An Offer We Can’t Refuse: The Federal Reserve Chairman Reminds Treasury Who’s Boss!

 

Here is a Fairy Tale about the Economic State of America followed by the moral of the story. 

In these times of cooperation and mutual love and respect, dare I say unbridled affection, the Department of the Treasury and the Global Banking Cartel that owns our country: (known as the “Federal Reserve Board”) the line blurring what belongs to the controlling super banks (the Fed) and the US taxpayer has blurred so as to be indistinguishable?  It’s as if the superrich, who own the international banking system, and the US government who is blithely stimulating the economy with borrowed money, have joined forces to both bankrupt us and break our currency at the same time.  Heartwarming isn’t it? 

It’s as if the Fed and the US Treasury Department had fallen in love and were in the habit of tucking each other into bed at night with a lingering kiss and a sigh of contentment, glorious unity and harmony between our guardian of tax dollars and the controllers of our currency and the outright lords of international finance.  It’s a love story for the ages: Helicopter Ben Bernanke is our Daddy and Timmy Geithner is our devoted but ditsy Mommy (who sometimes forgets to pay his taxes) but who’s love for Daddy Ben gives us a warm feeling of contentment and security.

But then a snake entered the unholy paradise of the money kingdom and Mommy Geitherner and Daddy Ben began to look at each other strangely each night before falling gently into untroubled sleep and dreams of avarice.

“Ben” Mr. Giethner would say.  “I’m not just Mrs. Benjamin Bernankey but I have an important role in this marriage too.  I’m not just an object of money and signer of promissory notes but the guardian of our nation’s purity and strength.” 

Daddy Ben looked at the Missus with bemusement and affection smiling his enigmatic smile that once so beguiled the young Secretary of the Treasury.  “Don’t you worry your poor little head my dear because as always: Daddy Ben knows best!” Bernankey chuckled, not unlike a serial killer, “On the other hand perhaps we should clear up some of the expectations you need to conform to.  Not just you but Uncle Barak and all those silly people in congress.”  Bernanke chuckled again his eyes becoming cold and reptilian.

“Now Ben….” Giethner said with a small yet hysterical laugh

“Sign this one page division of duties that we may be ever united in our marriage of convenience and combat this financial crisis I caused”. Bernanke intoned in a meanasing whisper that was most unpleasant.

“What does it say” Geithener said nervously.

“You Question me!” Bernanke bellowed as all living parlor left his face.  “You dare question me?  It says you won’t question me ever again in any meaningful way and that I don’t answer to you and that while we’re married, as far as your concerned, I retain my bachelor status.  I decide what needs to be done and you do it.”  Bernanke eyes lit with an unearthly green light.  “It’s a match made in heaven, my dear.”

“Ben, you frighten me when you say things like; you retain your total independence while retaining absolute control over the money.  It makes me think you don’t love me anymore.” Githner looked as young and cute as he could when he said this but his paramour, Helicopter Ben Bernanke, continued to morph into an otherworldly monstrous apparition.  Geithner automatically reached for a pen and signed without reading the document; by now it was habit.

“Very good” the ghoulish Fed Chairman intoned as he handed Geithner a shiny gold credit card.  “Here, go play with this and buy yourself something pretty to stimulate the economy”, the Wiley Banker snickered in spite of himself.  “Spend on and don’t worry: be happy, my dear”.

“Oh good.  I so wanted to go shopping and give ACORN some billions today!”  Geithner uncharacteristically hesitated.  “Are you sure it’s ok for me to go shopping again?  I was thinking of building a space needle in downtown Truth or Consequences New Mexico….. But if we don’t have the money….”

Helicopter Ben roared with laughter once again morphing into the bald prince charming we’ve all come to love.  “Silly goose!” he snickered while tweaking Geithners nose.  “I decide when the spending is over!” 

They both laughed with relief and sheer joy that their spat was over.  And if Geithner wondered if Ben was good for the money; he didn’t show it.  And if Ben wondered if Geithner would ever grow a brain; he didn’t show it either.

Here are some possible morals for our story:  Never take financial advice from someone who thinks you can throw money out of a helicopter to stimulate the economy.

Or perhaps its that a central bank is more dangerous to our liberty than a standing army. 

Or perhaps its that we should always spend less than we make and force the government to do likewise.

Now consider this story below and ask yourself if the day is coming when the interests of the nefarious Federal Reserve and the crack addict spending of the US Treasury Department diverge regarding spending?  Does this portend the eventual pulling of the Rug out from under Geithner and Obama?  Time will tell. I got this Article from Bloomberg and here’s the URL for the whole article:

http://www.bloomberg.com/apps/news?pid=20601087&sid=abuPwlNJSeis&refer=home

 

Bernanke Seeks to Avert Pressures on Fed After Crisis (Update1)

 

 

By Craig Torres

on March 23, on a day dominated by release of the Obama administration’s plan to save the banking system and the fourth-best day in postwar Wall Street history, the U.S. Treasury and Federal Reserve released a one-page joint statement on the division of economic responsibilities between the two agencies.

Amid the flurry of news, the statement passed with little public attention; neither the New York Times nor Wall Street Journal printed articles about it the next day. The release said that while the Fed collaborates with other agencies to preserve financial stability, it alone is in charge of keeping consumer prices stable, its independence “critical.”

The statement was the culmination of a behind-the-scenes, two-month long debate involving the Fed’s Open Market Committee, as well as the Treasury. The discussions were driven by Chairman Ben S. Bernanke’s concern that work with the Bush and Obama administrations on repairing banks and markets not lead to attempts at political pressure later that would delay the start of measures to combat inflation.

“This is all about independence,” said Laurence Meyer, vice chairman of Macroeconomic Advisers LLC in Washington and a former Fed governor. “Even though the Fed is cozying up to the Treasury, it is important to know that the Fed would maintain some stability over monetary policy.”

1951 Agreement

JPMorgan Chase & Co. analyst and former Fed economist Michael Feroli called the statement “The 2009 Treasury-Fed Accord,” harkening back to a joint announcement by the agencies in March 1951 that freed the central bank from pegging government-bond rates.

Fueling the debate is the concern that policy makers will have a tough time if they try to end their emergency-lending programs as soon as next year while the unemployment rate, currently a quarter-century high 8.1 percent, remains at elevated levels.

The risk is that, on the one hand, lawmakers and even some administration officials might balk at what they would see as premature steps, and on the other hand that any hesitation on the Fed’s part could spark inflation.

“If we have a slow recovery, which seems likely, who is going to watch them raise interest rates as the Treasury sells this mountain of debt” stemming from fiscal deficits, Allan Meltzer, author of “A History of the Federal Reserve,” said in a Bloomberg Television interview. Politicians “are not going to let them do that, they are not going to want them to do that.”

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One response to “An Offer We Can’t Refuse: The Federal Reserve Chairman Reminds Treasury Who’s Boss!

  1. This blog’s great!! Thanks :).

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