By James Kwak
In a Congressional hearing today, Representative Paul Ryan (R-WI), chair of the House Budget Committee, strongly criticized Federal Reserve Chair Ben Bernanke for failing to contain the severe inflation threat posed by the Tooth Fairy.
A year ago, out of nowhere, the grotesque suggestion to "resolve" the US debt ceiling with a platinum dollar coin came, and like a bad dream, mercifully disappeared even as the debt ceiling negotiations dragged until the last minute, without this idea being remotely considered for implementation, for one simple reason: it is sheer political, monetary and financial lunacy.
The stakes surrounding the plan to mint a platinum coin to circumvent the debt ceiling continue to rise. Now Wall Street is clearly getting interested. Ethan Harris at Bank of America is out with a new note titled The Trillion Dollar Tooth Fairy, which blasts the idea:
Three things that Ben Bernanke doesn't believe exist are Leprechauns, the Tooth Fairy and Stagflation. He has totally relied on specious theories like output gaps and a very high unemployment rate to keep inflation in check. What he fails to realize is that an increase in the money supply doesn't always engender job growth or ...
Carnivorous ants, poisonous plants, meteor showers, and underground gas vents have all been considered as possible culprits of "fairy circles" — bare patches of soil bordered by a ring of taller grasses and found dotting the desert grasslands of Namibia in southern Africa.&nbs