Politico had a catch-up article about the interesting coalition opening up around Ben Bernanke’s re-appointment and issued of Fed transparency. I say a “catch-up” article because they’re just getting to where I was five days ago. Nonetheless, they have some interesting additions to this.
I was amused by Jim DeMint’s palpable fear about being on the same side as Bernie Sanders in any debate:
“It’s very scary,” said DeMint, a darling of the tea party movement, when asked how he feels finding himself on the same side of the Fed issue as Sanders. But it didn’t give him pause about signing on to Sanders’s audit-the-Fed bill, which has 30 co-sponsors and mirrors the measure sponsored in the House.
“I’ve never seen so much agreement on hardly anything,” DeMint said. “When a man’s right, they’re right.”
Interestingly, here’s an issue where there is that vaunted “bipartisanship” that all the Villagers supposedly seek. But this is the wrong kind of bipartisanship because it attacks the establishment status quo, and we can’t have that.
There have been cracks in the facade, however. In particular, Bernanke’s head-scratcher of a confirmation hearing, when he opined on fiscal policy by saying that Congress should cut Social Security rather than stimulate job growth, has only increased the anger over his re-appointment. Even Paul Krugman had to chide the man who formerly hired him at Princeton for his ill-advised remarks.
The stimulus has already had its maximum impact on growth — and there’s no sign that private final spending is ready to pick up the slack [...] Bear in mind also that fiscal policy is slow to get underway. Waiting to be absolutely, totally sure that we really need more strikes me as deeply irresponsible.
This was a very unhelpful statement.
Today, Bernanke gavea speech of “frequently asked questions” at the Economic Club of Washington, DC. He predicted that the economy would grow modestly in the next year – “sufficient to bring down the unemployment rate, but at a pace slower than we would like.” And then he managed to not mention one way where he would be able to bring unemployment reductions toward a pace more to his liking, even while saying that the Fed’s mandate is “to promote price stability and maximum employment.”
In fact, a good portion of the rest of the speech was about how to control inflation (which isn’t happening right now) and exit from its monetary policy actions.
It would be nice if we had a Federal Reserve chairman who, when he cites the Congressional mandate “to promote price stability and maximum employment,” actually means it.
UPDATE: Jeff Merkley (D-OR) says that he is “still wrestling” with whether or not to confirm Bernanke for a second term. No word on whether he would seek to delay cloture on the bill.




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[It's Only Bipartisan If A Republican Says So]
It will be fun to watch DeMint’s Teabaggers react to his alliance with — gasp! — a Socialist.
I suppose Obama’s second choice to head the Fed would be Larry Summers, so there’s that.
For the sake of argument, let’s say Bernanke isn’t confirmed. Got any ideas on who might be appointed?
I supported his confirmation until that hearing. What the hell, Ben? He’s a brilliant man who is continuing to do what Greenspan did: let politics get ahead of economics. It’s really a shame.
Oh well. I guess I don’t oppose him entirely, but after that hearing, I’m in the “I don’t care what happens column” along with Atrios.
Catholic Bishops?
I think Obama would be in for a rude awakening if he appointed Summers. I doubt Summers has a lot of friends where it counts.
I bet Hank Paulson’s free nowadays
Well, as Rayne said earlier, you can’t be against Bernanke unless you have a progressive substitute.
heh Wish I could think of something that would put their skirts in a wedgie.
Oh, and David, congrats on beating Drudgico to the punch — we’ve come to expect that kind of performance from you, but it must feel great to see the lead stretch to five days. What a bunch of losers they are over there.
Know any progressive banksters?
Paul Krugman, Dean Baker, James Galbraith, Bill Black, Sheila Bair, Elizabeth Warren.
Any will do.
Elizabeth Warren
Well, duh, of course not. Which is why Rayne’s screed is so beside the point.
:) It appears I owe you a beverage….
