Seldom Sunday: Bullard Thinks the Federal Reserve Is God
The Ben Bernanke admitted that he is not god, but James Bullard thinks otherwise:
"The Fed has potent tools at its disposal and is not now, or ever, out of ammunition," Bullard said today in a speech in San Diego. "Should further weakness develop, monetary policy will need to respond appropriately," he said, adding that "sluggish growth" leaves the economy vulnerable to "shocks."
Truth be told, The Ben Bernanke must retire someday, and Mr. Bullard seems to want that Chairman position really bad.
Either way, Bullard is trying to convince gullible investors that the Federal Reserve can waive their magic wands and correct the economy. I disagree (so does Harry Potter) - they don't have magic wands. But why do they need people to believe this nonsense?
In a nutshell, the Federal Reserve is becoming politically unpopular. Therefore, the Federal Reserve needs the media to justify their existence (thank you, Bloomberg). At least Americans obtain their news through the media, so maybe "hopeful" stories like this one will restore American's faith in the Federal Reserve. Plus, it shows that the Federal Reserve has good intentions, and isn't that ultimately what matters1?
Scary Video Alert:
By the way, the irony of this statement, "Very controversial proposal there for Congress to get involved with the Fed." Who does she think created the Fed? Do you think the average American will stop and think about the answer after watching that video, or do you think they'll be convinced that no one should tell the Federal Reserve what to do because they have always existed; pay attention to what's being implied in that video.
Pure propaganda.
1 The road to hell is paved with good intentions." Read the article and notice this paragraph:
The meaning of the phrase is that individuals may do bad things even though they intend the results to be good. An example is the economic policies of the 1920s and 1930s. These were intended to be a prudent response to the economic turmoil following World War I and the Wall Street Crash respectively, but they were one of the causes of the Great Depression and World War II in which millions of people suffered and died.
