Tomorrow may be a truly special day in the history of our country’s financial hierarchy. The normally secretive institution known as the Federal Reserve led by current chair Ben Bernanke will host a live press conference shortly after the Fed Board of Governors exits from its regularly scheduled meeting addressing our nation’s economy and the Fed’s current monetary policy.
Will Bernanke surprise the markets and announce a continuation of the Fed’s asset bubbling, commodity inflating policy known formally as quantitative easing? Did somebody in the markets today know something about the Fed’s stance? Did anybody else find it particularly interesting that both stocks and bonds rallied big today?
While market participants anxiously await Bernanke’s words of wisdom, I actually think the better “Fed-show” may have been delivered today by Robert Auerbach. Who is Robert Auerbach?
Robert Auerbach was an economist with the House banking committee during the tenure of four Federal Reserve Chairmen: Arthur Burns, William Miller, Paul Volcker, and Alan Greenspan. Auerbach also served as an economist in the U.S. Treasury’s Office of Domestic Monetary Affairs during the first year of the Ronald Reagan administration and as a financial economist with the U.S. Federal Reserve System. He is currently a professor of public affairs at the University of Texas.
What did Auerbach have to say? As a few appetizers, take a taste of these Auerbach spicy morsels delivered during a Bloomberg interview this afternoon:
“Bernanke won’t make any news because he’s got himself in a very deep hole.”
“There’s a fight inside the Fed to keep QE2 going. I think it’s a very, very bad policy.”
“The bankers love what’s going on.”
What longtime Fed critic Henry “Gonzalez would like most is for the Fed to stop their very corrupt and deceptive policy for records…that kind of corruption is still going on.”
WOW!!! Auerbach cements his place in the Sense on Cents Hall of Fame with that jalapeno!! Don’t worry, there’s more where this came from.
“Congress has to impose some regulation on the Fed for maintaining their records.”
The Fed “minutes are mostly incorrect. They do not have any attribution as to who is saying what.”
“We don’t know what the people at the Fed are saying.”
Is your appetite sufficiently teased? Are you hungry for the full serving of what Auerbach has to say?
How can we quickly get Robert Auerbach some press credentials and have him question Bernanke tomorrow on behalf of all American taxpayers and citizens who cherish the virtues of truth, transparency, and integrity? He can represent Sense on Cents!!
You may be currently dismayed by the Fed’s policy to redistribute your savings to our banking system but you will not be disappointed by the posture taken by Robert Auerbach. I strongly encourage you to watch this full 7-minute clip including the last minute quote by the Seattle Times’ economics columnist Jon Talton.