Lew Rockwell Pins the Tail on Ben Bernanke and the Rest of Washington's Donkeys!
Welcome to Capital Account. Ben Bernanke was back on the hill today in his second day of testimony before members of Congress for his Semi-Annual Report. He has slowly started to change his tune over the course of recent appearances. It seems as if the same man who claimed with incredible hubris that the Fed could drop money from helicopters if necessary in order to reliquify and reignite the economy is now openly stating that there are limits to what monetary policy can achieve. In fact, he said that too much QE via treasury and agency security purchases could actually hurt the market. When confronted about the Fed's handling of monetary policy and Ron Paul's Audit the Fed bill, Bernanke said it would be his "nightmare scenario" if politicians had the power to overturn or second-guess monetary policy. So what should we make of this? Has Bernanke been humbled by reality, or is he just holding his best hand for last? According to our guest, Lew Rockwell, the Monetary Control Act of 1980 gives the Fed the authority to buy more than just Treasuries and agency debt. We’ll speak with Mr. Rockwell to get his take on things during the show.