I think it’s more important to look at what we may get as a condition of re-appointing Bernanke, too. Namely, a real audit of the Fed’s balance sheet.
We (progressives) have to get a seat at the table to be able to argue..)
Ain’t gonna happen.
Ding Fuckin’ Dong!! Holy moly, the banksters on Wall Street would be jumping out off windows (figuratively, mods).
If you characterize Rayne’s post and comments as “screed” please detail what exactly makes them “screed” and why your opinions either are or are not “screed.”
I thought they were, in both of your’s and Rayne’s cases, just opinions.
Nice list Teddy. Seconded.
Bankers =/= economists. Economists are not necessarily fit to make banking policy.
And no to Liz Warren:
http://www.housingwire.com/2009/06/02/viewpoint-the-cop-ralfs-on-talf/
Oh, clearly, according to Rayne, Warren, Krugman, Gailbraith, Black.
Bair could not pass muster.
Wow, talk about yer bad habits.
I was thinking more who Obama would actually be likely to appoint. As a movement we haven’t built a big enough hammer to have a say. Yet.
The “best Fed chairs ever,” Messrs Greenspan and Friedman, were not bankers.
This era calls for a non-banker atop the Fed.
Screed because Rayne charachertized himself as our parent who would insrutct us to clean up the floor;
No bias on that site. No, siree. Sheesh.
Their view makes me love her more.
“he opined on fiscal policy by saying that Congress should cut Social Security rather than stimulate job growth”
What information does he have that we don’t?
Job Growth = Expansion – Job Exports – Layoffs, is perhaps negative? For a very long time?
Look, we have LOTS of economic thinkers, and plenty of big donor bankers, too, for that matter, over here on the left side of the aisle. It’s high time Obama acknowledge that Democrats are Very Serious People too, and can run our large institutions like the Fed and DoD and our embassy in China (and the relationship attached to it).
It’s very discouraging to see him go to the GOP for these important positions.
Bernanke is a Bush holdover. Time for a Change, I Hope.
Why don’t you reply to the actual points about her instead of claiming supposed bias? Everyone has biases, mate, including this site. Sheesh.
@ Teddy:
Well I would hardly call Greenspan the best Fed Chair ever, even if the serious people in the Village thinks so.
Paul Volcker, now there’s a Fed Chairman. I probably agree with Stiglitz about him: fired because he wasn’t an adequate de-regulator.
Bill Black is also not someone I’d be excited and giddy over, when he can’t even read the law properly:
http://economicsofcontempt.blogspot.com/2009/04/william-k-black-is-idiot.html
It wouldn’t surprise me to find a piece on digging up Miltie and reburying and building a shrine for him on the floor of NYSE.
“Look, we have LOTS of economic thinkers, and plenty of big donor bankers, too, for that matter, over here on the left side of the aisle. It’s high time Obama acknowledge that Democrats are Very Serious People too, and can run our large institutions like the Fed and DoD and our embassy in China (and the relationship attached to it).”
I can get behind that.
I don’t use snark tags, but you may infer them from my description of Messrs Friedman and Greenspan, whose thinking nearly destroyed the world economy.
You’re right. It’s the reason I don’t read RedState, LGF or any of the other reichwing sites. I have a different world view than Wall Street. Housingwire is for, by and about the banksters. I’m at the opposite end of the spectrum. I’m not into arguing for the sake of arguing. I’d probably be considered a troll at housingwire.
I know you included snark, thus the quotes. Thus the “even if the village thinks so.”
Sorry for any misinterpretation.
warren mosler for fed chair, can’t think of anyone else who even comes within a mile.
(although give me another year to study up and maybe i’ll find more people that meet my ever increasing standards)
More reading, damn. Thanks.
easy one.
warren mosler has a blog. he even answer questions, seems like a nice guy to boot. really understands the monetary system, believes in public purpose for gov. has all kinds of interesting ideas (check out his mandatory readings link). seven deadly frauds is both mind blowing and a fun read (with amusing stories including one with summers and one with gore). and has connections to wall street (where he came from) and progressive academic economists.
