Copyright 2012 by John T. Reed

Bernanke was reappointed Chairman of the Federal Reserve by Obama for a four-year term in 2010. I presume he wants to be reappointed again in 2014.

Mitt Romney has publicly said he will not reappoint Bernanke.

In other words, he told Bernanke, “If I win, you’re fired in 2014.”

Hey, Mitt. Were you aware that studies have shown that the Federal Reserve, which is supposed to be independent of the politicians, has generally behaved as if to help the incumbent in the White House?

What does that mean? Lowering interest rates and “printing” money.

Bernanke and his fellow Federal Reserve Board members have recently talked about doing a Quantitative Easing III, a.k.a., “printing” money.

That might help Obama by making the economy better before the election. But we have already had too much Quantitative Easing that has put us on the road to hyperinflation. More would speed our arrival at that financial crisis.

I think maybe firing Bernanke two years in advance was gratuitous—too much inside baseball to be a vote-getting campaign promise—but will motivate Bernanke to use his power to try to get Obama re-elected.

Here is a NY Times article about it. They pussyfoot around the politcs of it.

John T. Reed