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Chris Hayes Calls on the Fed to Open the Spigot
It’s bikini season! No, not that bikini — the bikini graph that shows job losses falling and job growth picking up under Obama. But lately that picture has changed as the economy slows. And on The Rachel Maddow Show last night, Chris Hayes explained why the Fed should shoulder the blame.
Chris uses a simple metaphor: imagine we’re all farmers, dependent on the rain. Our farm is the economy, and rain is money. Right now we’re in “the worst drought since the Great Depression,” Chris says (and he doesn’t mean the Dust Bowl). The Fed is in charge of irrigating the fields to make sure there’s a regular flow of water, but it “refuses to open the spigot,” worrying that “some day there might be flooding!”
How can this be? Well some farms — otherwise known as the banks — have pipes that run directly into the dam, and some have personal reservoirs, so they’re just fine. “While you and your neighbors try to scratch a few potatoes out of the stone dead earth, the banks are having water fights and the big wealthy farmers are installing slip and slides,” Chris explains. Watch the full segment:
Chris uses a simple metaphor: imagine we’re all farmers, dependent on the rain. Our farm is the economy, and rain is money. Right now we’re in “the worst drought since the Great Depression,” Chris says (and he doesn’t mean the Dust Bowl). The Fed is in charge of irrigating the fields to make sure there’s a regular flow of water, but it “refuses to open the spigot,” worrying that “some day there might be flooding!”
How can this be? Well some farms — otherwise known as the banks — have pipes that run directly into the dam, and some have personal reservoirs, so they’re just fine. “While you and your neighbors try to scratch a few potatoes out of the stone dead earth, the banks are having water fights and the big wealthy farmers are installing slip and slides,” Chris explains. Watch the full segment: