Don’t panic! Don’t panic!

Corporal JonesIt’s not only British political life that has turned into a classic sitcom rerun. Corporal Jones appears to have taken control of the Fed.

The BBC’s Robert Peston – your favourite, Phil 😉 – smells panic in the air.

Meanwhile, Steve Bell has a great cartoon in today’s Guardian that perfectly sums up the “rescue” of Northern Rock.

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5 Responses to Don’t panic! Don’t panic!

  1. Phil Walker says:

    I’ve a friend who lives in a country where the rate of inflation exceeds the interest rate. It’s called Sri Lanka, it’s a third-world country and it’s racked with civil war. The causality is from the latter to the former, naturally; but does Bernanke really want to join the illustrious group of nations whose bank deposits shrink in real terms? He’s in danger of doing it: US inflation figures are kicking around 4%.

    As an old French marechal might have said, c’est magnifique, mais ce n’est pas la gestion.

  2. Thomas says:

    Phil, figuring that out would require our illustrious Fed Chief to do *math*, and that’s just not done you know.

    It does seem that we’re panicking ourselves right into a big recession that will last, if I had to guess, around three years or more. Of course, we were going to have some kind of contraction, and feel some pain for a while, but our emotionalism and panic have led to a larger swoon than all the credit crunches, oil price hikes, and land wars in Asia would have given us.

    Oh well, so it goes. We have only ourselves to blame. All the same, Bernanke’s still a tool.

    Peace out.

  3. Phil Walker says:

    Well, on Today I heard some bod called Howard Davi(e)s from some advertising agency describe Ben Bernanke’s move as being akin to “Corporal Jones”. You weren’t credited, though. 😉

    Thomas: you betcha. The news this morning is all, “It’s had its desired effect, the markets are back up,” which just goes to show how short-termist people’s views are. I really cannot see how, with inflation a real menace and consumer credit a significant part of the trouble, a lower interest rate is going to help anyone except the banks.

    Oh, but the Fed is the banks’ bank. The children are in charge of the sweet tin.

  4. J Random Hermeneut says:

    Being something of an Ann Pettifor devotee I do wish to commend all the actors involved over the last few months for so faithfully sticking to her canonical text. Nothing is so gratifying as to see the show’s actual course of events played out exactly as one expects on the basis of the script. And please, now that we’re heading into Act 5, let’s hope our thespians remain faithful to the plot. It’s quite dramatic in the end, after all.

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