(cross-post from my other blog, Outrun Change.)
Here’s the on-air confessional interview as it should have happened. Or perhaps it is an animated educational cartoon. You can decide for yourself:
Bernanke to Oprah: ‘I’ve Been Doping for Years’.
This cartoon gives a superb explanation in 12 minutes of a major factor about how we got into our current economic mess.
The format is an imaginary interview with the chairman of the Federal Reserve Bank, Ben Bernanke, as he confesses to long-term doping of the economy.
A few of my favorite lines:
“I have been mainlining monetary heroin for years.”
The interview starts with yes or no questions. The opener:
Did you ever utilize risky monetary stimulants to artificially boost your central banking performance?
At about the 4:30 point, the cartoon has a good explanation of the role played by these economic ‘doping’ tools in facilitating the housing bubble and resulting recession.
The cartoon ends with a depressing picture of what will likely happen when we finally unwind the Fed’s untenable position of tripling the monetary supply.
If you want an only slightly tongue-in-cheek explanation of QE 1, 2, & 3 along with our current mess, check out the video.