Aug

29

Not to say anything that I don't know anything about. But you have to hand it to Perry. He forced Bernanke to not go with an overt QE3. And that has to be very bullish as how many resources can they take from the little man and give to their former, current or future friends, employees, bosses, wives, and relatives.

A Proverbialist writes: 

There is no modern era precedent for the Fed facing credible political opposition from within the established governing elite framework. Perry's statement had to be a game-changer for Bernanke and the Fed, as it opened an entire new attack vector on the institution's legitimacy, which is its sole true power base.

For now, I assume the threat is not being evaluated formally, generating a paper trail.

But it's a damn good bet that after the first bourbon-and-branch of the afternoon, Bernanke's inner circle wargames this.

 


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  1. Alec Misra on August 30, 2011 3:13 am

    Personally I was appalled by what Rick Perry had to say and the tone he chose to use. I suspect his sole motivation was to undermine any benefit further easing would have for the Obama campaign. This is irresponsibility of the highest order. Particularly as the real root of the crisis continues to lie in congress with the likes of Mr Perry. I have posted a lot on the political situation in the US, hopefully some of it non-trivial in nature. But as to why further easing is probably a benefit please see my blog:

    http://sicsemperliberalis.wordpress.com/2011/08/11/is-it-time-for-qe3/

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