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St. Louis Fed Sponsors YouTube Video Contest

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Besides Barack Obama, Lady Gaga and James Franco, it’s hard to imagine anybody more in the news these days than Federal Reserve Chairman Ben Bernanke.

The gray-bearded Fed Head dominated the news again this week as he appeared before our representatives on Capital Hill. Bernanke spoke before the House Committee on the Budget, where he repeated his mantra: QE-2.0 is proving a success.

“Indeed, a wide range of market indicators suggest that the Federal Reserve’s securities purchases have been effective at easing financial conditions, lending credence to the view that these actions are providing significant support to job creation and economic growth,” our main man at the Fed said. (HT: Yardeni Research)

Meanwhile, Bernanke’s Texan nemesis -- Congressman Ron Paul, who wants to abolish the Fed altogether -- convened his first meeting this week on the role of the Fed as chairman of the House Subcommittee on Domestic Monetary Policy & Technology in the Financial Services Committee.

Now Ron Paul, we’re guessing, might prove tough for Bernanke to win over: he has suggested that our central bankers made secret loans to Saddam Hussein in the 1980s, and that Fed money funded the Watergate break-in.

However, perhaps you have a kinder interpretation of our PhD-carrying policymakers and their role in our national economy. If so, then here’s your chance: enter the St. Louis Fed’s Youtube contest!

That’s right: The St. Louis Fed is sponsoring a YouTube video contest in which applicants submit an original video, illustrating the importance of an independent central bank. What makes independence for a nation's central bank important? Why should they steer clear of politics? How does independence affect inflation and economic activity?

First place: $1,000 U.S. Savings Bond.

Learn more about the contest here. For the tip, we thank Greg Mankiw.
POSITION:  No positions in stocks mentioned.