Falling T-Bond Threatens Illusion of Fed Control
Wednesday, 8 December 2010
Helicopter Ben said so many dumbfounding things the other night on 60 Minutes that we wouldn’t know where to begin if we were to go after him. His ostensible interviewer, Scott Pelley, was clearly out of his depth, so it looks like we’ll have to wait until Bernanke faces Rep. Ron Paul on Capitol Hill before we get a clearer picture of the issues the Fed chairman would have us believe he is managing. During the CBS segment that aired Sunday night, the Fed chief denied printing money, but Pelley failed to press him on this whopping technicality. Bernanke also said he could throttle inflation in an instant if it becomes necessary. That absurdity, too, sailed right over Pelley’s head – either that, or he simply didn’t care about the economy-killing implications of the banker’s implied “solution” – i.e., higher interest rates.