In pursuing quantitative easing by purchasing commercial securities, Ben Bernanke has seriously jeopardized the political independence of the Fed. This may prove to be irreversible. By seeking increasing regulatory powers for the Fed, Bernanke is further jeopardizing its political independence. Congress will not stand aside while the Fed conducts industrial policy, invading its own perceived sphere of influence. Sadly, and I am sure unwittingly, Ben Bernanke is becoming a liberal fascist in the sense defined by Johan Goldberg in his recent book. In this sense, Bernanke is becoming perhaps the single most dangerous adversary in the United States of private property, limited government, individual liberty and the rule of law. One wonders whether his predecessor at the Fed, Alan Greenspan, remembers enough from his Ayn Rand days to recognize the major break in Fed behavior implicit in the post-August 2008 behavior of Ben Bernanke and the Federal Reserve Board that he chairs.
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December 2, 2009 at 4:23 pm |
I wonder if Bernanke’s efforts to unite state and financial capital may lead to the glove slipping off the fist. At some point the Fed is so close to financial firms that Americans see it as in cahoots with, rather than regulating, Wall St.
If Bernanke’s not careful, next time around the Fed chief may find himself in the dock right next to his banking CEO clients. Of course, that would be nice for the CEOs – a massive bureaucracy to absorb the shock of the Congressional hearings after the next financial crisis.
December 6, 2009 at 4:13 am |
But we need creative monetary policy to prevent deflation!
Scott Sumner make great points for that on his blog.
July 25, 2010 at 9:04 am |
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