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.
For further insights on this issue please read Economic Contractions in the United States: A Failure of Government co-authored by Charles K. Rowley and Nathanael Smith. The book sells at $12.00 plus shipping from http://www.amazon.com.