Ben Bernanke’s Blog

Paul Volcker is an enemy of the US economy

By Ben Bernanke

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First Greenspan criticizes my efforts to clean up the subprime mess of an economy he left me, and now former Fed Chair Paul Volcker has accused me of operating at "the very edge" of my legal authority. If rescuing Bear Stearns (and therefore the economy in general) is pushing my authority, then I don't want to be an authority-following quasi-governmental non-elected executive officer.

Paul's very bitter because the president who appointed him (Jimmy Carter) couldn't farm his own peanut, much less expand his legal authority. If there's one thing President Bush taught me (and there is only one thing he taught me), it's that a federal executive has the authority to expand his own authority. My charter was clearly to save the economy through any means necessary.

I hereby declare Paul Volcker an enemy combatant to the economy of the United States of America and issue a warrant for his arrest. We're in the process of building our first Federal Reserve Prison. He will be tried, and if necessary executed, in private so as not to cause any disruptions to the markets.

4/9/2008 2:43 PM, Washington, DC
6 comments

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Comments

PJ:

Ok Bernanke can officially be called a freak now.

4/9/2008 7:10 PM

General Petraeus:

It only goes to show the perils of trying to set goals. Had you simply said that we recognize that things are tough but that's exactly why we need to keep on doing exactly what we've been doing and we'll know the economy is doing better when we see it, you could go drink piña colada on some tropical beach and let things unfold on their own. Which, if you work for GW, is about the best course of action anyway. The guy is cursed. Look at me, nice trim and tanned, having a pretty good time and ready to sign for the book rights. You should do the same. Unless of course you foolishly go try to fix things only to hear the dreaded "good job, Bernie!"

4/12/2008 1:10 PM

Dennis Kucinich:

Since the bank JP Morgan-Chase is one of the banks which make up the Fed, in "selling" Bear-Sterns to JP Morgan-Chase (at a well below market interest rate) isn't Bernanke simply the Fed "selling" to the Fed and the Fed giving itself a killer low rate? I really don't see how this could be legal; in fact, in an economy where businesses large and small are allowed to fail (so as to follow the free market paradigm) why is it that when old money big businesses (the airlines, the banks) get into financial trouble they are bailed out by the government at the insistence of the Fed? Such a deal! It's like being a lawyer, even if you lose you get paid! The bottom line is, this CANNOT BE ALLOWED IN A FREE MARKET ECONOMY. Otherwise not only do you have fiat (worthless) money, you make it obvious to the rest of the world that you have a fiat economy as well. Hence the economic problem(s) we have now in the U.S. God help us... COUNT ON WAR with Iran (or Syria, or???) to boost the "defense" industry and therefore the economy, but that didn't work with Iraq, did it?!

4/15/2008 1:04 PM

Ben Bernanke:

Dear Dennis:

It's good to be the banker. Didn't your mother teach you that while playing Monopoly?

It's almost as good to be President, but you'll most likely never know that sensation.

4/15/2008 6:53 PM

Samuel L. Jackson:

"The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you."

4/17/2008 9:25 PM

Mel Gibson:

I'm not going to say who I think's reponsible for this, nope. But it's not Ben Bernanke, and it's not Greenspan. Begins with a J...

And I'm not talking about Jesus.

4/21/2008 6:24 PM

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