Ludichrist

Simon Johnson looks at the "endangered" Ben Bernanke re-nomination and suggests starting over with a *brilliant* alterna-Fed Chair who would be the "popular" choice, who would be supported by "the markets" and who would "potentially" - but not necessarily - be opposed by Republicans who probably wouldn't be able to stand athwart the wave of acclaim that would greet Johnson's proposed replacement. Who is this Lightworker? Check it and see: Paul Krugman For The Fed

The support for Bernanke in the Senate hangs by a thread – with Harry Reid providing a message of support, albeit lukewarm, after the markets close. The White House is telling people that if Bernanke is not reconfirmed there will be chaos in the markets and the economic recovery will be derailed. This is incorrect.

The danger here is uncertainty – the markets fear a prolonged policy vacuum. Fortunately, there is a way to address this. Ben Bernanke should withdraw and the president should nominate Paul Krugmanto take his place.

Yes, Johnson means THE Paul Krugman, not a different Paul Krugman who is not the hyper-partisan economist whose columns carry more data manipulation than those of a 15-year old virgin bragging about how many times he's "scored."

Krugman would, of course, be a disastrous Fed Chairman. For one thing someone as hyper-partisan as he would be completely inappropriate for what is supposed to be a politically neutral institution. Policy-wise, he would inevitably resort to inflation to achieve an ephemeral level of "full employment." And, his tendency towards hyperbole and wild emotional swings (remember he has gone from "Obama = progressive Reagan" to "He was Not the One We Were Looking For " in just over a year) would mean his public pronouncements would, ahem, roil the markets.

It's easy to imagine a (obviously) desperate Obama looking to Krugman as a Treasury Secretary or some other sort of economic policy position. But, Fed Chairman? The mind reels.