Busted: Bankers and The Global Economy

June 17, 2009

Federal Reserve Discovers Deviancy

affordable bankingAbout 16 years ago, Senator Daniel Patrick Moynihan offered a striking view of the degradation of standards in society. He observed that deviancy was measured as increases in crime, broken homes, and mental illness. These reached levels never seen by earlier generations in the U.S. As a means of coping with the onslaught, society often sought to define the problem away. The definition of customary behavior was expanded. Actions once considered deviant from acceptable standards became, almost immaculately, within bounds. In the case of the authority by the Federal Reserve, deviancy has been all but ignored.

After opening up with a classic comparison of standards in society, Kevin Warsh has other observations about the Federal Reserve that would lead one to wonder if central bankers are really lost, but couching this misdirection as a new philosophy of public exploration of purpose and policy. No such luck fellow Americans and globalists.

fed_warsh_kevinWarsh asks: “Will deviancy be defined down with the understanding that a rare crisis is the price for dynamic, robust economic growth?” The Federal Reserve is exploring new philosophy of social and monetary control, but is still thinking within the same old box of capitalism and economic growth via Wall Street and bankers instead of the real economy where the mainstream actually live and grow their lives.

Even Warsh recognizes that over the last few decades that America has not lived in a golden age. He says that periodic, cyclical weakness occur. There were lessons to be learned. Did we learn lessons at any point along the way? Now Kevin Warsh is asking bankers and economic pundits what they want in a new ‘touchy-feely’ approach of philosophy to the recent banking crisis. That’s right…this was a banking crisis, not just another recession. If bankers had not become economic and social deviants, the U.S. and the world would not be in this recession.

Still, Warsh is asking his friends and banking associates whether they choose stability or performance. What do you think bankers will say? The Fed is not really talking change, just more of the same boilerplate economic policies, unchanged for decades and augmented with more control measures and power for central bankers. The Fed doesn’t seek to reform anything, but has plenty to say that supports the status quo. The U.S. and the Fed, through the brotherhood of central bankers, has misused a position of trust. Now the Fed is printing vast sums of money (credit) that will ultimately tumble the dollar and create a larger crisis. ~ E. Manning


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