Tuesday, February 10, 2015

Unfortunate to see Bernie Sanders get off track like this. Kelton needs to keep him on message.

Bernie Sanders (I-VT) is a great voice for progressive causes and he's definitely got a gift for language and communication. That's why it's unfortunate to see him get off track like this and lecture Janet Yellen and the Fed about reminding the ECB of its responsibility to Greece and its economy.

Americans don't care. And it can be wrongly construed that he is advocating another American taxpayer bailout of some two-bit country or foreign institution. (As it has been by Zerohedge and other blogs.)

Here's some of what Sanders said:

"In 2008, during the world financial crisis, did you know the Fed, in short term loans, made trillions of dollars available to the ECB -- the European Central Bank. The Fed could have said hey guys you're on your own, but the Fed correctly did not. It understood the significance of what a worldwide financial collapse would be about." Read more.

He may have been referring to the Fed's swap lines and if so, those "loans" did not preclude a financial collapse. Rather, all it did was keep the foreign exchange value of the dollar below where it would have been if the ECB sold euros for dollars to meet the dollar needs of its banking system. At the time I spoke out about that loudly here, here, here, here and here. (And more!)

Bernie, stick to America and our own needs and problems. Kelton should be keeping him on track and not letting him make these types of comments.

2 comments:

netbacker said...

Dialog from Sun of all Fears come to mind:
Senators don't like to be surprised.
I hint at what I'm gonna tell them, then I give them a while to get used to it. Then I tell them.


So lets give Bernie the benefit of doubt here :)

netbacker said...

By the way anyone else following this echo chamber & patting on their backs stuff?
https://twitter.com/farmerrf/status/565218139059658752