Hi DJ -
Well, seems to me the last time I talked about Bernanke you started waving your hands like you were drowning and going down for the third and last time, screaming no mas!
Because, prior to being hired by the Fed, his specialty was the economic history of the Great Depression.
But I do think I can tell you why I like him without making you so bored that water comes from your eyes.
You know how in a good car the dashboard has all kinds of gauges - tachometer, speedometer, temperature gauge etc.? Same I guess for all big fancy machines.
The Federal Reserve system is like a gigantic machine deep underneath the real economy, and the duties of those who run it are to pay attention to the gauges, and make sure that it's not running too fast, or too slow, or too hot, or too cold, and otherwise get out of the way of the real economy.
There have been several famous people who really understood how to run it, and lots of less famous people. Bernanke used to be a less famous person who know how to run it, and now he's a famous person who knows how to run it.
I willingly, freely, concede that the Federal Reserve system could be supplanted by another system which might even be better. But this is the system we have, and changing systems is as crazy as putting your machine into reverse when you are going top speed forward.
If the world goes to hell, it won't be all of a sudden due to reversing direction. |
