On Mr. Bernanke’s Confirmation.

I must say, that as much as Ben Bernanke has done wrong, I have a hard time disliking him. Not because I like his policies, or feel bad for him, but because he resembles my dog. That’s right. Ben Bernanke looks like my dog. I said it. if you don’t believe me, look at the pictures.

On the other hand, he has handled this whole economic hiccup rather poorly. I, admittedly, know very little about monetary policy. But the low interest rate policy which Bernanke seems to support wholeheartedly makes me skittish. Money–which in this case refers to M2 money, or all deposits and currency–is plentiful. But banks aren’t lending at a rate that the Fed finds satisfactory. So they’re keeping the Fed funds rate low (0.0 to 0.25%). Unfortunately, this isn’t going to spur the banks to lend more.

This “cheap money” policy is just asking for inflation. This is not some new information, it is an established fact. When there is a greater amount of money in circulation, the money itself is devalued, causing inflation. This next bit, however, is conjecture on my part and may be very wrong.

What I believe Mr. Bernanke is pegging his job on is that this influx of money will spur economic growth, which would reduce or eliminate the effects of inflation. Though some sectors are growing and the new unemployment claims have inconsistently waned in the past few months, there is no substantial proof of recovery. Each promising new statistic, whether it concern new home sales or new jobless claims is quietly revised to be less encouraging.

Bernanke’s plan does not seem to be working. Though we seem to be better off than we were in the first fiscal quarter of 2009, the degree of improvement is unequal to the effort and exception-making policies which have been enacted in its name. I don’t have the answers, but I know that unless the Fed adopts a tighter money policy, my money will be worth less than it already is.

With all of this in mind, I’m going to cast my vote against Mr. Bernanke. In spite of the fact that he reminds me of my dog.

The dog’s fur is patterned after Bernanke’s hair. She has black fur on the sides of her head where Bernanke has hair. She has greyish-white fur around her jaw where Bernanke has his beard. You see?

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2 Responses to “On Mr. Bernanke’s Confirmation.”

  1. political humorist Says:

    I usually don’t post in Blogs. However, your blog forced me to! Awesome job.. Keep it coming! Thanks!

  2. Come Now, Mr. Krugman. Zombies? « Real Right Says:

    […] reserves is effectively greater than the overnight rate, or the Fed Funds Rate. Ben Bernanke (who looks like my dog) has acknowledged this. If the banks had been lending, however, there would be a inestimably high […]

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