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.
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
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.
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.