what a pack of knee-biting wild dogs Congress is, and how completely they will destroy the United States if permitted to tinker with the structure of the Fed- much less continue to meddle with the economy.
Bernanke: Back to Clark Kent [Reuters]
UPDATE: Tim Geithner Is IN NO WAY LOBBYING FOR BEN BERNANKE’S JOB, Making Jokes At Bernanke’s Expense, Says Treasury
By Bess Levin
Earlier this morning, during Tim Geithner’s appearance on the Hill to discuss the Obama administration’s plan to overhaul financial regulations, Senator Corker referred to Timbo as “Mr. Chairman.” Geithner responded, “I’m not ‘Mr. Chairman.’ Yet.” Because we are prone to giant leaps in logic, making mountains out of molehills, and going to a place in our minds where Bernanke is a thug who will potentially make those who tick him off pay, we suggested that T. Geith was angling for B-nanke’s job, had overstepped his bounds, and ought to watch his back.* Apparently, that wasn’t what Geithner meant. We’ve just received an e-mail from the Treasury, clarifying the Secretary’s line of thinking/sense of humor.
Bess,
To clarify your post regarding the Treasury Secretary’s remark: He was, of course, referring to the Financial Services Oversight Council (he isn’t chair yet because it hasn’t been created yet.)
Thank you for posting a correction,
Meg
Meg Reilly
Office of Public Affairs
U.S. Department of the Treasury
Now you know. Also, I put in a request for an interview with TG, so fingers crossed there.
*Also, it’s a slow news day and we needed a post.
Benny boy was at it again today. Sporting yet another one his pimped out monochromatic suits, Bernanke electrified the House Budget Committee today with an impressive stand up routine focused on deficit reduction. One liners such as “Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth” were a bit of a departure from Uncle Ben’s more bread and butter material on green shoots, and there were some hecklers who tried to throw Bernanke off his game. Republican Paul Ryan momentarily quieted the raucous crowd with some lunatic fringe thinking.
“The Treasury is issuing debt and the central bank is buying it,” Ryan told Bernanke.
“It gives the alarming impression that the U.S. one day might begin to meet its financial obligations by simply printing money.”
So printing money to pay off debt is a problem for Mr. Ryan. What is this nut job going to demand next? A stable currency? Perish the thought.
