Busted: Bankers and The Global Economy

January 17, 2008

The Federal Reserve: Banking is Dirty Work

“Too many bubbles have been going on for too long…The Fed is not really in control of the situation.” Former Federal Reserve Chairman Paul Volcker admits the economic situation in the U.S. is out of control. Federal Reserve Bankers are generally secretive and like to speak “off the record”. When they speak, it is because they feel confident in what they say and can safely trust their judgment.

bernankenigelparry.jpgThe “new” Federal Reserve Chairman Ben Bernanke is cautious in what he says. According to the press, most of his interviews are “off the record”. After years of following what the Fed says, I have noticed that quotes are generally pretty vague in nature and typically news that is readily admitted after the fact. In a speech to the Women in Housing and Finance and Exchequer Club in Washington, D.C., Bernanke said the Fed was concerned about oil prices, housing issues and other threats to the economy. The Fed would be watching carefully and ready to act quickly. The New York Times surmised that concrete statements aren’t really Bernanke’s strong suit. Playing it safe in public is what the Society of Bankers likes to do. I have few observations on that topic later.

According to the inside press, Bernanke has a more democratic approach to his leadership than past chairmen. Bernanke is a consensus man upfront and balances the consensus with his comfort level on a particular process. In his words, he seeks “the best outcome”. In Bernanke’s view, the problem in the credit market is very tenacious. He counters that the Fed “has a good hold and understanding of the situation.” In public, Bernanke is a patient man. Some are not so kind or patient with the press. Federal Reserve leader Richard Fisher is critical of the close examination of statements that come from the members of the Fed. In his view, the close scrutiny is tantamount to surgery.

Bernanke is no slouch in the credentials department either. Bernanke is a former presidential chief economic adviser, Princeton University economics professor and policy failures expert. It is good to be an expert in something. The Bush Administration has had its share of failures, especially in the area of monetary policy. They need his help.

Criticism of Bernanke’s actions is the Federal Reserve’s hesitation to trim rates. He waited out the summer of 2007 and scrunched the benchmark interest rate by a half point to correct for the housing and credit crunch back in September. The reduction was the Federal Reserve Bank’s first cut in four years. Continuing to trim those rates hasn’t made much difference with the beginnings of the early fallout of the economy late last year. Goldman Sachs expected gross domestic product to drop, indicating a recession, in the second and third quarters of 2007. In reality, the recession is old news. Some of us just hadn’t felt it yet and the administration was asleep at the wheel. As consummate insiders, the Society of Bankers were wise to the news some time ago. Bernanke and the Federal Reserve aren’t in reality working just for the good of this economy. The Fed has its own internal agenda as a corporation that is part of a larger agenda within the world Federal Reserve banking system.

Generally-unnamed economic experts that missed the beginnings of the recession are suggesting the cure. Today the cure is longer unemployment insurance, income tax rebates and creating ways to boost consumer spending. The doctor bankers of the Federal Reserve love to play it safe and are careful not to offend the sensibilities of their only patient. The U.S. Branch of the Federal Reserve is paid to take care of one big patient. That patient is the government of the United States. As a caring and compassionate doctor, the Fed is waiting to see what the patient, Uncle Sam, wants to do about “his” situation. Mum is the word until the patient screams. The patient has screamed.

Our friendly Society of Bankers will throw in their two cents and offer a few minor tweaks and it will be off to the races again with more money in the coffers while the money lasts. The money we spend is an illusion. Federal Reserve bankers clean up all the way around, mitigating perceived losses regionally and posting gains to their ledgers while they influence and food-court-image-1.jpgmanipulate the world market through the world Federal Reserve banking system. They hold the gold and parcel it among themselves as they like while they watch us perform like a German cuckoo clock. If that doesn’t do it for you, think of one of those Visa commercials with the German-inspired efficiency music in the background as we spend ourselves into oblivion. Uncle Sam is suffering from senility through years of neglect to “his” own reasoning. This childlike senility makes this country highly open to suggestion and expectations are continually raised and promises made. Being a banker can be a little stressful because of the hand holding. Don’t you worry my friend! Hand holding and maintaining overall control is what the World Banking System does best.

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