Saturday, August 03, 2013

Larry Summers - Obama's Insurance

I do not have 'chops' in weighing on the raging debate of Left - who is better suited to replace Ben Bernanke at Fed, Larry Summers or Janet Yellen. It is sad that we on Left have come to a state where we think a bureaucratic contraption like Fed as our 'nirvana' instead of undertaking the true path of democracy - changing people's lives by winning elections and enacting change. Notwithstanding the suicidal politics of 'self-destruction' on Right; at least they have the 'game on' their side: the game of trying to influence 'minds of majorities'. But Left in America is all engulfed in this instrumentality of Fed rather than waging the politics what it is supposed to be - make change in people's lives by a democratic process.

May be there is a reason why Left is resorting to such an administrative means to effect agenda. We all can see what Congress has descended into - an active agent to bring down Americans, to behave in ways which will make lives of Americans harder, more miserable; all in the name of misleading mantra of 'serving Americans'. 

No wonder the President then wants an insurance in having an activist Fed to limit the damage to be enacted by 113th and 114th Congress. Fed, and in having a familiar leader like Larry Summers in running this Fed who has proven balls to stand the completely destructive agenda of Congress; becomes a natural 'insurance' in the looming disaster what these Republicans can bring onto America.

The argument is neither about demonstrated independence of Janet Yellen nor about gender imperative in having the first female Fed Chief. It is all about having the 'gall' to take on messers Sen. Ted Cruz, Rep. Paul Ryan and all those white Republican males who are all callus about the kind of pain they would inflict on Americans while they chase Ayan Rand style Libertarian ideological purity.

Agreed, that is politicization of Fed - expecting Fed as the last bulwark against the 'barbarians knocking on the gate'. But imagine things going wrong and Senate as well flipping to the Red Column in 2014 and these Republicans passing bills after bills in slowing American Economy further. That is the nightmare scenario against which President Barack Obama might be needing an insurance and he finds that in the abrasive, 'propelling head' Larry Summers.

During the dire days of the first half of 2009 recession when American Economic Engine was shedding more than half million jobs per months, America's Banks were totally under the siege. Brightest minds on Left like Paul Krugman, Simon Johnson were all with the deafening chorus of 'nationalization of banks'. But trio of Geithner, Summers and Bernanke stood up to the challenge by devising the 'stress tests' and enabling of Americans Banks to raise Capital from Market in toughest of market circumstances. That single act is what differentiates America from continued descend of European banks and shell Banking of China; it was that act of 'not nationalizing Banks and yet reviving Americans Banking sector using private means' which separates America from downward spiral of Europe. Summers stood tall then along with Geithner and Bernanke. He again pulled off to get some concrete 'stimulus' enacted when Christina Roemer - howsoever well intended - would have failed to get any stimulus through Congress for the lack of political acumen. That is the acumen President Obama might be desperately looking and seeing in the proven material of Larry Summers - the guy who would have 'balls' to stand Derrel Issas and Ted Cruzes of the world to keep ploughing ahead American Economy in all these treacherous circumstances.



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