Bernanke and the Buck

 Back in early 2008 we were a bit alarmed by the signals the credit markets were sending and linked to some Federal Reserve papers to show what the Fed would do in a worst case situation:
Monetary Policy When the Nominal Short-Term Interest Rate is Zero.
Monetary Policy in a Zero-Interest-Rate Economy.
The worst case struck with the fall of Lehman,the rescue of AIG etc. later that year.

Since then we haven't posted nearly as much on Central Banks, preferring pictures of cats other topics.
Now I'm getting interested in the Fed once again.
Here's the etymology of 'testimony'. Although the Latin root for both 'witness' and 'testicle' is 'testis', it is unlikely that the ancient Romans grabbed their privates when swearing an oath.
Ben on the other hand...

Kudos to History Squared for a nice catch:

...Central Banking:
Bernanke pointed to the benefits of devaluing the dollar to the tourism industry, which shows up as exports, and benefits the trade deficit figure.

• More evidence he’s specifically targeting dollar devaluation.

Bernanke mentioned using the REPO rate instead of the LIBOR

• A research piece by the NY Fed studied the REPO rate around the 2008 crisis, then concluded the REPO rate should be manipulated artificially lower along with the Discount Rate. So by substituting REPO for the LIBOR, it merely transfers the illegitimate manipulation from private banks to the central bank , therefore making it legal, albeit still disgusting.

Earlier:
What Did the FOMC Mean By "New Tools"?