I tried to watch Ben Bernanke's
question-and-answer appearance before the Senate
Banking Committee, but there was Christopher Dodd,
chairman of that committee, who is the guy I
accuse of being directly responsible for the
entire economic mess we are in, as the economic
mess we are in is the same kind of economic mess
that happens every damned time the banks are
allowed to act irresponsibly, and this preening
Congressional-doofus was in charge of questioning
the head of the Federal Reserve to keep the banks
from acting crazy and keeping greedy, corrupt,
lying bankers in line. But he blew it, big time,
and I shall never forgive Connecticut for electing
this bozo.
Almost right off the bat,
Bernanke implied that Milton Friedman was wrong,
and that the whole monetarist school of economics
was wrong when they said that "inflation in prices
is always and
everywhere a monetary phenomenon" -
which is exactly, exactly right. Instead, Ben
"Butthead" Bernanke says that inflation is caused,
not by irresponsible over-creation of money and
credit, but by rising commodity prices, especially
the rising price of oil! Hahaha! What an idiot!
And ol' Butthead says he is on the lookout
for signs that the rising costs that producers of
goods and services must pay are not filtering
through to retail prices, and if he ever sees any
inflation, he will take "action"! Hahaha! I can't
believe I am hearing this! Hahaha!
This
Bernanke dim bulb, who apparently knows nothing
about economics at all, was the chairman of the
economics department of Princeton (which doesn't
say much for Princeton University), and is
apparently unaware that Milton Friedman was right;
the rise in retail prices is caused by a prior
rise in the money supply, which is caused by the
Federal Reserve creating excessive amounts of
money and credit. High prices, therefore, are the
RESULT of the ridiculous excesses of the Federal
Reserve, not the cause.
And the proof is
simplicity itself; if there is a static supply of
money, then the only way for increased sales of
one item (thus bidding up the price) to occur is
if there are decreased sales of other items
(dropping the price), so that aggregate inflation
is zero.
But with the money supply growing
at over 15% a year in the US and as bad, or worse,
almost everywhere else in the freaking world,
Bernanke is thus a complete idiot when he then (as
I recall) said something like, "I fully expect a
return to strong growth and falling inflation over
the next few years ahead." Hahahaha!
And
nobody on the committee asked the one question
that was burning a hole in the brains of Mister,
Miz and Missus America, namely, "Why do you
believe that?" And what is more, how in the hell
can anybody be so stupid as to think something so
asinine that it makes me laugh so hard that my
stomach hurts and makes me grind my teeth in
outrage so hard that sparks actually fly out of my
mouth from the friction?
Since nobody
asked that question, it was a delicious moment
when he then finished saying that remarkable
statement and then cast his eyes down; it was then
I knew that he knew that I was out here watching
him, and he knows that I know that he knows that I
am watching him, and now he knows that I know that
he has exposed himself as the lying piece of
neo-Keynesian econometric clap-trap that I figured
he was, which means that he will, again, be the
lead-in story in tonight's Mogambo Inter-Galactic
News (MIGN) broadcast, with the headline "Ben
Bernanke: Lying piece of neo-Keynesian econometric
trash, or something worse?"
I think you
know how I will finish that particular editorial
rant!
Richard Daughty
is general partner and COO for Smith Consultant
Group, serving the financial and medical
communities, and the editor of The Mogambo Guru
economic newsletter - an avocational exercise to
heap disrespect on those who desperately deserve
it.
Republished with permission from
The Daily
Reckoning .
Copyright 2008, The Daily
Reckoning.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
