Federal Reserve’s powers are too broad and it’s policies have caused more problems than solutions.
By Daniel at 6 December, 2009, 8:03 pm
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It clearly needs to be reformed or abolished. It’s record of interest rate management is pitiful and overly lax.
However, no one besides Bernanke would ever dare to abuse the money printing power of the Federal Reserve and ask for even more including paying banks interest to deposit into the Federal Reserve so they can go on shopping sprees to enrich their fellow bankers and shovel all the mess onto the US’s balance sheet through bond purchases and backstops. The reason he is afraid like no other Fed chief in history of disclosing their balance sheet is because it’s rotten to the core and sitting at over 40/1 assets to capital. That’s Bear Stearns territory. And that’s without a formal audit.
Ben Bernanke’s actions may be criminal or may not, we can’t tell. What we can tell is that he controls and this has more power than the President of the US who is elected. For in Washington DC power is the amount of dollars you have and lobbyists. He has unlimited dollars and lobbyists the President has a budget with little leeway and no lobbyists. The sad fact is you can make an argument that our country is no longer a democracy by looking into how the Federal Reserve conducts itself. We deserve better and so do our kids.
Bernanke made a travesty out of the Federal Reserve by breaking every legitimizing rule about money and accountability. It is hard to deny that and even harder to defend.
What I find troubling is how little our senate is looking into his confirmation hearing. I called both of my Senators just to see what they were thinking. And it is nothing. The staff acted as though I was talking about some low level appointment to the forestry service. It bothers me because whether Bernanke is or is not the problem is immaterial - he is not the solution.
Endless bubbles and a recession every five to seven years and the dollar’s destructive glide path does not provide evidence that the FED has met its mission.
The FED must be revised and improved.
- Moon Kil Woong
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