Bernanke before the road was shrouded in the clouds.

<P> Fed Chairman Ben Bernanke's re-election appear to have had a virtual certainty, Obama and congressional members have expressed considerable portion of his support. .But with the Democratic Party lost election, some members vociferously objected to the prospect of this issue seems adds the sort of uncertainty, with U.S. stocks fell for three consecutive days and therefore (according to "21st Century Economic Report"). .While Bernanke has indeed contributed to contain the crisis deepened, but his "helicopter money" policy of enormous controversy, and the administration over the accommodation, may affect his evaluation. .</ P> <P> experts in the Great Depression as Bernanke, in response to the crisis, its policies to a certain extent, to avoid the deterioration of the crisis and deflation hurt the economy. .As a reference is, after the Great Depression in 1929, when the Hoover Administration to take the "Smoot - Hawley Tariff Act," the gold into the United States, Europe and other obstacles to outdated policies, the deterioration of the credit crunch and the debt was .contraction, resulting in a serious deflation in the United States. .Bernanke was fully aware of the serious crisis exacerbated the destructive power of deflation, it took a bold "helicopter money" strategy to ease the deflationary pressure. .</ P> <P> However, Mr Bernanke seems to ignore, after the outbreak of the crisis, the United States and other countries caught in the financial market liquidity black hole, but not the sense of the base currency liquidity obstruction. .The current international financial market credit crunch and debt deflation, is a typical money market credit crunch and the money multiplier declined. .The Fed could issue to increase market liquidity, the monetary base, but can not change the decrease in demand for private sector credit contraction caused by the situation. .Federal Reserve injected a lot of liquidity, in part for financial institutions hoard, some financial institutions become excess reserves at the Fed, some into commodities and emerging markets create new asset price bubble. .</ P> <P> to inject massive currency market, Bernanke, one-sided emphasis on the early Great Depression, deflation in the United States appear, but the characterization of the Great Depression deflation, rather than root causes. .Recently, Bernanke began to converge by means of open market liquidity, reflected quickly at the beginning of his own note-issuing policy reflection. .Keynesians to second bottom in 1937, the U.S. economy out of government stimulus premature to blame; to the same logic, we can also believe that during the Great Depression of the second bottom and now facing the same risks, it is the government doing good .caused by hand into the heart of the market. .</ P> <P> Bernanke issuing speeding strategies, the United States faces looming crazy bubble and keep inflation risk. .Perhaps Bernanke and his predecessor, Alan Greenspan faced the same embarrassment, that is, either a burst of applause when, after leaving office but was accused of being an important reason for the crisis. .Apparently he did not want to see. .</ P> <P> even if the second term, Bernanke still faces many challenges. .As mentioned earlier, Bernanke response to the crisis "helicopter money" policy, strictly speaking, not the U.S. economy turned the corner; second term, he is likely to face another former situation: 1980, Federal Reserve Chairman Waugh .Park office at the beginning, they face the disadvantage of high inflation. .To overcome this dilemma hidden, Bernanke need to show the courage to risk universal condemnation Volcker year to establish monetary policy inflation target, which is also in the short term will face a lot of questions. .The difference is that with Volcker, Bernanke to clean up their own stalls brewing, while Volcker is a former correction of the fault. .</ P> <P> whether Bernanke to leave or stay, he led the Fed is able to avoid further deterioration of the crisis. .His achievements should be affirmed. .But the most controversial is the deterioration of the crisis eased after Bernanke acted on the Obama team toe, or even contrary to the spirit of the independence of the risk of the Federal Reserve --- try using monetary policy to help Obama ."do good hand" directly into the heart of the market. .A loss of independence of the Fed for the world, obviously Ben Bernanke than shrouded in clouds of uncertainty on the future looked even more pessimistic. .(Shanghai scholar Liu Xiaozhong) </ P>.