"Should Bernanke be rejected, it is said, the effect on Europe's markets will be like that on Europe's monarchs when news arrived that Louis XIV had gone to the guillotine. ... But if rejection of Bernanke would cause turmoil in US and world markets, what does that say about the real stability of the system? And is it not time we stopped treating the Fed as a holy of holies? ... Under the Fed's custody, the US dollar has lost 98 percent of its value. ... Every monetary crisis is a result of Fed action or inaction, for the Fed controls the money supply", my emphasis, Pat Buchanan at Vdare, 26 January 2010, link:
I have said similar things for 30 years. Kill the Fed.
2 comments:
"...But if rejection of Bernanke would cause turmoil in US and world markets, what does that say about the real stability of the system?.."
The only real stability in the system comes from the massive amount of liquidity that Chairman Bernanke has injected into the system since the early part of his term.
Think of the economic system as a weak patient... the support comes from the intravenous feeding of the patient... if the support is withdraw too early the patient will go into decline...
All the patients vitality is gone.
Where'd it go?
:: Jobs shipped overseas.
:: Sky high debt loads on households
:: Sky high debt loads on local govs
:: Sky high debt loads on state govs
:: Sky high debt loads on fed govs
:: Massive spending on unnecessary wars
:: Massive financialization of the system.
:: Pension plans gutted
:: Wall Street looting
Kill the Fed? The big banks will never let that happen.
America is done. Go ahead try and revitalize her.
I think Bernanke did a lot to avert a deeper disaster. He has earned the confidence of the public. A rejection of Bernanke would cause a shake up in the world market, which should be avoided at all costs at this point. The recovery is still very fragile and the markets have seen enough uncertainty over the past two years.
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