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|Subject: Re: Racist Parade Float?||Date: 7/10/2013 1:41 PM|
|Author: CCinOC||Number: 688498 of 864510|
The liberal response to being caught in a lie is to lie more, and faster. They hope that some of the BS will stick. For LIV's, it actually works some of the time.
Rick Santelli on how easy it is to lob one right over the heads of most Americans.
RS: I'd like to welcome a very special guest. I love wednesdays and I love reading Holman Jenkins Jr.'s column in the Journal every Wednesday. Thanks for taking the time to be our guest.
HJ: My pleasure. Great to be with you.
RS: Thelma and Louise, taking that last shot, boom. Are the biggest economies of the world delusional, Holman? Are they looking at the fact that whether it's Japan, Europe, U.S., to the lesser extent China, thinking that if they use the market and interest rates as little toys to fix things or make things better, if they fail nobody can take our place. That seems to be the logic I see. How do you see it?
HJ: Yeah, I see it the same way. Governments everywhere have accumulated 50 years of excesses, high taxes, high regulation, retirement and medical systems. They can't sustain themselves, and they know they've got to fix this problem, but instead the last -- since the crisis, basically they are relying on central bank to somehow patch things over by printing money, and it's not working. I don't think that people fail to understand what needs to be done but the political cost of doing it for any given politician at any given moment is too high, so let's just hand it off to Ben Bernanke, he'll take care of things for a while by printing some bucks.
RS: Bernanke, of course, is not only going to give the speech later on today, the minutes of the last Fed meeting come out, Holman. You now, listen...Princeton professor, super smart guys, but in the end let's keep it simple. He has calibrated our economy to basically run the carburetor at low interest, low interest rates is the calibration. What makes him think recalibrating is going to be easier or even work? Are we going to be able to sunset some of these post-crisis programs, specifically leading to low interest rates and high stock prices?
HJ: That's the $64 trillion question. I mean, it's amazing. you know, for 20 years the independent central bank was the icon. It was the altar we worshipped at. Countries even wrote central bank defense into law. That went out window so quickly in 2008 which makes you think it was an illusion and now we have all these policies meant to keep goosing this economy we refuse to reform, and it's hard to see how he ends it. Of course he wants to, wants to get back to the position where the central bank controls the value of the dollar and preserves its purchasing value, but he can never get back there. He's got to fill in for all the fiscal policies and regulatory policies that governments won't adopt. So I don't see how he's getting out of it. He's sending a signal, yes, please give me a way out, but I don't actually see it happening.
RS: Final question in the last few seconds. When i talk to people outside of what I do... friends, relatives... they hardly know who Ben Bernanke is. Do you think a big part of this problem is that the general public can't keep up with complicated topics? Is this something that -- that has the ability to change any time soon?
HJ: I don't know. I think I'd worry more when everybody knows who Ben Bernanke is because that's when things are really hitting the fan. Most people, thank God, and have lives that are more interesting to them than the financial news and still are engaged with their families, their jobs, their careers, their projects. The time to worry is when everyone knows who Ben Bernanke is and praying somehow that he can rescue them from a situation he can't rescue them from.
RS: Holman, thanks for taking the time to be the guest today and I'll look forward as usual to every Wednesday to reading your column.
HJ: Great to be with you. Thanks so much for having me.
RS: Carl, Kelly, back to you.
And so it goes.
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