What Will Rick Perry’s Remarks About The Fed Mean For Refinancing?

I just saw a new poll putting Rick Perry way ahead in the race for the Republican nomination for president.

I’m a conservative Republican. I’m excited about Rick Perry and it seems I am not the only one. He’s putting energy and focus into the race. I love his blunt remarks about President Obama.

Rick Perry’s blunt approach is welcome to us conservatives who are tired of Republicans In Name Only.

Rick Perry is the most conservative of the people running for the Republican nomination. And he has 11 years of executive experience running Texas, the second biggest state in the union.

The Federal Reserve is like you and me in that they don’t want to be the target for vicious attacks. Until Rick Perry’s remarks today, there’s been a gentleman’s agreement among the leading politicians to leave the Federal Reserve out of political fights.

So what effect will these words have on Federal Reserve policy? This harsh attack is certainly a stimulus for the Fed to moderate its stimulating bond purchases. What tools are left for the Fed if it sees the economy heading into deflation? What can it do without getting attacked for it?

I wonder what type of governors Rick Perry would appoint to the Federal Reserve if he becomes president? I suspect he will choose those who share his anti-inflation, strong dollar views.

Debasing the currency is moral weakness in the view of conservatives such as Rick Perry. I don’t expect to see them embrace it when they govern simply because it is expedient.

With interest rates near zero, what are the incentives to save money? And without savings, there are not many sources for investment.

I’ve been watching CNBC much of the morning. They had on various leading business people who said that the climate is hostile to business right now. Businesses are being prudent and hoarding cash. Until they can see a way ahead clearly to make money from hiring people, they are going to stay in cash and away from employing more people.

Neil Irwin writes for the Washington Post:

Texas Gov. Rick Perry’s broadside against Federal Reserve Chairman Ben Bernanke on Monday night was a remarkable departure from the usual approach of major presidential candidates toward the Fed, which has been to make any criticism delicately and politely.

Perry was neither delicate nor polite. “If this guy prints more money between now and the election, I don’t know what y’all would do to him in Iowa, but we would treat him pretty ugly down in Texas,” Perry said. “Printing more money to play politics at this particular time in American history is almost … treasonous in my opinion.”

I can’t recall the last time a major presidential candidate (Ron Paul does not count) said anything like this about the Federal Reserve.

I go to shul and I run into fringe types who have all sorts of theories about the Federal Reserve and how evil it is, but you don’t get those responses very often from serious presidential candidates.

This has got to spook the Federal Reserve. They will not want to be in the cross-hairs of this presidential election.

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
This entry was posted in mortgage, Politics, Refinance and tagged , , , , , , , , . Bookmark the permalink.