We're not taking a clean coin and flipping it over and over again.
If people are depressed and scared, as they have been in Japan, there are limits to monetary policy. It comes down to people making personal decisions.
We feel like, number one, we are supposed to meet the ordinance.
There are a lot of reasons why, looking further out, a broadened base for the U.S. dollar would be positive. It would be good for the U.S. because it will make those countries more prosperous, more responsible, more stable. At the same time it does make us more responsible for them, which is a pretty big task to take on.
Imagine you stay in cheap hotels where the hot water doesn't work in the shower and you have to fiddle with the knobs to fix it. Sometimes it's too hot, sometimes it's too cold. And imagine you don't stay in the same hotel twice. That's the problem we face with monetary policy. It's crude, it's a fuzzy instrument and it's applied in a different circumstance every time.
There are a lot of people struggling, thinking that they need to do this and be involved in the new economy, and they have no idea what they are doing. That's all par for the course, and part of the normal process of any capitalist-driven economy. It's unfortunate, but it's reality -- shake out those that can't from those that can.
When we had the tax cut a while back, [people] put it in the bank. The Fed can open certain gates, but it can't necessarily force the water to go through.
Anything the central bank buys constitutes an asset and allows it to expand its liability of money supply.
If you look at the fundamentals of our economy -- is it mean, lean and flexible, does it have right ideas about how to produce -- all the good stuff is there.
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