Frankly speaking, it is lucky to have the big brain like Bernanke to handle the current Economic situation even though I think that the Fed was under control, almost 100%. As noted, Tight monetary policy will create recession. During 1997-1999, rate cuts helped. If you have millions in savings and want to have secure interest income, higher interest is fine if you are conservative. For super rich, higher interest rate, tight monetary policy ===> Recession == > best case scenario for rich since their value of wealth will increase. Of course, super rich would be in hedge fund shorting. So, super rich will get the astronomical wealth during the downturn.I owe the American public an apology. I entered my office determined to end the legacy of “purposeful obfuscation” (as coined by my predecessor Alan Greenspan) known as Fedspeak or as Greenspeak. However, I did not have the courage to do so.
When I started my term, I was overwhelmed by the way the media portrayed my remarks. Distraught, I sought the advice of Greenspan. He handed me a copy of the manuscript of his book, gave me a wry smile, and told me to “go fuck off”. The message was clear: Continue the tradition of Fedspeak.
I’ve always had a clear monetary policy in my mind, and if I were born a stronger man I would have shared it with you from day 1 on this blog. But alas, I held the status quo of Fedspeak — which has had the opposite effect as I’d intended. The Wall Street Journal has made this clear:
U.S. Federal Reserve Chairman Ben Bernanke, facing criticism that the central bank has sent confusing messages about interest rates in recent months, has decided to speak more forcefully and more often.
America, please forgive this humble economist. While most of you never understood a word of your Econ 101 class, I promise to make monetary policy crystal clear on this blog from now on.
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