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First, in order to avoid bankruptcy, it means future tax rates are going to have to go up. Second, Mr. Bernanke bought a lot of our debt in 2009. That brought down the dollar and hiked the gold price. So, has Washington set us up for major inflation in the years ahead?
That’s why tax rates should be lowered permanently. The Bush tax cuts should be extended. No tax hikes ought to be on the table as the Fed gets moving on what we all know it must do to protect King Dollar and hold down future inflation. We’re facing a key moment for the stock market and the entire U.S....
And then sir, let’s you and I visit with beleaguered Ben Bernanke. Let’s tell him to stop covering up bailout nation. Put all that behind us. Instead, Mr. Bernanke should be defending the value of King Dollar in order to give American families more consumer spending power in their pocketbooks....
Sen. John McCain intends to vote “no” on the Bernanke nomination, saying “I believe that he must be held accountable for many of the decisions that contributed to our financial meltdown.” McCain is dead right. The Fed missed the boat in terms of monetary and regulatory policy. It is time for a c...
And as far as the financial crisis is concerned, I’m still waiting for the commission to investigate the critical role the Greenspan & Bernanke Fed played in creating the bubble that led to the meltdown. As Stanford economist John Taylor has said numerous times on the show, the Fed hel...
Will Federal Reserve vice chairman Donald Kohn replace Ben Bernanke? It’s certainly possible, because Bernanke currently has four Senate holds on his nomination. In other words, there may not be a vote by January 31 when his term as chairman expires.
Was the lack of regulation chiefly to blame for unleashing the housing bubble? Or was it the Fed’s easy-money, low-interest-rate policy? Joining me to discuss this on last night’s Kudlow Report was distinguished Stanford economics professor John Taylor, creator of the Taylor Rule.
For most of this decade, the Fed has been fighting unemployment by pumping in easy money. And it keeps telling us this will not cause inflation. With the CPI hitting nearly 5 percent in 2006 and almost 6 percent in 2008, Bernanke was dead wrong. And the fact remains that more money creation from...
The Fed is fighting the wrong battle. Helicopter Ben Bernanke still believes that deflation is an economic threat. As a result, tomorrow’s FOMC meeting is not likely to produce any shift in the key phrase “extended period,” which has been used by the central bank to signal a continuation of...
The Wall Street Journal editorialized this morning that “the country needs a new Fed chief.” The editors went on to say that while the Fed chair knows how to ease money, there’s no evidence during his tenure as Fed chief (or formerly as Alan Greenspan’s copilot) that he knows how to make mone...
A Bloomberg story last night said the Fed has been talking to government bond dealers about something called “reverse repos,” which simply means the Fed would sell Treasury bills to Wall Street and withdraw cash liquidity from the financial system. But there’s no mention of this exit str...
Fed head Ben Bernanke declared “the recession is very likely over at this point,” adding the phrase “from a technical perspective.” He said this during a question-and-answer session at the Brookings Institution today. Now let’s hope Team Obama doesn’t take over the whole economy.
It’s no surprise that President Obama re-nominated Fed head Ben Bernanke to a second term as chair of the central bank. It was the path of least resistance. Essentially, the president argued that Bernanke was the guy who kept us out of a second Great Depression. Okay, fine. But now we must ask: I...
But this Fed-dictatorship proposal is a terrible idea. The Fed needs to stick to its knitting and focus on stable money. That’s what’s been missing for ten years under Alan Greenspan and Ben Bernanke. That’s why we experienced two nasty recessions. And that’s why the stock market has gone no...
The New York Times ran a front-page story today on personal tensions between Larry Summers and other top Obama economic advisors. Parsing through it, it looks like Austan Goolsbee, who argued against the Chrysler bailout, has the cheekiest relationship with Summers. Christina Romer ta...
Is inflation dead? While Ben Bernanke and most of the economics profession believes that it is, this is largely because of the Phillip’s curve -- which argues a trade-off between unemployment and inflation, or recession and recovery. Since jobs and the economy are falling, and unemploy...