Big Ben is no Hero
PIM of SPAIN | August 29, 2009 at 07:29 amby
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The facts do count and not the misgivings of publicity to influence general public opinion. According to the popular version, Ben Bernanke, has averted a Second Great Depression. When the crisis came in '07-'08, he calmly took out the text he had written himself: "Dummies' Guide to Avoiding a Japan-style Deflation", or a similar title.
Then, he followed his own theory...coolly...confidently...cutting Fed rates down to nearly zero, pushing Congress to pass a huge 'stimulus' bill, and even forcing Bank of America to take over Merrill Lynch. In this last event, he is accused of deliberately hiding Merrill's enormous losses and then threatening the Bank of America’s board with dismissal if they refused.
Because of Bernanke's swift and assertive action, “the nation's banking system held together during those critical weeks of late 2008. And because of his monetary and fiscal policies, all the worlds' economies are now in some stage of recovery. Stocks are rising. House sales are increasing. All the indicators point to a better world.”
In recognition of the fact that he saved the world, Ben Bernanke was given the nation's highest honor; Obama picked him to continue as head of America's central bank, the Federal Reserve...even though his predecessor, a Republican, appointed him.
But George W. Bush was just the beginning. Now, he's back in Texas. And the empire is still in business. What can the Fates do to us people? Give them Obama and Bernanke! Obama continues George’s imperial wars. And, with Bernanke as his sidekick, the two of them now set out to destroy the empire's finances. When they are finished, the dollar will no longer be the world's reserve money. US Treasuries will no longer be the safest, surest credit in the world. And Americans will no longer be the planet's richest people. Was this the CHANGE Obama put on his election ticket? It looks pretty much that another change was on voters’ minds.
Everyone needs a story. It's the way to understand things. Data are just data. Numbers are just numbers. Facts are just facts. Without the framework of a good tale to hold them together, they are worthless.
But the story that most people hear, and believe, is false. It is like GDP growth in the Bubble Era, it may sound right on the surface, but the real story is opposite to what is commonly believed.
“Bernanke 'wrote the book' on avoiding deflation. But he doesn't really have a clue what he is doing. He didn't really avoid a Second Great Depression. There isn't really a genuine recovery underway. And the world is not becoming a better place as a result of Ben Bernanke's exertions.”
Big Ben is making a natural mess into an unnatural one. He's turning a depression into a Great Depression. He's making a bad situation worse.
Anyhow time will tell us the truth.
In short, Ben Bernanke is no hero. And for now the economy is not recovering.
* Ben Bernanke earned the nickname “Helicopter Ben” for comments he made in a November 2002 speech, Deflation: Making Sure “It” Doesn’t Happen Here, delivered at the National Economists Club in Washington, D.C. More than six years later, some are to apply a new nickname, “Banana Ben,” to the Federal Reserve chairman.
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