Rick Perry Did A Public Service By Attacking Federal Reserve

A major cause of the housing boom and bust was cheap money. President Bush was a cheap money/weak dollar president and the housing boom and bust was one of the prices we paid for overly low interest rates.

Under President Obama, the U.S. dollar has gotten steadily weaker. Interest rates are near zero.

Rick Perry undoubtedly over-spoke. You should not accuse someone of treachery or treason without having your ducks in a row to show specifically how somebody has met this case. But the Texas governor is right to attack the Federal Reserve, says the WSJ:

The Texas Governor, or one of his advisers, may also have noticed that various economic sages are offering inflation as the solution to America’s debt problem. Harvard economist Kenneth Rogoff has suggested that an annual 4% to 6% rise in the price level over several years would do the trick. Assorted columnists are picking up the theme, and our guess is that the Obama Administration is privately on board. By all means, we need a debate in 2012 over Fed policy.

The U.S. also needs a debate over the Fed’s political independence. In our view, that independence has been compromised over the last 15 years as Messrs. Greenspan and Bernanke allowed themselves to get too close to the White House and Treasury. The Fed’s post-crisis interventions have put the central bank in the middle of decisions about fiscal policy and the allocation of credit. Mr. Bernanke sometimes seems to be a veritable arm of the Treasury, reinforcing its fiscal and regulatory agendas at every opportunity.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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