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-- so Fed Chairman Ben Bernanke says it's not an hour from now we're getting news that comes out of those remarks but most importantly any indication that he might give about how long.
The Fed plans to keep pumping money into the economy -- for our back tells us the Fed chairman's behavior has been alarm winning boat will you go as far as to call him dangerous.
This -- back just like David Stockman did he's director of institutional partnerships.
At the institute for new economic thinking long title yesterday and I -- I a lot of -- that they built this -- -- they did find his.
The policy dangers in anyway.
Well it's dangerous to the extent that I think anything that implements the risks speculation at a time when our -- -- -- suffering from.
Excessive expect elation is a problem so to that extent yeah I think he's being irresponsible and so not the job of the of the a -- reserve chairman to be doctor feel good he says hello -- Sort of articulate a crash like stockman thanks are like come -- well you know look at David -- that's -- another version of fiscal -- I mean if we that's news talk and we we we -- -- in -- in you -- Greek -- levels of prosperity and he did David stopping.
It's a great advocate of -- much greater fiscal austerity in retrenchment and you know I think -- as you pointed utterly with the data that we've -- out there we were or were -- to see the signs of what's happening a week.
Stuck to it -- -- truly.
Cut back on fiscal stimulus retail sales are down.
Be much less -- motives were very poor consumer sentiment is very bad and I think we're we're -- decelerating quite markedly.
And retail sales were down -- large part because gasoline prices for -- but there's not a whole series of that the whole constellation data over the last them -- including the employment data.
Has suggested that there is an economic slowdown coming and I think that's likely to be more coming.
But if you'd think though bit.
-- -- stimulus needs to stay in place by the federal government or even more stimulus put in terms of spending.
-- Federal Reserve has helped the government spend that very Monday -- -- it's been buying.
Well not really any but look at that the Federal Reserve has been engaged in a policy of called quantitative -- and all quantitative easing does.
It's essentially an asset -- on the Fed's balance -- it up in your swapping bonds for bank -- it doesn't really.
Contribute to an increasing aggregate -- spending power in the economy.
And that is the rule -- -- all sit on sand though if you want the federal if you want the -- federal government to keep spending money it needs interest rates to stay where a lot of the federal government is the monopoly supplier of current today that the Fed consent interest rates where they like about the markets the point it's.
That you don't go into surgery by conducting it with tape with a -- we use a scalpel but I think he said the policy was dangerous or -- about something -- slogan I think I would you agree with that premise I I think the policy that the well there's two things look I think mr.
Bernanke wouldn't specifically call -- -- with his.
His denial of a debt bubble I think that was my main -- -- current head of Alfred.
In many respects he's like Alan Greenspan who in the late nineties suggested that there was it we can't -- effectively predict the bubble.
And I think he's wrong about that but I don't actually.
Think the backers say is dangerous having its irresponsible I think that the but I think that the -- in reference to your question that David Stockman -- policy prescriptions are even more dangerous.
But you see what I'm saying though if you're worried about the Fed encouraging risk taking and developing -- That you have to light in part what the Fed has done the causes kept interest rates so low and allowed to do know I don't know continually told spend money -- we -- -- that the Fed.
I would I would be much happier I would be much happier if treasury -- for example.
It's spending on whether whether you do that through to tax cuts.
Or through say direct infrastructure and in direct investment in infrastructure I would be much happy to see.
The trillions of dollars have been spent bailing out zombie banks going to into the pockets of main street Americans.
That's the -- hoped it would like to see you want to look like a public works spending and things like that as opposed to just bond buying or tax or tax cuts have got absolutely no -- right that's exactly what I tax -- -- -- -- -- as well look I mean -- -- we're having -- debate about tax cuts -- government spending.
That's a great kind of debate to have and indeed we could have disagreements about whether it's -- to be done by the government how how do you think this whole thing ends because -- stock -- went right or -- or father was in here yesterday -- 5% 3040% decline of the stock -- real possibility -- anything at all.
He's possible if we continue on this -- the current trajectory of fiscal policy that it's it's it's very possible the wheel of a slow and look -- We're not kidding him any countervailing growth overseas Europe is -- in dismal shape now on China and India appear to be slowing down I think that's one of the that the signals that we're getting from the commodity market.
So and and the US consumer has been -- this into the global.
Consumer of last resort to -- -- -- died on -- than we give a problem.
I you never answered my question but I have an idea but -- like you can have me on again if you want to then he would welcome back.
You want the federal government to spend more money no I don't.
I want you treachery but you guys I let the guy that the government on March well we're spending if they want -- -- -- -- spending where the money don't come from its interest rates were significantly higher if the Fed wasn't doing what it's doing -- -- -- -- it wouldn't deal has been especially if.
If interest rates are significantly high you also have people recipients of the things that are of interest rating and so there is an impaired fiscal channel -- when you have much too low interest rates.
So if it doesn't necessarily plot that's a difference team pistol monitor poll this.
I'm not -- -- saying that there interconnected the calls model the RC has helped the federal government spends much money -- it had the article doesn't.
But I don't think about a dozen of another higher we would still be able to spend the amount of money that we've been spending her and -- -- -- dollar yeah okay.
Absolutely absolutely no had -- This has really -- it almost sounds like you people saying the same thing arguing with each other well I don't I've been Marshall doesn't that you -- -- I -- I don't think works without a difference but now you know and I agree I think there is distinction between fiscal policy and monetary policy you know I don't wanna get into any -- -- I want to -- say that but I understand I think this is the -- -- I'm saying that there interconnected because the Federal Reserve has been taken that step.
A buying our debt well I would respectfully disagree on that that's more -- going to -- It's good went and did you know -- and god bless you for defend we don't -- and take marshals like friends and family members who don't hate our hearts and however it's -- But hey I would have said he captured -- -- and rolled my eyes and long ago we would have been on another subject to it and I've ever be back on the show would you stood up and I think.
-- actually -- it probably way.
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