The title roughly translated: For whose benefit, Quantitative Easing # 4?
Incessant babbler Erin Burnett, host of CNN’s “Outfront,” is as thick as a brick. She directs the conversation concerning Ben Bernanke’s easy money monetary policies to whether history will prove Big Ben right; to outcome-based morality; to pure utilitarianism.
Burnett begins with the assumption that “Ben Bernanke’s Fed has injected [a mere] $2.3 trillion into our economy.” Actually, “$7.77 Trillion: That’s the amount of money the central bank, chaired by Ben S. Bernanke, ‘parceled out’ during ‘the bailout to America’s ‘Big Six,’ which, surely, also served to inflate the money supply by “inflating” America’s fascistic banking system.
…that $2.3 trillion has worked and he said this is why. It has created two million private sector jobs. Those jobs created as a direct result of his easy money. Well, that’s pretty interesting because that’s an interesting link between jobs and how much he spent because that is not a cheap cost per job. In fact, it is more than a cool million dollars per job, $1.2 million to be exact. So let’s just repeat that because it did take a second to digest it. That’s $1.2 million per job. So for those who are keeping track, we are not counting the president’s extra two trillion or so dollars in stimulus in that money, just the Fed’s money divided by the number of jobs. … History, though, may prove Ben Bernanke is completely right.
I’m not so sure that’s such a good bargain. I’m not so sure. I’m not as rosy as you are about his performance, Ben Bernanke and the Fed’s performance. …
Is that an argument?
UPDATE (9/1): THE TOOLS @ THE FED. From National Journal’s economics desk comes the same nonchalance about the “tools” at the Fed’s disposal. Like the blabbering Burnett, the correspondent has not been put on earth to question the ethicacy of interest-rate manipulation and quantitative easing. She does, at least, provide some useful definitions of … the TOOLS:
With short-term interest rates at or near zero, the Fed has turned to unconventional means, such as purchases of government debt securities known as “quantitative easing” or QE. Many economists think the Fed could well undertake a third round of bond buying—QE3—by the end of the year. Some see a possibility of action at the next Fed meeting, but other economists say the Fed might be more likely to wait.