Ben Bernkanke

[Allentownjake]

Watching 60 minutes, don't think I've ever seen a man in charge with more panic in his eyes.

[true_blood]

He should panic. Things don't look too good at all.

[TVDOC]

He should panic. Things don't look too good at all.

Unfortunately the result when elections become an episode of "American Idol", resulting in a bunch of adolescents in positions of power.......

doc

[Eupher]

Unfortunately the result when elections become an episode of "American Idol", resulting in a bunch of adolescents in positions of power.......

doc

So, what do we have here? Bernanke is the guy who was put in as Chairman of the Fed by GWB.

Per his Wiki article, this is the title of his PhD thesis: "Long-term commitments, dynamic optimization, and the business cycle". Where did this guy go wrong? If he's such a smart guy, what happened to his powers of reason and logic?

Is Bernanke such a political whore that he dances on both sides of the aisle? Does he forsake economic common sense for expediency?

Or did he magically become stupid after defending his thesis?

Another comment from the Wiki article that has me scratching my head:

They [Bernanke and his wife] refinanced their Capitol Hill home in late 2009 because they "had an adjustable-rate mortgage and it exploded." Now they have a 30-year fixed rate mortgage at a rate of a little over 5%. Bernanke and his wife own one car, a Ford Focus.[23]

WTF? A guy with a PhD in economics goes with an adjustable-rate mortgage? AYFKM?

[JohnnyReb]

WTF? A guy with a PhD in economics goes with an adjustable-rate mortgage? AYFKM?

Nope....when you're so smart you can't do anything right, you have two options, college professor or a government job.

[Allentownjake]

The guy has a theory that the Great Depression could have been prevented.

To me, I view depressions and recessions as forces of nature.   It would be like saying you could have prevented Hurricane Katrina.

What you can do is mitigate the damage and put yourself in a better footing for the recovery.

[true_blood]

WTF? A guy with a PhD in economics goes with an adjustable-rate mortgage? AYFKM?

I know, right? WTF?!

[TVDOC]

So, what do we have here? Bernanke is the guy who was put in as Chairman of the Fed by GWB.

Per his Wiki article, this is the title of his PhD thesis: "Long-term commitments, dynamic optimization, and the business cycle". Where did this guy go wrong? If he's such a smart guy, what happened to his powers of reason and logic?

Is Bernanke such a political whore that he dances on both sides of the aisle? Does he forsake economic common sense for expediency?

Or did he magically become stupid after defending his thesis?

Another comment from the Wiki article that has me scratching my head:
 

WTF? A guy with a PhD in economics goes with an adjustable-rate mortgage? AYFKM?

Well......this is coming from a guy who has one......a PhD is much more an exercise in persistence than it is a demonstration of ones intelligence.......

I don't know much about Bernanke, but I suspect if he really is a smart guy in the field of economics, he is probably faced with being dealt such a horseshit hand by our political leaders (who were who I was referring to as "adolescents"), that there is very little within his power to change.

Not an expert on national monetary policy (nor do I play one on TV),  but it just seems logical that considering the countries economic situation.......a good place to start would be to STOP SPENDING.  The Fed chairman has no control over what congress and the administration does........all he and the Fed can do is try to minimize the damage, and keep the country afloat.

YMMV

doc

[Eupher]

Well......this is coming from a guy who has one......a PhD is much more an exercise in persistence than it is a demonstration of ones intelligence.......

I don't know much about Bernanke, but I suspect if he really is a smart guy in the field of economics, he is probably faced with being dealt such a horseshit hand by our political leaders (who were who I was referring to as "adolescents"), that there is very little within his power to change.

Not an expert on national monetary policy (nor do I play one on TV),  but it just seems logical that considering the countries economic situation.......a good place to start would be to STOP SPENDING.  The Fed chairman has no control over what congress and the administration does........all he and the Fed can do is try to minimize the damage, and keep the country afloat.

YMMV

doc

I have a good friend of mine who has a PhD in musicology or music ed or some damned thing and he said the same thing - it's all about patiently climbing over the hurdles that the system puts in front of you. When you're all done with that they call you "Doctor".

One of the things I didn't say (mostly because 80% of what Wiki says is suspect anyway), but evidently Bernanke came within 40 points of so from maxing his ACT - which ain't bad in the smarts department.

I don't doubt the guy is intelligent - that is, until he takes out a freakin' adjustable-rate mortgage. That's inexcusably stupid....

