My Understanding of Ben Bernanke And The Taper
The Federal Reserve gets accused of many things. The Chairman of The Federal Reserve, Ben Bernanke gets accused of many things. Is he E-vil? Nope. Is he a Great American? Probably not. So just what is Bernanke doing? My theory of Ben Bernanke’s mysterious objectives goes as follows.
Ben Bernanke is presiding over what he hopes will be the successful retirement of the largest demographic cohort in contemporary America. The Post WWII Baby Boom is far larger than the generation ahead of it (The Silent Generation) or behind it (Generation X). Boomer columnist and political observer Peggy Noonan once described the Baby Boom Generation as “America’s basketball in the python.” This is not their fault, per se, but it does make them pose a challenge to the rest of us as they drift towards the bottom of the actuarial charts. The current $85Bn per month of QE is the periodic glass of Metamucil-Juice prescribed by Dr. Bernanke to help the python pass the basketball.Read More »