The Other McCain

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Next Month: Bernanke Forms Monetary Insolvency Life-support Fund (MILF).
Ron Paul’s Jaw Injured By Floor Impact

Posted on | November 22, 2011 | 10 Comments

by Smitty

The actual title of the notional organization, mentioned at The Enterprise Blog is Global Liquidity Facility (GLF).

And with the European Central Bank about to reprise the role of the Fed in the 1930s, economic analyst Ed Yardeni thinks Bernanke may well ride to the rescue of the eurozone and the global economy:

Given the ECB’s reluctance to act, I suspect that the Fed will spearhead the formation of a Global Liquidity Facility (GLF) to avert a global financial meltdown. Fed Chairman Ben Bernanke demonstrated that he is a master at putting together such emergency measures back in 2008. In effect, it would act as the world’s central bank. Mr. Bernanke is clearly very worried about the prospect that the European sovereign debt crisis is a contagion that could spread to the US, as evidenced by his bizarre town hall meeting with troops returning from Iraq on November 10. The GLF would receive deposits from the Fed and other participating central banks, including the ECB. The funds would be used to buy the bonds of debt-challenged governments that would be required to accept strict supervision of their fiscal and regulatory policies by the IMF.
You might be thinking that I’ve gone mad. Actually, I’m simply predicting the behavior of our wild and crazy Fed officials. Last Wednesday, Boston Fed President Eric Rosengren noted that the Fed and the ECB worked together during the 2008 global market meltdown, and “if there was a (new) crisis I would expect that there would be some coordinated activities (again). We would want to make sure … that people have access to short-term credit markets.” He added, “We’re not at that point right now, but there are clearly stresses in short-term credit markets.” He said, “We’re watching that very closely, and if it becomes appropriate for us to take more actions to try to relieve that, I fully assume that we would do something.” Mr. Rosengren isn’t on the FOMC, but he is one of Mr. Bernanke’s most supportive colleagues.

There would certainly be a firestorm in Congress, but Bernanke is unlikely to seek (or if he did, get) another term anyway.

I am still working hard, trying to envision how any candidate for POTUS can argue that the crap undertaken by the Federal Reserve is even remotely in keeping with the spirit of the Constitution.

Watching the worldwide slouch toward financial ruin just oozes the sense of the #Occupy movement. Except that at least the #Occupiers are not claiming any sort of superiority, or condescendingly making idiotic decisions with Other Peoples’ Money. And when the #Occupiers want to off themselves, they do it expediently with a drug overdose, and not some lingering totentanz.

End the Fed. Before the Fed ends us.

Category: End The Fed

Comments

10 Responses to “Next Month: Bernanke Forms Monetary Insolvency Life-support Fund (MILF).
Ron Paul’s Jaw Injured By Floor Impact”

  1. Bushwackca
    November 22nd, 2011 @ 5:50 pm

    funniest damn headline ever… on a serious subject no less… well done.

  2. Anonymous
    November 22nd, 2011 @ 5:51 pm

    Oh, I don’t think the firestorm would be restricted to Congress.

  3. smitty
    November 22nd, 2011 @ 6:18 pm

    I don’t know about _ever_, but I thought it a funny headline.

  4. Anonymous
    November 22nd, 2011 @ 7:14 pm

    Obviously Bernanke has succumbed to some megalomaniacal fantasy.   While it is true the Eurozone meltdown will have repercussions for us, it is also fruitless to attempt to bail them out, too.  One of the French ministers pointed out the other day that the United States’ debt problem is greater than Europe’s.  That should tell everyone we need to get our own house in order first.

    Not to mention:  we don’t have the money, Sonny!

    But our current government is dysfunctional under the incompetent Obama, and we don’t clamor to “End the Constitution,” do we?

    “Ending the Fed” is halfwit Paulbot nonsense.  Someone must control the currency.  WHO will do it without the FRB?  Congress?  Treasury?  That’s hilarious.

  5. Jorge Emilio Emrys Landivar
    November 22nd, 2011 @ 7:48 pm

    Well the constitution says congress should.

    I personally believe in free market currencies though.
    I suggest you go to George Selgin’s blog and read up about free banking.
    Here’s a video of a lecture of George’s.
    http://www.youtube.com/watch?v=5P7W1G1hbiQ

  6. Anonymous
    November 22nd, 2011 @ 7:48 pm

    Eeek!

  7. smitty
    November 22nd, 2011 @ 8:02 pm

    Are you saying Sowell is a Paulbot?–>”Ending the Fed” is halfwit Paulbot nonsense?

  8. JeffS
    November 22nd, 2011 @ 10:38 pm

    Ron Paul has decent points in his political philosophy.  His real problem is that said decent points are the exception, not the standard.  The uncharitable might say “rare exception”.

    In the case of ending the Fed, Paul has a good case.  Federal control of the money supply tends to be a positive feedback that, more often than not, oscillates out of control.  Especially when the control is applied for political reasons disguised as economic reasons. 

  9. Danby
    November 23rd, 2011 @ 12:35 am

     Under black-letter US law, the law setting up the Fed in the first place, it is only able to purchase bonds “backed by the full faith and credit of the United States of America.” In other words, the Fed is only allowed to purchase US Treasury bonds.

    But during the real-estate meltdown, and since, the Fed has been purchasing mortgage funds and derivatives, and son-one has called them on it, so I guess buying Greek bonds is okay too. I mean, it’s not like they won’t be paid off, right?

  10. Danby
    November 23rd, 2011 @ 12:36 am

    “and son-one” should have been “and no-one”