Rick Perry’s phony Federal Reserve rhetoric

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I’m not a fan of Rick Perry’s phony machismo act, but when he told an Iowa crowd “If [Bernanke] prints more money between now and the election, I dunno what y’all would do to him in Iowa but we would treat him pretty ugly down in Texas” I had to applaud the fact that there’s a growing awareness of where the true faults lay in our boom and bust economic situation. I do not applaud how he unveils threats of Texans turning things ugly.

Of course the Federal Reserve and lackeys wouldn’t dream of taking that kind of verbal abuse on behalf of Texas lying down.

It seems Bloomberg reporters went hunting for reaction quotes and found their zingers from a couple of “unaffiliated” defenders of the Federal Reserve.

Cornelius Hurley, a law professor at Boston University who was once an assistant general counsel to the Fed’s Board of Governors said, “You just can’t run around shooting your mouth off and talking about the Federal Reserve and talking about treason and getting ugly.”

Hurley went on to say that this kind of stuff worries him “I have never heard the rhetoric ramped up the way Gov. Perry did,” he said. “That’s a very troubling development. We expect more of our president and should expect more of our presidential candidates.”

Yes, in fact he’s right that we should expect more. I keep thinking there’s probably a more principled warrior against The Fed than rhetorical Rick Perry clumsily learning how to dog-whistle call to Tea Party activists. Someone better than a guy who was a huge supporter of bailouts to banks in 2008. Somehow the term “dickhead” doesn’t suffice for people who “forget” to mention Ron Paul when talking about reining in The Fed.

Brian Gardner, senior vice president for Washington research at Keefe Bruyette & Woods Inc., even noted that the comments were aimed at Tea Party activists who are skeptical of the Fed but that the heated comments would actually have little impact on investors.

“Investors are focused on things other than the presidential race,” he said. “If it becomes clear that he’s going to be the nominee or if it looks like he could win the general election, then investors will start to pay attention.”

James Hoard, spokesman for the Federal Reserve Bank of Dallas, would not comment to Bloomberg. A Hammer of Truth request for comment from the Federal Reserve Bank of Cleveland was also unanswered at the time of this report.

Notice how both “sides” are scratching the surface of the debate instead of talking specifics of inflationary monetary policy?

3 Comments
  1. I don’t disagree with the message the author is trying to convey, but I wish that he had listed more contradictions in his positions. For example, he pointed out that he was for the bailouts in 2008. I’d like more of that.I want to hear more examples of hypocrisy when calling someone’s criticism of the FED “phony”.Has he encouraged monetary expansion in the past? Has he suggested that the Fed should lower/higher/maintain interest rates to respond to some situation? Etc

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