Who (or what) is the entity inhabiting the body of Ben Bernanke? This Ben Bernanke is a lackey of the administration in power. Taking the lead of his predecessor Alan Greenspan, Bernanke accommodated Bush spending and is now Obama's lackey. Instead of the Fed being the independent monetary policy body envisioned by its founders and codified in the Federal Reserve Act, one would be hard pressed to differentiate between this Fed and a central bank that is an adjunct of the Treasury. The latest example is Bernanke going before Joe Biden's committee for a responsible federal budget. Who is the wag that thought up that name? Just like with most things named in Washington - like legislation - the name has no bearing at all with reality. At his testimony Bernanke did not talk about the irresponsibility of Fed policy but rather supported Treasury's Geithner lie by saying that congress should raise the debt ceiling in order to preserve America's creditworthiness. Certainly he didn't say this with a straight face because he knows it is a lie and assumes that we all are fools. First, as I have pointed out before, not raising the debt ceiling will have no impact on the ability of the US to repay its debts. Revenues are sufficient to do that. Not raising the debt ceiling will simply limit the amount of new spending that the government can conduct. Thus Bernanke is assuming that the congress is made up of a bunch of fools. Actually, he may be right on that score. Second, Bernanke (or the Bernanke body double) is assuming that the rest of the world are fools. The damage to the dollar that the Fed under Greenspan and Bernanke in monetizing the debt is the culprit. Yet this Bernanke look alike says not raising the debt ceiling will "create fundamental doubts about the creditworthiness of the United States, and damage the special role of the dollar and Treasury securities in global markets in the long term." But this Ben-like-person, has already done this along with the rest of the Open Market Committee. Raising or not raising the debt ceiling will have no effect at all on creditworthiness. Eve if the debt ceiling were raised, why should the world keep buying American debt if the dollar keeps being devalued by Fed policy? Who would do this? A fool.
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com