From UBS' Art Cashin
An Unconverted Fed President – Richard Fisher of the Dallas Fed remains openly dubious about the chance of QE3 effectively lowering unemployment and sparking the economy. He repeated that in a terrific speech before the Harvard Club in New York on Wednesday.
Mr. Fisher is that rare combination, a plain spoken yet eloquent speaker. Here's a brief example from Wednesday's speech:
Since 1879, every chapel service at the Naval Academy concludes with a hymn that contains the following plea: “O hear us when we cry for Thee, for those in peril on the sea.” We cry for a nation that is in peril on the blustery seas of the economy. Our people are drowning in unemployment; our government is drowning in debt. You—the citizens and voters sitting in this room and elsewhere—are ultimately in command of the fleet that sails under the flag of the United States Congress. Demand that it performs its duty.
Just recently, in a hearing before the Senate, your senator and my Harvard classmate, Chuck Schumer, told Chairman Bernanke, “You are the only game in town.” I thought the chairman showed admirable restraint in his response. I would have immediately answered, “No, senator, you and your colleagues are the only game in town. For you and your colleagues, Democrat and Republican alike, have encumbered our nation with debt, sold our children down the river and sorely failed our nation. Sober up. Get your act together. Illegitimum non carborundum; get on with it. Sacrifice your political ambition for the good of our country—for the good of our children and grandchildren. For unless you do so, all the monetary policy accommodation the Federal Reserve can muster will be for naught.”
Pull up the whole speech. It may make your weekend. It's a great improvement on the election rhetoric from both sides.
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Of course, Congress would not be able to fund trillion dollar deficits if the Fed didn't monetize it all but who cares about the details. Good cop-bad cop sure looks better optically than thief-thief.
As a reminder:
Link to full Dick Fisher speech here.