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Wednesday, December 16, 2009

Mr Bernanke, what are you going to do now? Disneyland?

Time named their Person of the Year this morning. On the way into the office today I heard this quote which struck me as one of the biggest reasons for the title and the biggest problems with his position (my emphasis)

Bernanke is the 56-year-old chairman of the Federal Reserve, the central bank of the U.S., the most important and least understood force shaping the American — and global — economy.

It is the “least understood” part that is the most serious problem. Without proper oversight, there is no way to tell how good or bad a job the Federal Reserve is doing. And in recent times the Fed has told both the Executive and Legislative branches to just take a hike when asked to review the books. Its a rogue entity which does what it wants.  That is the reason it is the most important force in the global economy. But without understanding there is no control. “Just trust me” is NOT an acceptable governmental policy.

The next time you hear someone complain about those evil bankers making off with tax dollars, ask them how the banks actually work. Then wait for the dramatic slack jawed pause as they comprehend their own ignorance.

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