Even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed’s thrall, the economists missed it, too.
July 25, 2012 C-SPAN
Representative from Texas Dr. Ron Paul questions Timothy Geithner about the LIBOR SCANDAL, the Fed, interest rates, and American taxpayers paying elite bond traders to serve (and become very wealthy) as intermediaries between the Treasury and the Fed.
A question on the minds of many people today (increasingly those who manage or invest money professionally) is this: How do I preserve wealth during a period of intense official intervention in and manipulation of money supply, price, and asset markets?
While the B.R.I.C.S nations are contributing to the I.M.F.’s funding with the purpose of shoring up the global financial system, they’ve stipulated that they want more power in the I.M.F.
During the 1992 presidential campaign, former President Clinton’s rallying cry was “It’s the Economy, Stupid.” He sang it to perfection and won the election. Today, the smart politicians (and economists) should realize that “It’s the Money Supply, Stupid.”
Bottom line: A roller coaster economy brought to you by Ben Bernanke by his first draining reserves and his then expanding them is the path we are on.
Federal Reserve Chairman Ben Bernanke's new policy of openness has much to recommend it, in that it gives the markets information about current and future monetary policy that removes some of the guesswork of years past. But now that traders and investors have better insights into the thinking of Fed policy makers, they don't seem to be acting on that knowledge. Seeing is not believing, apparently.
"Collectively, the central bankers of the world might agree that they do not want gold to be remonetized. Individually, it is in their interest to defect from this consensus. As the American Century decays, individual motivations tend to become more prominent. You and I are not in a free market - but the central banks are."