[TVDOC]

I have a good friend of mine who has a PhD in musicology or music ed or some damned thing and he said the same thing - it's all about patiently climbing over the hurdles that the system puts in front of you. When you're all done with that they call you "Doctor".

One of the things I didn't say (mostly because 80% of what Wiki says is suspect anyway), but evidently Bernanke came within 40 points of so from maxing his ACT - which ain't bad in the smarts department.

I don't doubt the guy is intelligent - that is, until he takes out a freakin' adjustable-rate mortgage. That's inexcusably stupid....

It COULD have been that he never expected to remain the Fed Chairman past the end of the Bush Admin.......therefore he took out a five-year (or shorter) ARM thinking that he'd be gone........he received his share of incoming rounds during the Bush years as well, so he might have figured that the new pres would want his own guy.

I agree that on a long-term basis it's dumb, but the above would be my best guess, and armed with that possibility, I can see him doing it to shave a point or two off the rate for the initial period, in retrospect, I might've done the same thing.

doc

[Eupher]

It COULD have been that he never expected to remain the Fed Chairman past the end of the Bush Admin.......therefore he took out a five-year (or shorter) ARM thinking that he'd be gone........he received his share of incoming rounds during the Bush years as well, so he might have figured that the new pres would want his own guy.

I agree that on a long-term basis it's dumb, but the above would be my best guess, and armed with that possibility, I can see him doing it to shave a point or two off the rate for the initial period, in retrospect, I might've done the same thing.

doc

Okay, but when Zero hires him back on for another x years, don't you think he would've re-fied? I would've. And yeah, I know he's a busy guy and all, but if he's got one car between him and his wife (they apparently have a Ford Fusion), what the hell is she doing while he's out printing freakin' money for his new boss?

[TVDOC]

Okay, but when Zero hires him back on for another x years, don't you think he would've re-fied? I would've. And yeah, I know he's a busy guy and all, but if he's got one car between him and his wife (they apparently have a Ford Fusion), what the hell is she doing while he's out printing freakin' money for his new boss?

I'm sure his job rates a car and driver, paid by the taxpayers.  In order to avoid the IRS charging the hell out of him for that use of a company vehicle, he has to own one.  That was the way it worked when I was working and provided with a "company car"......if I didn't own my own vehicle, I got a 1099 for a fairly significant sum (the IRS assumption is that if you don't own a vehicle, you are using the company car for personal use, ergo taxable income).  Even if all that personal vehicle did was sit in the driveway.

doc

[Eupher]

I'm sure his job rates a car and driver, paid by the taxpayers.  In order to avoid the IRS charging the hell out of him for that use of a company vehicle, he has to own one.  That was the way it worked when I was working and provided with a "company car"......if I didn't own my own vehicle, I got a 1099 for a fairly significant sum (the IRS assumption is that if you don't own a vehicle, you are using the company car for personal use, ergo taxable income).  Even if all that personal vehicle did was sit in the driveway.

doc

You mean he can't hit the liquor store after a hard day at the office printing all that money (badly) without the IRS climbing all over him?

Poor guy. He's got a rough life.

 

[TVDOC]

You mean he can't hit the liquor store after a hard day at the office printing all that money (badly) without the IRS climbing all over him?

Poor guy. He's got a rough life.

 

You know......with all of his foibles, you have to give him some slack.......even if I was qualified, there isn't enough money in the country to get me to take that job, regardless of what he does, he is going to really piss off some powerful group, the classic lose/lose scenario......

doc

[gurn]

I like Bernanke. I think he's doing the best anyone can in a bad situation.
Not only that, I think he's exactly the right man for that job.
I supported QE2 also.

So far, the Dollar is up -- not down -- as the doomsters predicted.
Naturally you had the North Korean thing & the Irish government problem pushing it.

But China caused the North Korean problem to push the Dollar up.
That's how I see it. And the EU thing is really a sideshow.

Bernanke is a Southerner. He grew up in a small town in South Carolina.
He went to public elementary & high schools. Give the guy a chance.
He's not all that bad.

[Allentownjake]

I like Bernanke. I think he's doing the best anyone can in a bad situation.
Not only that, I think he's exactly the right man for that job.
I supported QE2 also.

So far, the Dollar is up -- not down -- as the doomsters predicted.
Naturally you had the North Korean thing & the Irish government problem pushing it.

But China caused the North Korean problem to push the Dollar up.
That's how I see it. And the EU thing is really a sideshow.

