Fed's Fisher: Bernanke's No Tooth Fairy, Gold Standard is 'Utopian Dream'
Tweet
Share
E-mail
Dallas Fed President Richard Fisher recently made some comments to Fox Business Network on the U.S. economy, Texas Governor and Presidential Hopeful Rick Perry and Fed Chief Ben Bernanke. The interview is expected to air Monday night (Aug. 22) at 9pm ET.
Responding to Gov. Perry who recently argued if Bernanke were to print more money, it would be "treasonous," Fisher said he "wouldn't take it too seriously." The Fed Head pointed out "Treason is the only crime punishable by death; I find it hard to believe that Governor Perry in his most hyperbolic moment meant that literally. Ben Bernanke is a patriot."
What does Fisher think Bernanke is going to say at Jackson Hole on Friday? "You’ll learn when you hear him speak. Ben Bernanke’s not the tooth fairy. His job is not to leave presents under the pillow of people who have desires that may not be easily fulfilled. Our job is to put things right in the long term."
Fisher believes there is enough liquidity in the U.S. right now. "The gas tank is full but the business community, private sector, needs to be incentivized to step on the accelerator and engage the transmission," commented Fisher. "I sure hope those reserves get drawn down and corporations put their working capital to work. There is a lot of money lying fallow."
Why did he vote against a two-year freeze on a zero interest rate? It lets businesses put off another expense "because the cost of borrowing will be held at a very low rate for two years. I just think it’s not an incentive it’s a disincentive but time will tell this is my personal opinion and I am just one of 17 people."
He feels that, yes, the U.S. needs a central bank. He doesn't know of a country that survived without one.
Finally, Fisher calls gold as a currency is a "utopian dream" that's not going to happen. Fisher said, "No one has a commodity-based currency any longer. Gold is priced in dollars, or in euros. You go to sell it or buy it, you pay in dollars or in euros or another paper currency."
The full interview will be on Fox News' America’s Nightly Scoreboard at 9pm tonight.
Responding to Gov. Perry who recently argued if Bernanke were to print more money, it would be "treasonous," Fisher said he "wouldn't take it too seriously." The Fed Head pointed out "Treason is the only crime punishable by death; I find it hard to believe that Governor Perry in his most hyperbolic moment meant that literally. Ben Bernanke is a patriot."
What does Fisher think Bernanke is going to say at Jackson Hole on Friday? "You’ll learn when you hear him speak. Ben Bernanke’s not the tooth fairy. His job is not to leave presents under the pillow of people who have desires that may not be easily fulfilled. Our job is to put things right in the long term."
Fisher believes there is enough liquidity in the U.S. right now. "The gas tank is full but the business community, private sector, needs to be incentivized to step on the accelerator and engage the transmission," commented Fisher. "I sure hope those reserves get drawn down and corporations put their working capital to work. There is a lot of money lying fallow."
Why did he vote against a two-year freeze on a zero interest rate? It lets businesses put off another expense "because the cost of borrowing will be held at a very low rate for two years. I just think it’s not an incentive it’s a disincentive but time will tell this is my personal opinion and I am just one of 17 people."
He feels that, yes, the U.S. needs a central bank. He doesn't know of a country that survived without one.
Finally, Fisher calls gold as a currency is a "utopian dream" that's not going to happen. Fisher said, "No one has a commodity-based currency any longer. Gold is priced in dollars, or in euros. You go to sell it or buy it, you pay in dollars or in euros or another paper currency."
The full interview will be on Fox News' America’s Nightly Scoreboard at 9pm tonight.
Create E-mail Alert Related Categories
Fed, Insiders' BlogRelated Entities
Ben S. BernankeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
