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“Fiscal Prudence Be Damned!” Shouts Federal Reserve Chairman Bernanke

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HolisticSurvival.comIn truth, Federal Reserve chairman, Ben Bernanke, did not actually scream to the high heavens that fiscal prudence should be thrown completely out the window. While he might hold that sentiment dear to his heart, he has enough wherewithal to not speak it directly but rather indicate his feelings to the media only through sideways references and doublespeak. Recent stimulus, buying, and bailout programs can lead us to the conclusion that Helicopter Ben is not only against fiscal prudence but actually in favor of fiscal imprudence.

While we could go to countless examples of the man’s public pronouncements over the course of dozens of interviews, we’d prefer to reference an example of Bernanke’s deep and abiding internal beliefs by analyzing an incident across the pond, in jolly old Europe. It may or may not have passed your awareness that German Central Bank president, Axel Weber, is not in line to be established as the European Central Bank’s president any more. Why not? It seemed like a given. The problem, as expressed by French Finance Minister, Christine LaGarde, lies squarely in Mr. Weber’s belief system, which just so happens to NOT coincide with that of Bernanke.

Weber has made no bones in recent days about expressing his “hawkish” economic views. Specifically he wants to contract Euro-money supply, raise interest rates and force laggardly European economies to reduce the rising deficits they’ve become too comfortable with. Talk like this is anathema to the reigning Federal Reserve boss, who is not so blind as to see that all the things Weber wants to reform regarding the Euro-economy have become facts of life in the United States. Expanding money supply? Check. Extremely low interest rates? Check. Expanding budget deficits? Please don’t make us laugh.

If Weber were to ascend to a position of power within the European Union community, the fact that he and Bernanke would be butting heads immediately and as long as they both shall breathe is assumed. Two more diametrically opposed economic philosophies could not be found. At Holistic Survival, we hate to side with a Euro over an American but, in this case, is it possible to have Weber appointed as Federal Reserve chairman instead of good old Benny?

The Holistic Survival Team


Flickr / INSM