{"id":7847,"date":"2015-05-05T06:11:43","date_gmt":"2015-05-05T11:11:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7847"},"modified":"2015-05-05T06:11:43","modified_gmt":"2015-05-05T11:11:43","slug":"blogger-bens-basically-full-of-it","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7847","title":{"rendered":"Blogger Ben\u2019s Basically Full Of It"},"content":{"rendered":"

Blogger Ben\u2019s Basically Full Of It<\/a><\/h3>\n

Ben Bernanke\u2019s skin is as thin, apparently,\u00a0as is his comprehension of honest economics. The emphasis is on the \u201chonest\u201d part because he is a fount of the kind of\u00a0Keynesian drivel that passes for economics in the financially deformed world that the Bernank did so much to bring about.<\/p>\n

Just recall that he first joined the Fed way back on 2002 after an academic career of scribbling historically superficial and\u00a0blatantly misleading monographs about the\u00a01930s. These\u00a0were essentially zeroxed from Milton Friedman\u2019s\u00a0monumental error about the cause of the Great Depression. In a word, Friedman and Bernanke pilloried the Fed for not going on a bond buying spree during 1930-1932 and thereby stopping the shrinkage of money and credit.<\/p>\n

In fact, excess reserves in the banking system soared by 12X during those four years, interest rates were at rock bottom and the US economy was saturated with idle cash. So there was no financial stringency\u2014\u2014not the remotest aspect of a great monetary policy error.<\/p>\n

Instead, what\u00a0actually happened was that the US banking system was massively insolvent after a 12-year credit boom fueled by the Fed\u2019s printing presses. This first great credit bubble\u00a0arose\u00a0initially from the Fed\u2019s maneuvers\u00a0to fund the\u00a0massive war production\u00a0surge of 1915-1919 and then\u00a0from its\u00a0fostering of a\u00a0vast domestic and international credit bubble during\u00a0the Roaring Twenties.<\/p>\n

Alas, none of the Fed governors during the 1930-1932 credit contraction had graced the lecture halls of Princeton. But to nearly a man they knew you can\u2019t push on a string, and that a healthy economy\u00a0requires that busted loans and soured speculations must be\u00a0purged from the financial system in order for\u00a0sustainable growth to resume.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Blogger Ben\u2019s Basically Full Of It Ben Bernanke\u2019s skin is as thin, apparently,\u00a0as is his comprehension of honest economics. The emphasis is on the \u201chonest\u201d part because he is a fount of the kind of\u00a0Keynesian drivel that passes for economics in the financially deformed world that the Bernank did so much to bring about. Just […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[68,5144,175,303,305,383,467,2586,534,536,1226,5183],"class_list":["post-7847","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ben-bernanke","tag-bernanke","tag-credit","tag-fed","tag-federal-reserve","tag-great-depression","tag-keynesian-economics","tag-milton-friedman","tag-monetary-policy","tag-money","tag-reserves","tag-us-banking-system"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7847"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7847\/revisions"}],"predecessor-version":[{"id":7848,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7847\/revisions\/7848"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}