Home
In this issue
December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review

Some expect too much of Fed's progressivism

By George Will



JewishWorldReview.com | Because Ben Bernanke’s public persona is as mild as milk, the transformation in American governance in which he has participated is imperfectly understood and hence insufficiently deplored. The change is dramatized by two recent developments.

One was the campaigning by several constituencies for and against what supposedly were the two leading candidates — Larry Summers and Janet Yellen — to replace Bernanke as chairman of the Federal Reserve. The Fed can no longer be considered separated from politics.

The second, and related, development is the semantic infiltration of journalism by language that ratifies the Fed’s increasingly grandiose role. A Financial Times column on Yellen, now Bernanke’s presumptive successor, described her as “poised to take the tiller of the US economy.” Oh? The economy has a tiller? And with it the Fed chairman can steer the economy? Who knew? On the Atlantic’s Web site, a columnist defends the Fed’s recent decision not to follow through on earlier intimations about reducing its monthly purchases of $85 billion in mortgage and treasury bonds. This, the columnist said, illustrates the Fed’s admirable “nimbleness.” A touch on the tiller here, a nimble reversal there — these express the fatal conceit of an institution that considers itself capable of, and responsible for, fine-tuning the nation’s $15.7 trillion economy.

Slowing the Fed’s bond purchases is called “tapering,” which means more modest “quantitative easing.” This is how governments talk when trying not to be understood. By continuing the pace of “easing” — printing money — the Fed has acknowledged that its fine-tuning has failed. The nimble, tiller-touching Fed assumed it would be more successful at reducing unemployment.



Well, to err is human. To assume that a few government officials can and should steer America’s vast, globally connected economy — hundreds of millions of people making trillions of decisions a day — is a kind of confidence peculiar to the progressive temperament. In December 2010, Bernanke had this exchange with Scott Pelley of CBS’s “60 Minutes”:

Bernanke: “We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation at the appropriate time.”

Pelley: “You have what degree of confidence in your ability to control this?”

Bernanke: “One hundred percent.”

Bernanke once hoped that economists might (in John Maynard Keynes’s words) “get themselves thought of as humble, competent people on a level with dentists.” But Bernanke speaks the heroic language of a central planner, talking about the Fed’s tasks of “economic management” and “economic engineering.”

RECEIVE LIBERTY LOVING COLUMNISTS IN YOUR INBOX … FOR FREE!

Every weekday NewsAndOpinion.com publishes what many in the media and Washington consider "must-reading". HUNDREDS of columnists and cartoonists regularly appear. Sign up for the daily update. It's free. Just click here.

Of course he has confidence in the Fed’s abstract power to end zero interest-rate policy (ZIRP). Easier said than done. Rep. Kevin Brady (R-Tex.), chairman of the Joint Economic Committee of Congress, notes that ZIRP, now four years long, has become “monetary morphine” for Wall Street, which is addicted. The day the Fed reneged on its hints of tapering, Wall Street responded euphorically — the Dow soared 147 points.

ZIRP, which Yellen ardently supports, is trickle-down economics: Money, searching for yields higher than bonds offered under ZIRP, floods into stocks, the rising value of which supposedly creates a “wealth effect” — feelings of prosperity that stimulate spending and investing among the 10 percent who own about 80 percent of all stocks.

ZIRP also makes the Fed an indispensable enabler of big government. By making borrowing, and hence deficits, cheap, ZIRP facilitates the political class’s bipartisan strategy of delivering current benefits while deferring costs. ZIRP also provides cheap credit to big government’s partner, big business.

Originally, in 1913, the Fed’s mission was price stability — preserving the currency as a store of value. In 1977, Congress created the “dual mandate,” instructing the Fed to maximize employment. This supposedly authorizes the Fed to manipulate the stock market, part of Bernanke’s inflation of the dual mandate into “promoting a healthy economy.” Is a particular distribution of income unhealthy? The Fed will tell us.

The next Fed chair will put her or his hand on the economy’s imaginary tiller after politically muscular constituencies campaigned for her or his candidacy. What will this helmsman do when, say, the homebuilders and others in the construction industry clamor preemptively against any retreat from ZIRP?

The Fed has become the model of applied progressivism, under which power flows to clever regulators who operate independent of political control. The Fed is, however, a creation of Congress, which may not forever refrain from putting a bridle and snaffle on a Fed that increasingly allocates credit, wealth and opportunity.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

George Will's latest book is "With a Happy Eye but: America and the World, 1997-2002" to purchase a copy, click here. Comment on this column by clicking here.

Archives

© 2013 WPWG

Columnists

Toons

Lifestyles

QUANTCAST