Bernanke: Wants to Keep Spending Despite History

No Questions Bernanke

In his position as Fed Chairman, he is supposed to be neutral – not choosing one party over the other. Is he doing that? Why is he saying that cutting spending would be dangerous to our economy? That is the Democratic company line and IT IS NOT WORKING. If cutting taxes and spending do not work, why did it stimulate the economy during the Reagan and Clinton years? His neutrality does not appear evident to me. How about you?

This is an interesting article from Barron’s worth a few minutes of your time.”…Given the opportunity, I would have asked Bernanke to elaborate on why he has been reciting from the book of Obama, rather than, say, spouting the Tea Party line regarding deficit reduction. Is he breaking with Fed tradition and becoming a partisan?

The chairman has been mixing it up with the GOP, and I haven’t been the sole person who has noticed. “Bernanke has sacrificed much independence by becoming an administration participant,” opines Fed expert Allan Meltzer of Carnegie Mellon University in an e-mail.

During the June 22 press conference, Bernanke told reporters that he favored a debt reduction over 10 or more years, and that drastic cuts up front might be inimical to the recovery. The GOP favors big upfront cuts and larger reductions within 10 years. Obama favors cuts over 12 years.

In a speech on June 14 to budget experts, Bernanke criticized the GOP’s taking debt-ceiling legislation hostage to force President Obama to institute fiscal reforms. Said the Fed boss: “I fully understand the desire to use the debt-limit deadline to force some necessary and difficult fiscal-policy adjustments, but the debt limit is the wrong tool for that important job.”

At the time, Republicans and Democrats were still trying to negotiate a deficit deal. The talks broke down last Thursday…” Read here: The Bernanke playing politics

Bernake’s press conference disallowed questions as he talked about the gloomier picture facing our economy. He spoke about no new steps to boost jobs and growth (maybe because the stimulus and QE’s didn’t work?). Cutting corporate taxes and regulations would work. Read here: Bernanke’s press conference – no questions allowed