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Thursday, September 13, 2012

Photo of the Day: Ben Bernanke As a Child Preparing for His Future Role as Fed Chair

QE Forever

HT: Moe

37 comments:

  1. I still say that's Bananaking today.

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  2. http://www.econtalk.org/archives/2012/09/barofsky_on_bai.html


    Bernanke's mentioned in this podcast for obvious reasons. Listened to it yesterday and this picture compliments well

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  3. methinks-

    not quite. now he has a helicopter.

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  4. Obama and Bernanke together have spent over $1 million for each new job.

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  5. "not quite. now he has a helicopter."

    Bigger toys for bigger boys.

    Once a money thrower, always a money thrower.

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  6. Peak

    "Obama and Bernanke together have spent over $1 million for each new job."

    Now that's what I call a REAL minimum wage.

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  7. Ron, every worker should be paid a subsistence wage.

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  8. Peak,

    I should be a billionaire. And also 5'10".

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  9. Obama and Bernanke together have spent over $1 million for each new job.

    Isn't this really about their job? Now how much is that?

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  10. Methinks, with enough slaves, you could be a billionaire. And also the slaves can hold you up in the air.

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  11. Hancke says: "Isn't this really about their job? Now how much is that?"

    Yes, and the price of each new job has gone up.

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  12. Well played Jon. I've seen versions of that piece that are...let's say...not PC!

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  13. Methinks, with enough slaves, you could be a billionaire

    the politicians have figured this out. You, on the other hand, still have no idea what the definition of "slave" is.

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  14. JM,

    I think historians have rejected the idea that the pyramids were built by slaves.

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  15. I think historians have rejected the idea that the pyramids were built by slaves.

    They have.

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  16. In a minute Peak will tell you slavery is defined by wage rate.

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  17. The photo of Ben as a child begs a question: if they ever have a ticker tape parade for Ben……….

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  18. Bernanke then served as chairman of President George W. Bush's Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being re-nominated by President Barack Obama.

    Please read and weep all of you conservatives. Do you think Karl Rove would have allowed a Democrat in this position?????

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  19. Carrie,

    All of that is known. Yes, of course he would have allowed a democrat in that position. He couldn't just choose a Republican, that would be too obviously partisan. And what about Bush makes him so different from Obama? Obama is just Bush to the 10th power.

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  20. 9/13/15. The Federal Reserve today announced QE37 saying, "without further easing growth is likely to stay at less than 1%".

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  21. Peak

    "Ron, every worker should be paid a subsistence wage."

    And they are.

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  22. Methinks

    "I should be a billionaire. And also 5'10"."

    I thought you were.

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  23. Peak

    "Methinks, with enough slaves, you could be a billionaire. And also the slaves can hold you up in the air."

    Slaves are too expensive in the US. You would have to live in a really poor country with little capital investment in production goods for slaves to make economic sense.

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  24. Heasley

    "The photo of Ben as a child begs a question: if they ever have a ticker tape parade for Ben………."

    There's a parade planned all right, but I don't think ticker tapes are involved. All I can see from this distance is some black gooey stuff and what appear to be big bags of...ahh...feathers would be my guess.

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  25. Eh, that money doesn't enter the economy, as James Hamilton has pointed out. These QE rounds don't accomplish much, as long as the reserves aren't printed or loaned out, which Bernanke makes sure they aren't. The only thing to worry about is if Ben gets replaced by someone who doesn't understand the risks and starts actually printing the money.

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  26. My stealing this wonderful anime for my campaign blog does not constitute Dr. Perry's endorsement of my candidacy, though if he is a DC voter he may feel free to do so.

    Bruce Majors, Libertarian for Congess

    www.BruceMajorsDC.com

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  27. Sprewell:

    However, doesn't all that liquidity represent a ticking inflation time bomb? What happens when/if the economy picks up and that money starts getting loaned out, etc.?

    I am thinking of the situation the United States faced after WWII. War bond drives aside, the Fed printed a lot of money (The Treasury issued notes, which were bought by banks, which were then bought by the Fed). In the 9150's, we entered periods of growth with (high for the day) high inflation, followed by recession. However, the USA had a growing population and strong demand for our goods and services world wide, which soaked up a lot of that excess liquidity.

    We won't have that this time. So when we do get growth, do we get 1970's levels of inflation? Or will it be worse?

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  28. Mr. Bernanke will be emulated by...

    Europeans throwing euros out of castles and...

    Chinese throwing yuan out of government mansions.

    Quite the papering of terra firma and aqua.

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  29. unknown states - "Bernanke then served as chairman of President George W. Bush's Council of Economic Advisers before President Bush appointed him on February 1, 2006, to be chairman of the United States Federal Reserve. Bernanke was confirmed for a second term as chairman on January 28, 2010, after being re-nominated by President Barack Obama.

    Please read and weep all of you conservatives. Do you think Karl Rove would have allowed a Democrat in this position?????"


    Soooo the Obama administration got to see how the hack performs.... and decided that he was the best choice for a second term????

    Good one. stay unknown.

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  30. WE-

    2 points:

    1. that is not proper use of "begs the question". begging the question is a form of assumptive premise logical fallacy. it does not mean "leads one to want to ask the question".

    http://en.wikipedia.org/wiki/Begging_the_question

    2. for the parade, may i suggest tar and feathers.

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  31. It's not working, Buddy. Spanish bonds are having a tough day.

    can we all say "aaaawe! Too bad so sad."?

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  32. "It's not working, Buddy. Spanish bonds are having a tough day.

    can we all say "aaaawe! Too bad so sad."?


    It will be emulation when the ECB announces monthly purchases of Spanish bonds, but...

    interestingly the Spain's troubles are not being felt in the Basque region because...

    "Its deficit-to-GDP ratio is just 0.25 percent, compared with nearly 90 percent for the central state. It has the lowest unemployment rate in Spain at 13.55 percent, compared with 24.4 percent nationally." and...

    "'If we didn't export, we'd be having a hard time," said Mikel Lezamiz, a director at Mondragon. 'It's thanks to exports that we survive or this whole thing would come crashing down. Survival comes from not depending on a single market, but on a number of markets'." also...

    "The Basque region's secret has been in sticking to manufacturing over the property and tourism industries that ended in economic misery elsewhere in Spain when a real estate bubble fuelled by easy credit burst in 2009."

    Hmmmm

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  33. Hell_Is_Like_Newark, that is the risk, that the Fed will not pull out the money in time when the economy comes back and it will spur inflation. As long as Ben is in charge, I rate that probability very low, because he's not stupid enough to let it happen. However, if Obama or Romney were to replace him with someone not as qualified, all bets are off. The way to look at all the Fed's recent purchases is not as monetary policy, but as fiscal policy. The US govt cannot just buy $1 trillion in MBS, so the Fed has decided to take their place by creating reserves and trying to prop up the housing market. As long as the Fed exits at the right time, by selling back those bonds and securities and sopping up the reserves, this will not affect the money supply. But there will be a lot of pressure on the Fed not to exit even when the economy starts picking up, so it is by no means a guarantee. I just don't think Ben is dumb enough to let it happen, though I do think he's taking too many risks with these QE rounds, for little gain.

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  34. If he had big ears, I would swear it was Bammie. It is nearly sacriligious to make fun of the "Little Rascals". But to poke fun at Bammie and the dungbeetles, no problemo.

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