Federal Reserve chairman Ben Bernanke is known by the derogatory nickname "Helicopter Ben." The nickname comes from a speech he gave in 2002, in which he referenced Milton Friedman's metaphor of a helicopter dropping money on a community as a way to rescue the economy.
Well, it turns out that the helicopters are now flying. The graph below, which comes from Greg Mankiw's Blog, shows the monetary base since 1986. The monetary base is defined as currency plus bank reserves.
A Poem, by yours truly:
Real estate was
The way to get rich.
Just buy a home
And give it a flip.
If you bought more house
Than you can afford,
Helicopter Ben
Will dump money at your door.
He's Helicopter, Helicopter,
Helicopter Ben,
The money-throwing man
Who's working at the Fed.
Money from the clouds,
Money from the sky,
Manna from heaven,
Thank that helicopter guy.
Posts
Easy to criticize from the outside.
ReplyDeleteHe is fighting Deflation, with every tool at his disposal.
Deflation is real and it is happening right now.
It is the ultimate economic enemy.
The USA, led by the Fed and Treasury, are currently propping up the entire world's economic system.
As much as we hear complaints and criticisms from far and wide, the people who matter are voting with their money - by running as fast as they can into US Dollars and US Treasury debt.
Dollar rally watchers should see that the Yen carry implosion is causing the flight to dollars, not a rush to "quality".
ReplyDeleteBen Bernanke is making all the same mistakes that were made on the eve and at the start of the Great Depression. Deflation or Hyperinflation; either way we are in a real jam.
Great poem James! May I include it with a link on my blog?
getyourselfconnected said...
ReplyDelete"Great poem James! May I include it with a link on my blog?"
Everything I write on this blog is in the public domain. You may copy and link at will.
That was a nice poem...and i like this line..
ReplyDeleteMoney from the clouds,
Money from the sky,
Manna from heaven,
Thank that helicopter guy.
i hope you can write and share more ideas...
Bubble Meter,
ReplyDeleteHilarious picture and a great poem! Rebecca Wilder of NewsNEconomics.com passed on a link to your blog, this post specifically, but I will def. be checking back and reading your other posts.
Thanks,
Tim
Bernake = Satan.
ReplyDelete