On Tue, Apr 17, 2012 at 3:29 PM, Jim Devine <[email protected]> wrote:
> It's not that the Fed has "turned left." Instead, its leadership
> (mostly) knows that if they want to save their main constituency (the
> banks, Wall Street) in the current situation, they cannot accept
> right-wing bromides.


I think this is too simplistic. We cannot speak of the Fed as if it
were one monolithic entity that has a completely, coherent and
consistent politics.

Specifically, Ben Bernanke and the Fed Board of Governors is a
technocratic entity that seems eminently clear-headed and sensible
when compared with, say the ECB. I think it is a mistake to suggest
that Ben Bernanke serves Wall St in the way that Greenspan did.
Bernanke is a right-wing Keynesian and has always been one fairly
consistently.

The NY Fed, on the other hand, is a creature of, by and for Wall St.
But it too represents the Wall St aristocracy (JP Morgan and Goldman
Sachs) rather than the Tea party loving hedge fund types like Peter
Schiff. Their long-term greed may seem positively enlightened in times
of crisis such as these.

And finally there are the minor regional Feds, many of which are
loaded with ideological right-wing types like Kocherlakota.

What you end up with from the Fed as a whole is a variety of
contradictory voices, some of which seem progressive in comparison
with the rest of the power system.
-raghu.
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