Monday, November 30, 2009

Bernanke Has Positioned Himself And The Federal Reserve As Public Enemy Not Public Servant

I supported the actions of the Federal Reserve as a matter of practicality when this crisis first hit. But since then, it's resistance to reform of banks and the Federal Reserve and its silence on the disgusting behavior of Wall Street and resistance to breaking up large banks has instead turned into crooked capitalism. Extortion of society's values and money. The Federal Reserve must be overhauled. And so must the banking system. Ben Bernanke's recent op-ed in the Washington Post is ridiculous. Where has the Washington Post allowed equal space for a reasoned counter response? That Bernanke cites the general consensus on the role of central banking around the world as the basis for his positions is nearly criminal in my opinion. Since when do I, as an American, care at all what central bankers in corrupt countries like China, Russia and Abu Dhabi believe? None of these crooked "governments" and many more with central banks have a constitutional republic or any form of democracy. They are run by goons and hoodlums. Often killing millions upon millions of their own citizens and secretly sending people to far off prisons in the middle of the night. Frankly, I don't give a rat's ass what any central bankers in these countries believe is appropriate for monetary policy. And if that is what Bernanke thinks, I could care even less what his position is.

Bernanke offers no substantive defense of his position other than this is the way it should be. That the Federal Reserve sat on their hands while the economy melted up then came to the rescue of morally bankrupt behavior on Wall Street while doing nothing to help main street is unconvincing. His defense of the Federal Reserve is a little like killing little old grandmothers then paying on their life insurance policies. And indeed the Federal Reserve policies are indeed negatively impacting many of our elderly who rely on safe investments for income. Bernanke has taken away their income and instead has rewarded the crooks on Wall Street.

We should instead be investigating criminal activity on Wall Street including an audit of all activity of the Federal Reserve. Any engineer clearly understands when a system doesn't work, you do a root cause analysis and fix the root causes. Government hasn't really adopted this position but they have realized change needs to be made. That change right now is as foundationally political as it is anything else but let's be clear. The Federal Reserve in its current structure is part of the problem. Even if Ben Bernanke is a decent person, which I am sure he is. He's too much of a bureaucrat and central banking wonk with a very biased view. Because of his handling of this problem and his resistance to any meaningful reforms, he is center stage to being part of the problem. His resistance to change has put him center stage as public enemy rather than public servant.

Bernanke argues the Federal Reserve didn't do all it could to restrain financial speculators who destroyed much of our savings. Is that a joke? The Federal Reserve did absolutely nothing to restrain financial speculators. Then it rewarded them with a 100% return on their investments and saddled little old grandmothers with the bill. Grandmothers often unable to pay their heating bills and buy groceries. (I'm making a point if you cannot tell. The Federal Reserve needs to be transformed to serve the citizens of this country. And, most importantly, those least able to speak for themselves. That's mostly the impoverished as opposed to often vociferous grandmothers.)

Bernanke goes on to argue that Federal Reserve expertise is necessary to manage our complex financial institutions. This is the most heinous of his remarks. We don't need any regulation to oversee complex financial institutions. Instead, we need to ban the complexity of institutions meant to safeguard our money. To ban complexity used only to speculate with and ultimately lose our money. The money in financial institutions is society's money. It is not theirs to speculate with.

Finally, Bernanke argues the Federal Reserve is highly transparent. That is a joke.

Bernanke serves the wrong master. He is a public servant and takes an oath to serve the people. How has again enabling the crooks on Wall Street to again speculate with our money and pay themselves hundreds of billions of dollars in taxpayer money, courtesy of Ben Bernanke, for destroying our economy, in any way serving the people?

This video has floated around the net for the last six months. When one watches it, the first conclusion one must draw is the Federal Reserve is clearly broken and Bernanke is in a bubble of his own. One of a false reality.

posted by TimingLogic at 11:05 PM