Charles L. Evans

[opebo]

Fed must act now to boost economy, Evans says

[Beet]

He has the right instincts, but he's constrained by being a central banker. The Fed can only do so much, because despite what Bernanke says, they can't just drop money from a helicopter. When they create money, the ones with first dibs are banks that have reserves at the Fed-- hence the money is injected straight into the world of high finance, where a large amount of it gets siphoned off for commodities speculation and investment in other assets by financial institutions.

Fiscal policy, the political world, must pick up the slack. This won't, can't, be settled by an institution such as the national central bank. What's needed is direct relief, both political and economic, to those who have been hurt by the neo-liberal consensus.

[opebo]

Of course you're quite right, Beet, but I meant in the context of his position, he's a freedom fighter.