Are You Skeered Hoenig?

Posted 2010-02-16 14:02
by Karl Denninger
in Federal Reserve

Feb. 16 (Bloomberg) -- Federal Reserve Bank of Kansas City President Thomas Hoenig said the U.S. must take “difficult” steps to reduce spending and increase revenue so the central bank isn’t pressured to fund the “unsustainable” federal debt.
“It is a fact that the current outlook for fiscal policy poses a threat to the Federal Reserve’s ability to achieve its dual objectives of price stability and maximum sustainable long- term growth, and therefore is a threat to its independence as well,” Hoenig said today in a speech in Washington.

Uh huh.

Have you ever had a drunk friend or family member?

Did they ever pester you for a $20 because they were broke - and you knew they were headed straight for the liquor store with it?

Did you give it to them?

Did you call their boss the next morning and make an excuse about them being sick - when they were really passed out with their head hanging over the toilet bowl?

This, by the way, is called enabling, and it makes you just as responsible for the bad act as the person doing it, because but for your help they couldn't have gotten drunk.

Well Hoenig, who's been buying up both Treasury and MBS debt for the last year, enabling The Federal Government to run a deficit of more than $1.5 trillion - oh, and they're doing it this year too.

That would be The Fed.

So before you start talking about how "The Government" must get control, stop enabling the very irresponsible behavior that you're complaining about!

There ends our lesson in political BS for today.

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