Interest Clairvoyance

Just a few thoughts, gentle readers, on a rather remarkable but little reported factoid. Mr. Ben Bernanke, Chairman of the Federal Reserve, recently announced that he would keep interest rates very low for the next two years. Does this sound remarkable? It should. Consider:

(1) The Fed virtually never makes long-range prognostications. Until now, Fed Chairmen have understood that the economy is prone to unforeseeable changes, and planning more than a few months ahead is foolish. The necessity of corrections is a reality that can't be predicted.

(2) Market forces beyond Mr. Bernanke's control can, and likely will, force interest rates up. The multi trillion pound wheel of the credit downgrade has already started rolling downhill and Mr. Obama and his economic cronies remain stolidly behind it, pushing for all they are worth.

(3) Artificially trying to keep interest rates low could have most unfortunate effects on the economy.

(4) The economy is—how to put this gently—unstable. One of the primary reasons businesses aren't hiring and building is because of this instability. They have no idea what the Obama Administration is going to do from minute to minute let alone two years hence. What Mr. Bernanke has said makes as much sense—and has much in common with—Soviet five year plans.

(5) The performance of every one of Mr. Obama's high-level economic appointees has been less than inspiring. In fact, Christine Romer, first chair of Mr. Obama's Council of Economic Advisors recently said that the American economy is "pretty darned f***ed." Ms. Romer, recently (thankfully!) retired from government service, was one of the primary architects of that f***ing. This is known as "irony."

(6) One might be forgiven for thinking that rather than being the Chairman of the Federal Reserve of the United States of America Mr. Bernanke is the shadow chairman of the Obama reelection committee.

Unlike Mr. Bernanke, I can make a prediction that will almost certainly come to pass: If Mr. Obama is re-elected, even if interest rates remain low, American businesses will not celebrate by means of hiring and expansion. They will realize, then as now, that our economy is in fact, "pretty darned f***ed," and that Mr. Obama is the primary economic porn film actor. This too is commonly known as irony.