Bernanke is a Southerner. He grew up in a small town in South Carolina.
He went to public elementary & high schools. Give the guy a chance.
He's not all that bad.

 

Oil is at $90 and gold and silver are up hugely.

Judging the dollar by other fiats that are playing similar games is a common mistake of people who don't understand markets.

[gurn]

That's the argument I hear. Inflation is just around the corner.

Problem is -- it hasn't happened in the US. I'm betting the opposite,
reduced or even negative growth 2nd half of 2011.

That's what Bernanke is betting too.

Yeah but I know, inflation is just around the corner.

December, 2010 YTD overall inflation is under 2%

http://www.tradingeconomics.com/economics/inflation-cpi.aspx?Symbol=USD

But any day now. All those jobless people are going to ratchet up demand.
It's coming. Right around the corner.

[Allentownjake]

That's the argument I hear. Inflation is just around the corner.

Problem is -- it hasn't happened in the US. I'm betting the opposite,
reduced or even negative growth 2nd half of 2011.

That's what Bernanke is betting too.

Yeah but I know, inflation is just around the corner.

December, 2010 YTD overall inflation is under 2%

http://www.tradingeconomics.com/economics/inflation-cpi.aspx?Symbol=USD

But any day now. All those jobless people are going to ratchet up demand.
It's coming. Right around the corner.

Inflation is happening in energy prices, food prices, and consumer goods.

Inflation is not happening in housing (giant bubble just popped) and shit you don't need to survive.

That is generally what happens with money printing in a depressionary cycle.

[Lacarnut]

I like Bernanke. I think he's doing the best anyone can in a bad situation.
Not only that, I think he's exactly the right man for that job.
I supported QE2 also.

So far, the Dollar is up -- not down -- as the doomsters predicted.

Helicopter Ben is doing a lousy job in my opinion. Printing/spending more money is not the answer to the economic mess we are in. Cutting spending and firing thousands of worthless Federal employees is what we should be doing. BTW, Moody is threatening to reduce our bond rating from AAA if this tax bill loaded with pork to the tune of 800 billion dollars is passed. You think that is a good thing. 

The dollar is up against the Euro because they are in asshole to appetite debt also. In other countries like NZ, the dollar is DOWN.

Uncle Ben has a plan to reduce our debt which is to devalue the dollar and print more money. He wants a little inflation. Bad thing about that is once inflation takes hold it can get out of whack just like in the Carter years. 


   

[true_blood]

Helicopter Ben is doing a lousy job in my opinion.

I agree. I don't think he's so sure of himself any more.

[Lacarnut]

I agree. I don't think he's so sure of himself any more.

He appeared before a college audience in China and regurgitated the same crap as over here that he is not trying to devalue the dollar. They laughed him off the stage. Even educated young uns thousands of miles away get it. Being from the South, I get it also. 

[gurn]

Helicopter Ben is doing a lousy job in my opinion. Printing/spending more money is not the answer to the economic mess we are in. Cutting spending and firing thousands of worthless Federal employees is what we should be doing. BTW, Moody is threatening to reduce our bond rating from AAA if this tax bill loaded with pork to the tune of 800 billion dollars is passed. You think that is a good thing.  

The dollar is up against the Euro because they are in asshole to appetite debt also. In other countries like NZ, the dollar is DOWN.

Uncle Ben has a plan to reduce our debt which is to devalue the dollar and print more money. He wants a little inflation. Bad thing about that is once inflation takes hold it can get out of whack just like in the Carter years.  

Bernanke does not have the power to cut Federal spending or to fire thousands of worthless Federal employees.
Maybe a Republican House will show some spine in those areas. But that is outside Bernanke's power.

Whatever complaints people may have or audiences of Chinese students may believe,
the Dollar has not collapsed because of QE2, nor has overall inflation risen to over 2%.

The worst thing that could happen to China -- I assure you -- is for the value of the Dollar to fall.
Chinese inside the PRC tend to be complacent and rather ignorant about the outside world.
I've been to China quite a lot. It's a place I don't want to live. It's one of the most corrupt places
I've ever been to as well. 

So I really don't give a flip what Chinese college students think. And Moody's?
So what? North Korea lobs a few more missiles & watch what happens to the Dollar & to
those Moody's ratings.

