Sunday, 29 August 2010

  • Saturday 28 August 2010

  • Ben Bernanke

    Ben Bernanke, Federal Reserve chairman: Central bankers alone cannot solve the world’s economic problems. Photograph: Jason Reed/Reuters

    What did the chairman of the Federal Reserve say in Jackson Hole? According to much of the reaction, Ben Bernanke said the "Fed stands by to boost US growth" (FT), or that the "Fed is ready to prop up economy" (NYT) or even that the "Fed stands ready to support recovery" (WSJ).

    In other news, a man was bitten by a dog. And by that I mean: the reverse would actually be news.

    Yes, Bernanke said the Fed would act if the economic outlook deteriorated further, or if there were signs of deflation. He doesn't appear to think that either of those events are likely to occur, especially the deflation, but if they do, the Fed will do stuff. Which is exactly what you'd expect a modern central bank governor to say.

    But what was missed was Bernanke's low-key plea for help - from the government.

    Bernanke kicked off his Jackson Hole speech by detailing the problem the US faces, notably: "In many countries, including the United States and most other advanced industrial nations, growth during the past year has been too slow and joblessness remains too high."

    He followed that by saying: "This list of concerns makes clear that a return to strong and stable economic growth will require appropriate and effective responses from economic policymakers across a wide spectrum, as well as from leaders in the private sector. Central bankers alone cannot solve the world's economic problems."

    Now, appointed technocrats such as Fed chairmen have to avoid getting involved in politics. They can't come out and say "what the US economy really needs is another fiscal stimulus passed by Congress", even if that's what they believe.
    Continue reading...

  • george bush, inaugural balls

    Ken Mehlman, a mastermind behind George Bush's 2004 election campaign success (above), has revealed he is gay. Photograph: Mark Wilson/EPA

    After heading a Republican party that was openly hostile to the civil rights of gay and lesbian Americans, the former Republican party chairman and Bush aide Ken Mehlman has stepped out of the closet.

    In doing so Mehlman becomes the most senior Republican figure to publicly acknowledge his homosexuality, at a time when the Republican party remains deeply opposed to same-sex marriage and the abolition of the "Don't ask, don't tell" policy that bars homosexuals from serving in the US military.

    In an interview with Marc Ambinder of the Atlantic, Mehlman said he was going public over his sexuality because he wants to openly support the cause of legalising marriage for gays and lesbians. He told Ambinder:

    "It's taken me 43 years to get comfortable with this part of my life," said Mehlman, now an executive vice-president with the New York City-based private equity firm, KKR. "Everybody has their own path to travel, their own journey, and for me, over the past few months, I've told my family, friends, former colleagues, and current colleagues, and they've been wonderful and supportive. The process has been something that's made me a happier and better person. It's something I wish I had done years ago."

    Mehlman was George Bush's campaign manager for the nail-biting 2004 presidential election, and served as chairman of the national Republican party from 2005 to 2006. During that period Republican strategists resorted to devices such as state referendums banning gay marriage as wedge issues designed to motivate Republican voters.