The Fed’s vice chair Donald Kohn appears to have gotten into the laughing gas, judging by the admissions he made this morning in front of the Cato Institute. A few gems rounded up off the wire by FT Alphaville:

*DJ Fed Kohn: Doing Both Monetary Policy, Quantitative Easing

*DJ Kohn: No Reason Fed Can’t ‘Blow Up’ Size Of Balance Sheet

* RTRS-Kohn says Fed has acted on the “fuzzy border” between monetary and fiscal policy

*RTRS-Kohn says paying interest on reserves hasn’t worked as well as expected to control Fed funds rate

*DJ Kohn: US Economy Declining

Chairman Kohn, we don’t know what’s gotten into you, but you hereby win the LOLFed Award For Admitting Everything Is Fail. Quantitative easing, stepping over the line (mark it zero) between monetary and fiscal policy, an economy in decline and a textbook trick that isn’t effective? 100% more honesty than we expect from the Fed, and for that we salute you.