[Lacarnut]

Gurn

Here is a secret I will share with you. The Chinese are not stupid. They know that printing massive amounts of dollars will cause the dollar to be worth less. That is just common sense. The Chinese, Russians and other countries are talking about trading in other currencies. They are also talking about lowering their exposure to the dollar. Wonder why that is if the dollar is the world's greatest currency on the face of the earth.  Devaluation means that the dollar is worth less and so is the value of the debt they are holding. We are printing so much money and piling up so much debt that the day of reconking will come one day. They will refuse to buy our debt and then what, or they will demand much higher interest rates. Note, Bernanke got tabbed Helicopter Ben for a reason.

Moody's lowering our bond rating is a big deal. Ask any state that has had theirs lowered. FYI, the interest rate goes UP when that happens. Inflation will go thru the roof. If the government included energy and food in their inflation figures, the rate would be much higher than 2 per cent. Same with the unemployment figures. Plus, I don't trust these government voodoo figures.

[gurn]

Gurn

Here is a secret I will share with you. The Chinese are not stupid. They know that printing massive amounts of dollars will cause the dollar to be worth less. That is just common sense. The Chinese, Russians and other countries are talking about trading in other currencies. They are also talking about lowering their exposure to the dollar. Wonder why that is if the dollar is the world's greatest currency on the face of the earth.  Devaluation means that the dollar is worth less and so is the value of the debt they are holding. We are printing so much money and piling up so much debt that the day of reconking will come one day. They will refuse to buy our debt and then what, or they will demand much higher interest rates. Note, Bernanke got tabbed Helicopter Ben for a reason.

Moody's lowering our bond rating is a big deal. Ask any state that has had theirs lowered. FYI, the interest rate goes UP when that happens. Inflation will go thru the roof. If the government included energy and food in their inflation figures, the rate would be much higher than 2 per cent. Same with the unemployment figures. Plus, I don't trust these government voodoo figures.

I'll share a secret with you. The worst thing that could happen to the PRC would be for the RMB to rise sharply in relation to the Dollar.
You can put that in the bank. You can even take it to Moody's.

The PRC has two modes - whining & boasting. Yes. They whine about the falling Dollar. Then what do they do?
They buy more Treasuries. They order their midget vassal state NK to sink a ship or lob a few missiles into S. Korea.

I don't know how many times you've been to the PRC. You seem to know a lot about it.
Inflation? I keep track in when I'm China. I buy stuff at one of the innumerable 7/11's I see there.
I compare the prices from one trip to the next.

Food inflation is there & growing already baby.
Aunt Samantha* isn't the only nation printing currency.

The China-Russia currency thing is only between those two countries. The PRC is not demanding
that the US convert its Dollars to Rubles for trade. That would be really stupid. Likewise, Russia still happily accepts
hard currency for its trades with the West.

A Question - what is the exchange rate between the RMB & USD today?

Another question - What was the exchange rate before QE2?

What happened in between QE2 & today?

Heh heh. Answer those questions and you're on the road to wisdom.

***

(*Known as "Uncle Sam" before the surgery.)

[Lacarnut]

I'll share a secret with you. The worst thing that could happen to the PRC would be for the RMB to rise sharply in relation to the Dollar.
You can put that in the bank. You can even take it to Moody's.

The PRC has two modes - whining & boasting. Yes. They whine about the falling Dollar. Then what do they do?
They buy more Treasuries. They order their midget vassal state NK to sink a ship or lob a few missiles into S. Korea.

I don't know how many times you've been to the PRC. You seem to know a lot about it.
Inflation? I keep track in when I'm China. I buy stuff at one of the innumerable 7/11's I see there.
I compare the prices from one trip to the next.

Food inflation is there & growing already baby.
Aunt Samantha* isn't the only nation printing currency.

The China-Russia currency thing is only between those two countries. The PRC is not demanding
that the US convert its Dollars to Rubles for trade. That would be really stupid. Likewise, Russia still happily accepts
hard currency for its trades with the West.

A Question - what is the exchange rate between the RMB & USD today?

Another question - What was the exchange rate before QE2?

What happened in between QE2 & today?

Heh heh. Answer those questions and you're on the road to wisdom.

***

(*Known as "Uncle Sam" before the surgery.)

I care less how many times you have been to China or their 7/11 stores or what the exchange rate today was. I know what the rate of silver,gold, oil, platinum and palladium is today. I am also a collector of Chinese Panda proof coins in the Kilo, 5 ounce and 1 ounce variety. 

You know nothing about economics. Printing money will devalue our currency. That is why gold and silver and other metals have dramatically gone up in the last couple of years. I have made tens of thousands of dollars in that time frame. So chumps like you keep on believing Helicopter Ben is doing a good job. I love it.