UPDATE: BEN ON A BINGE, SAYING ALL THE WRONG THINGS, LOVING SOUND OF HIS OWN VOICE. MEANWHILE: HYPERINFLATION 2, NOT FOR FAINT HEARTS
CENTRAL BANKERS THAT LOVE TO STIMULATE TOO MUCHWHEN KEYN-BEN SPEAKS THIS MORNING AT JACKSON LAKE LODGE near the foothills of Mount Moran, he should talk about several important things, though sadly he probably won't:
First, Ben B should talk UP the economy saying our country has had enough stimulus, that it is working its way in and through the system and we need to let it work without further ado and without, WITHOUT, any more stimulus nonesense by the misguided federal government. The only stimulus we really need is lower taxes and less spending.
Second, Ben should say the Fed will stop buying up all our debt in the form of Treasuries---causing the greatest toxic bubble in history----and let the Chinese and other countries buy what they will, since European debts ratios are even worse than ours. Ben needs to talk reducing the soaring deficit rather than enabling it.
When the Fed buys up all the Treasuries---now a toxic asset and growing gargantuan bubble---it is just kicking the can down the road further towards an even greater crisis and extremely painful day of reckoning.
Third, Ben should talk about starting to raise interest rates after keeping them artificially low for far, far, far too long. This zero interest policy has artificially proped up stock markets and is certainly hurting savers, especially seniors whose income has been drastically slashed. It needs to end. Now.
Fourth, Ben needs to say we will get through this and we need to be patient.
Then he needs to sit down and do less instead of more. Get off his Keynesian horse and take a chair beside the ghost of Milton Friedman.
Sadly, Ben will probably not do any of these things, and needs to be fired at the earliest possible moment.
Unfortunately misguided President Obama is too busy buying shrimp and playing golf to fire him!
H/T, Tom S.
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