# New Fed Chairman Bernanke **URL:** \ **Category:** Great Debates\ **Created:** [October 24, 2005, 6:41pm UTC](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700 "2005-10-24T18:41:53Z")\ **Posts on this page:** 4\ **Page:** 2
**Author:** ![hawthorne](https://avatars.discourse-cdn.com/v4/letter/h/c89c15/32.png) [@hawthorne](https://boards.straightdope.com/u/hawthorne)\ **Post date:** [October 28, 2005, 4:26am UTC](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700/21 "2005-10-28T04:26:45Z")
To respond to **pantom** ’s post: I’m not quite sure where you’re coming from. I understand that there’s some concern about Bernanke’s attitude to the fiscal situation in the US - that’s what my first post in this thread was about. The threat of deflation has gone, so I wouldn’t worry about it. I’d think of what Bernake was saying as “don’t worry about deflation because we have the means to stop it getting out of control. The zero interest rate thing won’t stop us.\*” Moderate inflation, moderate deflation - who cares? It’s harmless. The worry is accelerating inflation or deflation. Expectations take a fair bit of damping down and significant damage is done to people in the process. The great asset that the Fed has is credibility on these matters: if people believe that they will do whatever it takes to maintain price stability, they won’t have to do much at all. Note that he deals with your aside > [@](#): > > it should be noted that they actually did this as regularly as they rose from 1792 through 1920 without, apparently, retarding the growth of the US, since we ended that period as only the largest industrial economy on the planet in footnote one of your link. ---
**Author:** ![China\_Guy](https://avatars.discourse-cdn.com/v4/letter/c/779978/32.png) [@China\_Guy](https://boards.straightdope.com/u/China_Guy)\ **Post date:** [October 28, 2005, 4:35am UTC](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700/22 "2005-10-28T04:35:06Z")
first, i think it goes without say that irrational exuberance Al was waaaay past his sell buy date. i like inflation hawks as started by the volker thread and hope to see more of it. i am personally hoping that politically the fed is looking at the next admin to lead it by the nose rather than the current. challenges not a few what with the deficit, spending like a drunken sailor, petrol prices feeding thru to inflation, and what common sense would tell anyone a property bubble…oh ya, and them dang furiners that are funding the current fratboy party and will really jack up rates or smackdown money supply when they decide not to buy bonds backed by a debasing greenback ---
**Author:** ![pantom](https://avatars.discourse-cdn.com/v4/letter/p/34f0e0/32.png) [@pantom](https://boards.straightdope.com/u/pantom)\ **Post date:** [October 28, 2005, 4:35am UTC](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700/23 "2005-10-28T04:35:17Z")
> [@hawthorne](#): > > Note that he deals with your aside in footnote one of your link. Noted. Not saying he isn’t either intelligent or qualified, merely that there is no evidence that he will be an independent chairman, based on his public statements since that helicopter speech - and of course including that speech. That’s where I’m coming from. I hope my post previous to yours makes that clear. ---
**Author:** ![hawthorne](https://avatars.discourse-cdn.com/v4/letter/h/c89c15/32.png) [@hawthorne](https://boards.straightdope.com/u/hawthorne)\ **Post date:** [October 28, 2005, 4:37am UTC](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700/24 "2005-10-28T04:37:01Z")
I was replying to **pantom** ’s post #16, not #20. But my response is much the same: “I understand that there’s some concern about Bernanke’s attitude to the fiscal situation in the US - that’s what my first post in this thread was about.” To a degree I share your view of Greenspan’s performance. He should have been screaming blue murder about Bush’s fiscal policy. [Previous page](https://boards.straightdope.com/t/new-fed-chairman-bernanke/327700.md?page=1)