If you were Tim Bernanke

[we_are_toast]

I've had a lot of fun bashing Bernanke and Geithner over the months, but what if you were in their shoes. We seem to have stopped falling off the cliff and we're in a pause before, what I think most iTulipers agree will be, the next leg down.

Well, if the President fired both Bernanke and Geithner today and named YOU the Federal Treasury Czar, with the powers of both offices, what would you do to stop the next leg down in the economy? You have to work with the conditions and resources that exist today. Are you up for the job, or is it too big to handle?

[vinoveri]

Re: If you were Tim Bernanke

I've had a lot of fun bashing Bernanke and Geithner over the months, but what if you were in their shoes. We seem to have stopped falling off the cliff and we're in a pause before, what I think most iTulipers agree will be, the next leg down.

Well, if the President fired both Bernanke and Geithner today and named YOU the Federal Treasury Czar, with the powers of both offices, what would you do to stop the next leg down in the economy? You have to work with the conditions and resources that exist today. Are you up for the job, or is it too big to handle?

This is a false premise/assumption, that somehow the gubmint can control the economy (although maybe half right because the gubmint can certainly manage to destroy the economy through its policies). Central planning is not the answer, period. Real growth and wealth comes from the smart, savvy, and hard work of the millions of citizens who make up the society.

But to answer your question, to prevent the next leg down (and in the stock market I take you to mean)... print another $10 Trillion should do the trick and at least forestall the next leg down :p

Really ... well for starters:
Liquidiate every insolvent bank and sell/transfer the assets to competent solvent banks.
Launch investigations into all legitimate allegations/suspicions of fraud in the financial sector, and prosecute fully.
Raise Fed Funds to 5% over the next 18 months

[Diarmuid]

Re: If you were Tim Bernanke

This is a false premise/assumption, that somehow the gubmint can control the economy (although maybe half right because the gubmint can certainly manage to destroy the economy through its policies). Central planning is not the answer, period. Real growth and wealth comes from the smart, savvy, and hard work of the millions of citizens who make up the society.

But to answer your question, to prevent the next leg down (and in the stock market I take you to mean)... print another $10 Trillion should do the trick and at least forestall the next leg down :p

Really ... well for starters:
Liquidiate every insolvent bank and sell/transfer the assets to competent solvent banks.
Launch investigations into all legitimate allegations/suspicions of fraud in the financial sector, and prosecute fully.
Raise Fed Funds to 5% over the next 18 months

To start

Hire Bill Black and like minded individuals with the aim of performing a complete bowel cleansing , ensuring the removal of every last trace of Mucoid Plaque from the financial colon, of which it is now currently infested with. That should help clear up some of the credit constapation we are seeing

[ricket]

Re: If you were Tim Bernanke

Well, if the President fired both Bernanke and Geithner today and named YOU the Federal Treasury Czar, with the powers of both offices, what would you do to stop the next leg down in the economy? You have to work with the conditions and resources that exist today. Are you up for the job, or is it too big to handle?

Eliminate the Federal Reserve, fractional reserve banking, and unlimited credit that goes to only a select few.

[cjppjc]

Re: If you were Tim Bernanke

In addition to all the well thought out ideas above I would add:

Tax all income as income regardless of how it is earned. Eliminate all deductions on tax returns. Maybe allow the number of exemptions per child. Really have a tax return that can be done by 90 percent of Americans on tax day.

[Ghent12]

Re: If you were Tim Bernanke

Based on the title, I thought the question would be what I would do if I were either one of them. I'd give myself a huge raise and go on vacation for the next couple of months, if I were either Turbo Timmy or Chopper Ben.

If they were fired and I were appointed? What I would do depends entirely on the mandate I would be given. If I believed that I could not be fired, no matter what, then I would do everything I thought was the right move. Raise interest rates, reduce the tax code size by enormous amounts, and etc. I'd hire some economists of the Austrian school as advisers.

If, however, I had to keep up appearances of successes in order to justify my continued employment in that position, especially with President Obama in charge, I wouldn't be able to do anything. The economy needs a significant and very fast downturn in order to correct the imbalances. Huge banks and enormous corporations need to go bankrupt, and if I did the right thing and supported policies that made that happen, I wouldn't be able to keep my job long enough to see it through. Then the President would simply appoint someone else that liked the slow death crawl into hell that we're on now.

In other words, the philosophy of control over the economy, the Keynesianism, will ensure our slow and very painful unwinding.

[D-Mack]

Re: If you were Tim Bernanke

[jtabeb]

Re: If you were Tim Bernanke

I've had a lot of fun bashing Bernanke and Geithner over the months, but what if you were in their shoes. We seem to have stopped falling off the cliff and we're in a pause before, what I think most iTulipers agree will be, the next leg down.

Well, if the President fired both Bernanke and Geithner today and named YOU the Federal Treasury Czar, with the powers of both offices, what would you do to stop the next leg down in the economy? You have to work with the conditions and resources that exist today. Are you up for the job, or is it too big to handle?

