The Next US Fed Chairman: their call is important to you!

Posted: August 19, 2013 in Uncategorized

The current candidates are (in order of current odds)

 

Summers, an academic. He has very good connections (he is a personal friend of President Obama). It would be scary for the markets as he is a non-believer in the Quantitative Easing. He does not believe it works and he will look into terminating it. He is not a diplomat and somewhat relishes stirring a few feathers.

 

Yellen, an academic. She is a close second choice, so pretty much in the race. She is a natural born diplomat and will go on with the Bernanke philosophy. She actually is one of the minds behind QE. The markets would love her. The danger with her is that she wants to maintain QE until unemployment is well under 6.5% (she looks at the participation rate data). The issue with it is that a too long QE could act as a spike in interest rate and create havoc. She is a skilled negotiator and consensus builder (the Fed decisions are never a one man party)

 

The “dark horse” (surprise candidate in Fed Jargon) is Don Kohn a Fed veteran (over 40 years of service). He was the right hand of Greenspan since the 1987 crisis. An also he played a great part as right hand of Bernanke. Even if quite a few link, quite reasonably, the action of Greenspan as the real trigger of the Great Financial Crisis at the moment is the best candidate of the three.

 

But it is quite usual the appearance of the real candidate much later in the game.

 

Other names are Geithner, Fischer and Ferguson.

 

By the way….for who likes conspiracy theories…almost all Fed Chairmen are Jewish  (all of the above, except Ferguson (which has a Jewish wife). Yes Ben Bernanke and Alan Greenspan are Jewish.

 

And by some accounts the Rothschild  of London hold 57% of the non tradable stock of the FED

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