There is a very interesting quote from Noam Chomsky at
FDL Action, see #34. The main point is that the teabaggers really have grievances, and progressives should be making common cause with them. Here we see some glimmerings of it actually starting to happen.
funny you should mention that. mosler has actually gone to some of the tea parties to speak (from his home in the VI, so not a short drive). i really that about him too.
I couldn’t agree more.
Might make a good simple seminal diary. *hint*
forgot to mention, mosler also posts a great set of weekly econ data charts from one of his companies:
http://valance.us/valance_charts.html
second that!
I found his site and blog. I’ll do some more reading there. It didn’t take long before the automatic “Shields Up!” signal sounded but I thought, if selise likes this guy, I’ll have to check him out. CV is very impressive.
Here is Chomsky talking on this at the Commonwealth Club. Well worth listening to, IMO.
builds race cars too.
not your standard bankster. does it help that he writes papers with galbraith? that argentina used a version of his jobs program to put 5% of their workforce to work within 4 months when the economy crashed and burned and people were dying the streets during resulting social unrest? that he really really understands how the fed and treasury work and has made progressive proposals for massive changes and improvments?
otoh, if you find reason to dislike him, please let me know and i will revise opinion as required.
How does that come about? It could be possible for me, depending on when and how much time it would take. But I don’t even know how to start (I’m just a lurker and occasional poster).
thanks! i haven’t listened to that one yet. will do.
FWIW, the link I posted to that stops at 6:30 (about 2/3 through). There is also a YouTube link , but it seems to have the same problem. Not sure why.
LOL No, it’s that I don’t initially trust capitalists. It’s a world view thing. Plus I’m really jaded. One who actually uses his expertise for the common good is a rare bird indeed.
In any case, I find what Chomsky is saying a very interesting point. Things are really bad for lots of people, and the teabaggers are clearly motivated by that. Why let the right capture them? At best, it’s an opportunity lost, at worst, well never mind…
You can write your own blogpost here.
From the frontpage here at FDL you’ll see a box on the left: “Seminal Reader Wire” and at the bottom of that box is “Write A Diary.”
Do it!
watertiger is upstairs!
Late Night: “I’m Dreaming of a Whine Christmas…”
i just checked a and have the mps in my itunes already downloaded from commonwealthclub podcast. but have not listened to it yet. thanks again for the heads up .too much tot read, listen to, etc — it gets hard to prioritize.
Um, think firmly, hoss, stiff resolve, a wooden discipline for rigid purpose.
/cliches
Echoed, and with that OTHER TP other place that was mentioned earlier.
What’s WRONG with a fellow prog blog they can’t acknowledge?
A disservice to everyone, including the readers, he whom I won’t name Joshua . . . fuckin whoops.
My bad.
i first heard of warren mosler when i listened to the levy institute minsky conference from last april. he spoke right after galbraith and before rob parenteau and randy wray (session 6 in link below all good taks imo). mosler is of the more optimistic branch of the post keynsians (as opposed to say steve keen, but they all seem to be for the most part quite friendly).
http://www.levy.org/vevents.aspx?event=23
Capone, Pretty Boy Floyd, Dillenger, James Gang, Butch and Sundance . . .
Oh, you mean deposits, not withdrawls . . . my bad . . .
“Some will rob you with a six gun, others with a fountain pen.”
WARREN! WARREN! WARREN! WARREN!
WARREN! WARREN! WARREN! WARREN!
WARREN! WARREN! WARREN! WARREN!
WARREN! WARREN! WARREN! WARREN!
WARREN! WARREN! WARREN! WARREN!
Elizabeth. Warren.
???????
David, am I missin somethin? You take a blow to the head?
Reappoint Bernanke, and get audit of Fed?
I don’t THINK so homey!