First off, I'll point out that effective, straightforward solutions were never the problem (and still aren't the problem). It's the ABILITY to IMPLEMENT these solutions over the objections of VESTED INTERESTS of the FINANCIAL AND POLITICAL SYSTEM THAT'S THE PROBLEM. So don't kid your self as to why we have not seen a resolution of this crisis.


It's so easy that it's ludicrous. (but since you asked, I'll comply). Notice, just because it is simple, doesn't mean it's not a RADICAL departure from the past.

A philosophy is required to guide all actions in this process, so I outline one here. It ensures that the policy decisions are effective, just, and preventative of re-lapse.

That philosophy is: Take the ones that made the mistakes to task and hold them responsible and accountable for their behavior and judgments. Do not punish those that behaved in a responsible manner in the process of cleaning up the mess. Protect the innocent (responsible) at the expense of those who performed criminally / irresponsibly.

Step ZERO: BAN ALL lobbying, political contributions from ANY FIRM that has been the recipient of ANY federally sponsored bailout/stimulus funds. NO EXCEPTIONS!

First Step. Back all bank deposits with a full US gov Guarantee. Put all insolvent banks into "operating" receivership (pre-packaged bankruptcy), no matter the size, allow operations to continue.

Second Step. Nullify all non-economic derivatives (futures/options/ OTC contracts) defined as production or consumption hedging (e.g. legitimate hedging operations).
All others are NULL and VOID.

Third step. allow all institutional investors (mutual funds, pension plans, etc.) to sell their holdings to the US FED at FACE VALUE (cash for trash, for the people, not wall street) in exchange for USTs. (same for individual IRA/401K holdings). Remove all early withdrawal tax penalties on retirement accounts to allow transfer into other asset classes.

Step Four. Allow encourage physical PM ownership by the solvent. The get first shot, no leverage allowed(no credit cards or bank loans for purchases) Must come from cash or depositary holdings. (same as the bank makes you do when you put a downpayment on a house). Change the PM tax rate to the same rate as the capital gains are taxed at.

Step Five. Change the tax code so that earned income is taxed at the same rate as capital gains and working individuals are allowed business expenesing (you pay taxes on your NET like a buisness, not your GROSS earned income). Eliminate payroll taxes totally, both for medicaid and social security. Instead add and additional 10% capital tax and a 3% national sales tax to tax the place of the previous taxes.

Step Six. Eliminate all interest deductions for individuals and businesses. Period! (includes all real estate transactions too).

Step Seven. Rewrite all contracts in non-compounding terms. All debts and claims are restructured into this construct. This is not "simple interest" which is a compounding function, but instead a linear growth function.

Step Eight. Allow the markets to FUNCTION. Let everything go Mark-to-Market without intervention.

Step Eight. Print as much currency as necessary to fund this effort. (Including increased unemployment insurance, food stamps, rent vouchers, health coverage, etc).

Step Nine. (goes hat-in-hand with eight) Issue US Sovereign Gold backed debt that is super-senior to all outstanding government debt to use to fund the domestic Fiat Issuance in eight and to fund re-industrialization/new energy infrastructure.

Step Ten. Nationalize the FED. Invalidate all Fed Claims on debts, US Gov Keeps all FED assets.

Step Eleven. Issue new 100% reserve multi-metallic currency. Gold, Silver, Platinum, Palladium with a market determined exchange rate between the four, free to float in value against the domestic FIAT currency.

Step twelve. Allow bank investment of these deposits. Withdrawals can be in fiat or metal form. Bank balance changes based on market changes in price against fiat currency. Two types of accounts. Demand Draw checking which is insured and interest earning savings which is NOT insured.

Anyway, you get the idea. The above is WHAT's required. It's a fairly simple and straightforward process, but it is totally revolutionary (and doesn't have a snowballs chance in hell of happening due to the a fore mentioned objections of the financial and political elite).


So, you see why were are not very hopeful?

There is some good news. China appears to be taking my advice with regard to the parallel monetary system (FIAT and PM). If they follow through, this will force the rest of the world to follow, not by choice, but because of necessity.

(just imagine if China is offering you Gold or Silver to buy your uranium or oil and the US is offering you unbacked Dollars or T-Bills. Which Deal would YOU TAKE!?!)

So let's all pray for China to stick to it's guns as that's about the only way we are gonna see any change in this country.

[cindykimlisa]

Re: If you were Tim Bernanke

Do the Obvious of course!

1. Join the group of thirty
2. Hire advisors from Goldman
3. Do "more of the same"
4. In four years go to work for Goldman.

Cindy

[Diarmuid]

Re: If you were Tim Bernanke

Do the Obvious of course!

1. Join the group of thirty
2. Hire advisors from Goldman
3. Do "more of the same"
4. In four years go to work for Goldman.

Cindy

Bravo Cindy you would go far the rest of ye losers have failed the interview, or if in the job would be shot or demonised by the press, for sleeping with hookers or what not:p