Saturday, August 26, 2006

I want to be on his team...

Federal Reserve Chairman Ben Bernanke surprised some observers by ignoring interest rates and talking about global trade.
Federal Reserve chairman Ben Bernanke cautioned lawmakers yesterday to avoid the temptation to impose protectionist trade policies as the United States grapples with fierce competition from globalization. [More]
His remarks are in stark contrast to the gloating in some parts of agriculture over the failure of the Doha Round.

I think his remarks are significant. The Fed carries mucho weight with lawmakers, since interest rates could retard growth and worsen deficits enough to prompt actual fiscal restraint.

OK - that may be wishful thinking, but it could happen. All I know is everytime I get into a scuffle with the Fed, they win.

3 comments:

brian said...

John,
Glad to see you back and on a roll. These past few posts have been outstanding.
The Pluto bumper sticker is a classic. I laughed out loud for a long time.
Good to see you posting the video on the site rather than a link. I am beginning to really love the Japanese. Back in the 80's we thought they were going to subdue us and now they are about our best friends in the world. And their pm visited Graceland, for crying out loud. You gotta love it.
Before he's done, Bernanke will make us forget all about Alan whats-his-name. BB is a really good one, reminiscent of Paul Volker. Which of course means that at some point we are going to have to eat our spinach.
And then you go waxing eloquent about marriage. The last line of that post is as good as any written on the subject, which of course is only a few gajillion.
Keep up the good work.

Brian

John Phipps said...

I blush with modesty.

But seriously, brian, you're posting after Happy Hour again, aren't you? Always dangerous that.

Thanks for reading my work - all youse guys. I'll try to keep my perspective looking up more often.

Actually, I had forgotten what being relaxed felt like until I took a vacation.

I think I like it.

1029barn said...

John:

I appreciate your bringing up this subject. It is very important in a globalizing world and shows that the Fed has more important things to do than tweak the interest rate.

It is critical that our currency maintain a good value in the world. Many countries depend on the U.S. for a reserve currency, which doesn't change in value in large swings.