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Lame Duck: Bernanke Gets Invisible

Written by Gary North on July 29, 2013

Ben Bernanke will not attend the central bank junket known as the Jackson Hole meeting. Months ago, he claimed that there is a scheduling conflict. This was reported with a straight face by the media.

Bernanke is now a lame duck. I do not expect major policy changes before he departs in February 1. He oversaw TARP. He oversaw the greatest example of crony capitalism in our generation. He did it with academic verbal obscurantism, lots of footnotes, and hyperinflation of the monetary base. That legacy is built into the American economy: “no exit.”

If he can make a quiet departure, and the legacy does not blow up on him, the way it did not blow up on Greenspan, then his strategy will be successful. It will blow up on his successor, the way Greenspan’s legacy bomb blew up on him. He needs at least a year after he departs to transfer ownership to his successor. Greenspan had two years.

The talk now is all about who will succeed him: Janet Yellin or Lawrence “Woman Are Inherently Bad at Science” Summers. The smart money is on Yellin.

Yellin has voted with Bernanke from day one. She is a “known quantity.” She is a good, safe, bread-and-butter Keynesian. She will make no waves.

Summers is notorious for making waves. His gaffe about women — mentioning statistical reality in front of his peers — cost him the presidency of Harvard.

I think the Federal Reserve is happy these days with not making waves. It does not need publicity. It does not need Summers, who is abrasive.

Obama may throw a curve. He may decide to stir the pot. He has the power to do this. He makes the appointment. But he has generally been a team player. The Establishment prefers Yellin.

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4 thoughts on “Lame Duck: Bernanke Gets Invisible

  1. The problem is that a person that buys into Keynesian theory is of questionable intelligence. It doesn't work and has never worked other than as a short term boost to an otherwise healthy economy. That is not us today. The Bernanke Bubble will burst. It must. He created it and he should own it permanently. The only escape he has is to disappear, shave his beard, grow hair, and change his name. See my blog at http://cranky-conservative.blogspot.com

  2. When Bernanke came in in 2006, I thought he was crazy to want to follow Greenspan. Then when he re-upped in 2010, I was astounded. I thought he had a death wish. Now it looks like he just might make it. To paraphrase an old adage: The Fed can stay irrational longer than the US can stay solvent.

  3. Ok, Bernanke is almost for sure leaving at the end of this year. I don't understand why the news media is feeding so much disinformation of what quantitative easing is doing to our country! But, I guess I really do!
    We have to stop printing 85 billion each and every month, but when we do, people will see the truth of this act this administration has been doing since 2009! We have been living in a fantasy world!
    I will say, it will not be very pretty! According to those that know, when this purge of fake money stops, the stock markets will nose dive! They will nose dive drastically and their will be panick in the streets. We have been living in a very big bubble for some time now! When that bubble breaks, God save us!

  4. Pls post stuff about the CAFR

    Also wondering why Ron Paul never talked about the CAFR
    The CAFR Swindle – The Biggest Game In Town http://www.youtube.com/watch?v=1pRPBKJQnyU