Bernanke Doesn’t Care!

The interest rate is not some toy to play with. The interest rate is a real price in the real world.

What Bernanke and his overlords want to do is to lower the interest rates. What does a lower interest rate mean in the real world? A lower interest rate means that we would like to wait until sometime in the future for our goods, it means that we have a relatively low time preference.

But this is not the case. People sense that we are in a recession. People don’t want to wait, they want the things and the jobs to make the things (the goods and services) now not later.

Bernanke doesn’t care. He looks at a number and fails to understand what it means and then he pushes the buttons to print more money to lower the interest rates. The Federal Reserve system is his toy and he plays it in the way that pleases his overlords.

There are three important points:
1. Bernanke does not know the meaning of the interest rate.
2. He plays according to the rules of his overlords.
3. They do not care about you.