For a President who was voted in promising change, it sure looks like business as usual for the Wall Street banksters and their cronies, when it comes to the Obama Administration. It was "more of the same" today as President Obama announced he was reappointing Ben "Helicopter" Bernanke as chairman of the Federal Reserve.
What this country needed was a return to the "good old days" of the Federal Reserve when it was headed by William McChesney Martin, the longest serving chairman of the Federal Reserve. He believed that the job of the Fed was to take away the punchbowl just as the party gets going.
This is stark contrast to the Federal Reserve under Alan Greenspan and Ben Bernanke, who believe in always keeping the punchbowl full, no matter how "drunk" people get at the party and how dangerous their behavior becomes toward society at large.
The curious thing to me is how little or no debate took place over such a dramatic change in Federal Reserve policy. This shift in policy coincided with the replacement in the monetary policymaking process of old-style, market-savvy central bankers (often without formal economic training) with academics like Ben Bernanke.
By the way, William McChesney Martin was a career stockbroker who graduated from Yale in English, not Economics!
This new breed of economists in central banks have little real-life financial markets experience. And they are wedded to the crazy idea that markets are efficent, despite the recurrence of bubbles throughout history - a phenomenon that makes nonsense of this belief. Kind of like still believing that the Earth is flat.
On top of that, these acadmic central bank economists keep their focus solely on consumer prices and the phony CPI index. And they completely ignore the truly dangerous type of inflation - asset price inflation.
Expect more of the same -- horrendous monetary policy, blowing larger and larger bubbles (can you say Treasury market bubble?). The consequences will indeed be dire for the future of the United States.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment