The Votes Are There For QE 2, Despite A Few Voices Of Reason

It seems that this week was the official "Fed Speak Week" when all Fed presidents make pubic statements regarding the economy and whether more QE is needed. Some have openly advocated more QE, while others have said the US economy was in good enough shape to grow on its own without more QE. The major problem for supporters of monetary sanity is that all of the critics of more QE are not voting members of the FOMC (Fisher and Plosser). All that matters is what current voting members want. Below is a list of current voting FOMC members and there stated or implied views on QE 2 from recent statements:

Zimbabwe School/Anti-Dollar

              

1. Ben S. Bernanke--Zimbabwe Ben loves his money printing

2. William Dudley---believes that money printing can reduce the unemployment rate (LMAO).

3. Eric Rosengren---delusionallly believes that money printing stimulates the economy.

4. James Bullard---used to be somewhat hawkish, but has completely changed his tune.

5. Sandra Pianalto--claims inflation is too low, despite gold $1300, oil at $80, and $3.50 copper.

6. Daniel Tarullo--always votes with the majority.

7. Elizabeth Duke--had concerns about reinvesting MBS, but voted for it in the end.

Might Be On the Fence (will probably vote with majority)

             

1. Kevin Warsh--potential wildcard. He has said the economy was improving and that monetary tightening may be needed. 

Lone Member For Monetary Sanity

1. Thomas Hoenig--The only reponsible member of the FOMC. He has learned from his mistakes and does not want another asset bubble.

Summary: Either way you splice it, Bernanke has the votes for QE 2, the only question is of the timing (November or December). It does not matter whether the decision is 8-1 or 7-2 in favor of QE 2. The Zimbabwe School is in complete control. RIP US Dollar and hello $1500 gold.  

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The Votes Are There For QE 2, Despite A Few Voices Of Reason