Or does someone have some shit on him that would force him to a firing squad if he DIDN’T woik a real audit?
When hell freezes over.
When wet ducks fly at night.
When fat men steal home ahead of the count.
/cliches
OUthouse seat will freeze yer butt to the suckah in the winter it’s so cold there and then . . . ;-)
Nah, yer reject is batted back to the 30th row by Chamberlain. Wilt, that is.
And easily so, too, at that, also, ya betcha.
I”m sorry, is that a hooded or veiled threat?
*squawk*
Atop?
Straddled upon?
Hunched over?
*blinks*
*G*
Give me The Black Swan or Dr. Doom!!!!!
(only half assed kidding, using the big part of my ass kidding)
All these Wall Street assholes are the wizards beyond the curtains pulling the strings in the land of Oz.
The rest of us [in or out of Congress] either are or are not the munchkins.
Hello 1%, can we have out ball back, mister?
It’s tough being punked this early on the site, ya think Teddy?
Sigh.
This meme, it’s getting to me like a bad rash from too much time in the tropics, and I don’t mean between my toes.
Somehow, I just WANT to try and partner with 23% fucking wingnut whackaloons on something.
Yet, when I drink Merlot and dip peppermint candy canes in it, I find myself getting all snarky and shit.
And still, I couldn’t dry hump Sarah Palin . . .
I’m just SO not worthy.
Sigh, lost you again . . . .
Hmmm . . ok, you invoked Chomsky . . . maybe I’m too deep into the peppermint candy canes . . . still.
Partner with teabaggers?
I’ve been FOLLOWING that meme for a while now.
Don’t see it leading to much, they’re too far gone . . . doubt they can SEE commonality with Yankees or beyond a 3rd grade reasoning.
I just can’t see it, myself, this partnership with ‘them’ . . . sorry, and I mean that truly.
I’m open to changes, but for tonight, I’m stickin with the thought that the 23% can’t help me, in ANY way, without hurting me MORE, down the road.
And I think I really mean that, this time.
Is he for reinstalling regulations?
Is he for separating banking from financing?
Is he for deleveraging the power of The Fed?
Is he for investing into the ‘we the people’ for jobs and upward mobility to re strengthen our nation and it’s economic base?
Is he for breaking up monopolies in media, transportation, real estate and all of FIRE?
Is he for downward transfer of the wealth that’s been accumulated to the 1%?
Is he anti war, non interventionist?
Is he, is he is he is he?
If not . . . . I’d much prefer Mz. Warren.
Thank you.
“Why let the right capture them?”
Good lord, are you serious?
Capture them?
THEY ARE THE PHOOKIN WHACKALOON RIGHTWING TARD NUTZ!!!!
*headdeskrepeatedly*
Extinct, as we know them . . . yes?
Whoops, all gone, dang that WT . . *G*
Hah! The tea baggers are currently in a state of schismatic, sectarian warfare amongst themselves and their original founders. They won’t unify with the bat-sh*t crazy right wing corporatist Republican politicians, so it’s extremely unlikely that they would unify with the left over even a single issue of common concern. The reality is they blame the left for all those problems. So their remedies are far from what progressives would see as viable solutions.
um, I didn’t really say what I would support (which would not be Helicopter Ben). The fact is that DeMint et al. are conditioning his re-appointment on passage of the auditing legislation. If they get that, and I think it’s possible, I don’t know that they hang on to try and kill Ben, who may have 60 votes at any rate.
Get a clue everybody, this President is a blue dog. He really was a leader in the health care debate…Look at his pick for the Supreme Court, the lack of support for a public option, no accountability for war crimes, opposition to the restoration of Glass-Steagall and consorting with banksters.
I hope ben looses, I hope he tries to nominate summers, then he can feel the heat.
Unless a lot changes, especially in the financial/economic front I won’t vote for him again. I have never, and will never vote for a republican, but this is this bitterest disappointment I have felt politically in 40 years.