Saturday, May 5, 2012

Don Luskin: Bernanke knuckling under to the Fed's Big Sis?

We have long been great fans of Don Luskin at Trendmacro, one of the sharpest analysts not only of the markets but most importantly of important national and international political and financial issues.

He has just posted a new video of his appearance on Larry Kudlow's show on May 5.

Fed Chairman Ben Bernanke hired uber-liberal economist Paul Krugman at Princeton. Krugman is demanding a third round of "stimulus" to reinflate to bring down unemployment which Bernanke thinks is "reckless."  Luskin has devoted an entire chapter of his book I Am John Galt to Krugman. You can see our review here.

Luskin says, basically, let's not deceive ourselves and asserts that Bernanke is weaker politically today than he has ever been.

"He is not in charge of this show. There are other people in the aristocracy of the Board of Governors who really are controlling policy.  Bernanke, while he is generally dovish, is the least dovish of them.  There are ultra-doves out there who are in political control. They are Janet Yellen, and they are William Dudley.
If it weren't for Bernanke holding them back as best he could in his weakened position we would habe already six months ago had a trillion dollars in unsterilized QE.
Janet Yellin is a Democrat. She's an interventionist. She's a Big Government girl. And you know what Big Government is about - if it doesn't work the first time, try it again bigger.
So she's now got two excuses in a row, two lousy job reports in a row. I guarantee you that Janet Yellin and Ben Bernanke are on the phone right now and that Janet Yellin is doing all the talking. 

So basically to put people back to work Yellen and Obama want to impoverish them through inflation, which they are going  to do anyway to pay off massive amounts of debt totalling if I recall correctly something on the magnitude of 900% of GDP.

No matter to the well-heeled political elites. Inflation is for the little people. Like the Millennial Generation who will be paying for the sins of Baby Boomers for the next quarter of a century.

 OBEY !!!

No comments:

Post a Comment