Bernanke Reveals His Hand
We might as well hand the keys of the liquor store to the village drunkard!
Ben S. Bernanke, praised, loved, adored, cherished, heeded and worshiped by so many at his installment as Chairmen of the Federal Reserve, now presides over one of the biggest, over-flogged dead horses the world has ever seen: the U.S. economy. Yes folks, he is yet another Naked Emperor, even if he doesn’t know it yet.
The US needs an overarching regulatory authority to prevent a repeat of risks building up unchecked across the financial system and exploding into economic crisis, Ben Bernanke said on Tuesday.
In remarks that echo calls on Capitol Hill for a powerful co-ordinating regulator in the US, the Federal Reserve chairman said the central bank would need to be involved in such a body, if not take the lead role itself.
In other words, he is saying (whilst rubbing his hands greedily behind the lectern):
What we need is a national government run by me.. err.. experts… economic experts. There being no economic experts quite as wonderful as central bankers, I hereby propose that my friends and I should control the government. It’s for your own good, after all.
Better do what he says, right? After all, he wears an expensive suit (or was it Made in China?) and has lots of powerful friends with lots of guns and stuff. Never mind that the Federal Reserve is probably insolvent, and the United States of America with it. Big oops!
What Bernanke is suggesting is effectively no change. Banks (central banks no less) were the ones who took the inappropriate risks. If the banks regulate the banks, which they did before, we can expect not less of the same, but more.