Dude, I'm blogging on the economy.
And so it begins, as former Fed chief Ben Bernanke begins the 21st-century version of a consulting career.
Bernanke has entered the blogosphere, writing his opinions and defenses of his monetary policies, as well taking a couple of shots at Harvard economist and White House insider Larry Summers, who was the runner-up to replace Bernanke. (He came in second to current Chair Janet Yellen.)
Along the way, Bernanke lays on the wonk and econo-babble pretty thickly, indulging in drowsy discussions about late 19th-century econometric models.
Ben's first blog post was titled "Why Are Interest Rates So Low?" Many would love to know the answer to that question.
In essence, Bernanke defends the ultra-low rate policy he initiated to thwart the stagnant low growth, low quality-job producing economy we now live in.
He seems a bit defensive, even sensitive — especially when he goes on to talk about how seniors feel cheated by zero interest rates.
"When I was chairman, more than one legislator accused me and my colleagues on the Fed's policy-setting Federal Open Market Committee of 'throwing seniors under the bus' (to use the words of one senator) by keeping interest rates low," Bernanke wrote.
Larry SummersPhoto: Getty Images
Seniors are better off with the zero earned on their savings account and CD's "so that the economy could recover and more quickly reach the point of producing healthier investment returns" is Bernanke's rationale.
Yes, stocks and bonds do rally when rates are very low, but only to the point where such amphetamine-charged growth peters out. In our economy, that seems to be about 2 percent per annum.
That is a level that has proved incapable of producing quality jobs or any sustainable wage gains.
Of course, an eloquent refutation of Summers' theory is the economy's current Secular Stagnation. And I believe government policies are the major reason for it.
What economic benefit do zero interest rates provide if only the privileged few can borrow at them?
Heck, even Bernanke — as a sitting Fed chairman — was denied a refinancing of his mortgage on his Washington property.
It didn't have to be that way. An illuminating case in point is auto sales.
Consumer credit, mortgages and small business loans all fall under the 2,700-plus pages of new regulations — and are suffering mightily.
But auto financing is completely excluded from these Dodd-Frank regulations.
During the 2008 crisis, automobile sales bottomed out at 9.8 million. Last week they came in at a turbocharged 17.2 million annual rate.
In other words, today you're walking out of a dealership with a car if you want to buy one, because lending is unencumbered by Washington's interference.
The result: Auto sales records are being shattered.
It doesn't take an Ivy League economist like Bernake or Summers to understand that if Ben's ultra-low rate thesis were correct, we wouldn't be coming up on seven years of little growth.
The hands-off policy that has led to more of us driving new cars could drive a robust economy too — if only we would let it.
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