The Federal Reserve: Instigating Crisis Since 1913
Meet the system responsible for the major financial blunders of the last century.
Here's a Harvard-trained economist who's spent his entire life in academia and government service. As an "expert" on the Great Depression, Dr. Bernanke is 100% wrong in his assessment of its causes. He believes the Depression was caused by the Federal Reserve reducing the money supply in the early 1930s. He should talk to the Alan Greenspan of 1966. The Federal Reserve caused the Great Depression through its easy-money policies during the 1920s. The expansion of the money supply led to an unsustainable credit-driven boom. (Hmm. Does this remind you of any similar instances?)
In his famous 2002 "Helicopter Ben" speech, Bernanke previewed exactly what he'd do as Federal Reserve Chairman in the current economic environment. He has followed the script to the letter. He has printed over a trillion dollars in the last year. Tax cuts have been rolled out. The dollar is being devalued. The only thing left is confiscation of gold. Is that next?
Despite his Ivy League education and all of the supposed brilliant resources at his disposal, Bernanke has shown a remarkable ability to not see the housing bubble or the collapse of the financial system. He was convinced in 2005 that the housing market was strong and healthy. He was sure that the subprime problems were confined and wouldn't spread into the greater economy. He now assures the public that he'll know the proper time to withdraw the monstrous amount of stimulus he's pumped into the world economy before hyperinflation takes hold. Does his track record give you comfort that he'll correctly figure out the right time to withdraw the stimulus?
After promising a more transparent Fed, Bernanke has done the complete opposite. He continues to withhold the names of all financial institutions that have borrowed from the Fed and won't reveal the worthless collateral that they've put up for those loans. The Fed has lent in excess of $2.2 trillion to banks, yet they've refused to reveal any information regarding these loans. Bloomberg News has sued the Fed under the Freedom of Information Act to force them to reveal where $2.2 trillion of taxpayer money has gone. Investment Manager Ted Forstmann's opinion was, "It's your money; it's not the Fed's money. Of course there should be transparency."
Representative Ron Paul has introduced HR 1207 which would have the GAO audit the Federal Reserve every year and issue a report to Congress. Every public, and most private companies have an annual independent audit. It's a reasonable and smart thing to do. Operational weaknesses and fraud are often uncovered in these audits. The bill has 282 co-sponsors. Ben Bernanke -- "Mr. Transparency" -- wants no part of getting audited. Operating in the shadows is preferable. The Fed has proven to be anything but independent, stability isn't the first word that comes to mind when discussing our financial system, and the dollar has lost 95% of its purchasing power since 1913.
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