Jordan To Bernanke: Cough It Up!

It looks like Congress is finally getting worried -- as they should be -- about "monetary policy."

Specifically, they appear to be rather concerned as to whether The Fed can "unwind" its "extraordinary measures" without utterly destructive side effects.

The real problem, unfortunately, is that The Fed has enabled Congress to deficit spend without limit and without the market signals that would ordinarily constrain such behavior. Now, with a trillion dollars a year plus worth of deficits, the government has spent the last five years without the pushback of market signals that would otherwise have constrained its actions.

This in turn has added six trillion to the debt of the United States, all of which has done exactly nothing to actually permanently advance the economy, but the market's warning that this was and would be ineffective was lost because of these intentional distortions.

Now Congress has a problem -- The Fed has prevented the market from doing its job, Congress has pretended that there are no consequences to these actions, and what's worse both parties and the Administration have become drunk on the ability to pull this crap on a repetitive basis.

So now what? Now Congress wants an explanation? Good luck -- what you're likely to get is what you've gotten thus far -- half-answers and worse, half-truths or outright lies, such as when Bernanke said "The Federal Reserve will not monetize the debt." while it was doing exactly that.

Does Congress have the balls to stomp on this little man's neck and put a stop to his acts, knowing that doing do will mean a forced end to deficit spending?

Worse, should the blended interest rate on government debt rise to a mere 5%, a level that is consistent with short-term interest rates not long ago, the interest expense alone would be over $800 billion -- or roughly 1/5th of the total US Budget and more than a third of all tax receipts.

--snip--

(Jim Jordan's letter to Ben available at link above.)

Quote: FP123 wrote in post #1

---

Jordan To Bernanke: Cough It Up!

It looks like Congress is finally getting worried -- as they should be -- about "monetary policy."

Specifically, they appear to be rather concerned as to whether The Fed can "unwind" its "extraordinary measures" without utterly destructive side effects.

The real problem, unfortunately, is that The Fed has enabled Congress to deficit spend without limit and without the market signals that would ordinarily constrain such behavior. Now, with a trillion dollars a year plus worth of deficits, the government has spent the last five years without the pushback of market signals that would otherwise have constrained its actions.

This in turn has added six trillion to the debt of the United States, all of which has done exactly nothing to actually permanently advance the economy, but the market's warning that this was and would be ineffective was lost because of these intentional distortions.

Now Congress has a problem -- The Fed has prevented the market from doing its job, Congress has pretended that there are no consequences to these actions, and what's worse both parties and the Administration have become drunk on the ability to pull this crap on a repetitive basis.

So now what? Now Congress wants an explanation? Good luck -- what you're likely to get is what you've gotten thus far -- half-answers and worse, half-truths or outright lies, such as when Bernanke said "The Federal Reserve will not monetize the debt." while it was doing exactly that.

Does Congress have the balls to stomp on this little man's neck and put a stop to his acts, knowing that doing do will mean a forced end to deficit spending?

Worse, should the blended interest rate on government debt rise to a mere 5%, a level that is consistent with short-term interest rates not long ago, the interest expense alone would be over $800 billion -- or roughly 1/5th of the total US Budget and more than a third of all tax receipts.

--snip--

(Jim Jordan's letter to Ben available at link above.)

---

Jim Jordan was my Congressman until the redistricting (I'm still in mourning), and he is the real deal.......completely consistent in conservative principles and an honorable man.

It's people like Jordan who give me a glimmer of hope that Washington may some day be fixed.

Quote: Cedric wrote in post #4

---

Quote: nerd wrote in post #3

---

But, but, but, but, mr rove and de bushes and the gop insiders, says we need to go along to get along and people will like us more....have another drink bonyard and canter. You voted for this crap.

---

The POTUS appoints the Fed chairman.

The POTUS for the past 4 years has been Barack Obama.

Obama nominated Bernake for Fed chairman in 2009.

The more I see of garbage comments such as this from you, the more convinced I become that you are a Democrat operative/plant/troll.

---

Quote: musiclady wrote in post #6

---

Some people are just unhealthily obsessed with hating George Bush and Karl Rove.

Unfortunately it keeps them from seeing many of the real issues.

---

As FDR said . . .

if it happens in politics,

it was PLANNED THAT WAY.

Regardless of appearances, Those appointments are above the Presidents' paygrade.

Some Presidents may have more . . . opportunity to voice a preference . . . than others.

But they are all puppets on a string.

The monetary system is being deliberately crashed. The sources attesting to that are high level and multiple.

None of the congress critters can BEGIN to do much more than protest. And even protesting very loudly can be hazardous to their health and the health of their families.

FP, I haven't kept track of the projected actual debt level . . . I think I've heard everything from $17 TRILLION and up to $27 TRILLION or more.

What have you read?

It's all Monopoly money . . . and scheduled to become more so, IIRC.

Quote: Quix wrote in post #10

---

FP, I haven't kept track of the projected actual debt level . . . I think I've heard everything from $17 TRILLION and up to $27 TRILLION or more.

What have you read?

It's all Monopoly money . . . and scheduled to become more so, IIRC.

---

Quote: FP123 wrote in post #11

---

Just this morning I heard someone talking about 27 Trillion in 10 years (I bet it will be higher). But always remember that number bantied about in the media (pushing $17T now) is bogus. It never takes into account the unfunded liabilities for the entitlements. Recently Levin has become a John Williams subscriber and has been using material from shadowstats.com. He was reading us an article that was describing the last few years actual annual deficits as being in the $5+ T range if one accounts for the NPV of these liabilities that accrue each year, regardless of whether FedGov's queer accounting methods recognize them!

---

You haven't ruined my day, Frank. I know the history and I have serious issues with Bernanke.

I just object to the obsession and the inability to focus on the PRESENT situation.

Quote: Cedric wrote in post #9

---

In 2009 a Democrat President nominated Bernanke.

Bernanke was confirmed by a Democrat controlled Senate with over twice as many Democrat votes as Republican votes (48-22).

---

Zitat

---

Bernanke then served as chairman of President George W. Bush's Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being re-nominated by President Barack Obama.

---

Whoever controlled congress, Bush would have rolled him up there as the nominee and they would have rubber stamped him. He was Bush's hand picked guy all along.

Quote: musiclady wrote in post #13

---

I just object to the obsession and the inability to focus on the PRESENT situation.

---