As they discuss, it's very nice that it a complete financial collapse has been averted, at least so far, but the overall economic situation, the unemployment situation, and lack of loans points to many areas where Bernanke simply has been unsuccessful. It seems the President and some Senators want to grade him on a curve, but I think Menendez should seriously think about blocking Bernanke simply to send a message. Lots of people are losing their jobs, Govenor Corzine was voted out, and however how hard Bernanke works, his tenure has been a failure and someone should pay a price. Menendez needs to think seriously about whether it will be Bernanke, Geithner and the rest, or whether it will Menendez himself in 2012.
Furthermore, he has resisted regulations that are obviously needed and tried to block a bipartisan attempt to find out what the Fed is actually doing. (They are literally making trillions of dollars in loans with no oversight.)
In testimony before the Senate Banking Committee today, where he's seeking re-appointment as the Fed's chairman, Bernanke called for cutbacks in Medicare and Social Security even as unemployment rises and the middle class is endangered.
Citing legendary bank robber Willie Sutton, Bernanke said of the retirement and health care funds that are the legacy of the New Deal: "That's where the money is." ...
Bernanke reminded Congress that it has the power to repeal Social Security and Medicare.
"It's only mandatory until Congress says it's not mandatory. And we have no option but to address those costs at some point or else we will have an unsustainable situation," said Bernanke.
This testimony tells us Bernanke will use his authority--given by Menendez--to try to undermine and dismantle Social Security and Medicare. (Raising the SS cap--with an income hole--would solve the SS problems and meet President Obama's campaign promises.) Menendez needs to plan for a Democratic solution to entitlement funding issues, not a right-wing one, and that means rejecting Bernanke now. And by the way, Menendez should let his friends in the White House know that the base is already suspicious that Obama plans to attack Social Security, and he should let them know that this "gaffe" is going to hurt Obama if nothing is done.
