Ben Bernanke held the very first press conference in nearly a century of the Federal Reserve having dominated our banking system. His excuse for changing this “ignore the man behind the curtain policy” was that he believes in transparency at the Fed but at the same time the Fed has been dragging out the court appeals (which they have been losing) involving Freedom of Information Act requests from news outlets (mostly Bloomberg).
The Fed under Alan Greenspan committed a host of unethical and perhaps more accurately criminal acts of conspiracy with the Bush Crime Family over many years to further his Ayn Rand belief that the rich are rightly the privileged few. Greenspan literally built a house of cards or paper dollars to create a system where the rich could extract trillions of wealth from the middle class under the guise of a “modern” banking/investment system that made the conventional manufacturing economy obsolete.
When the house of cards utterly collapsed in 2008 after Greenspan had conveniently retired his successor simply issued new cards. Trillions and trillions of them to prop up banks and major corporations that by any normal standard were simply bankrupt. This was of course done with the full blessing of the Bush Administration and rubber stamped by the Congress with TARP program which was created by Congress under threat of Martial Law from Bush.
The TARP program at 700 billion was chump change compared to the bailout from the Fed and the fact that the TARP has been largely paid back is completely irrelevant. It’s hard for most people to wrap their heads around the concepts used by the Fed to justify what they do and for good reason. It’s all crap.
The rich privileged class the Fed represents and acts on behalf of do nothing, produce nothing and consume much. The fact that the economy continues to operate is simply a parasite/host relationship and not because the Fed is trying to meet its legal mandate to control inflation and maintain employment. In fact they don’t even make any pretense of doing anything about 7 million workers who lost their jobs in the crash or the 5 million who have come to working age since who don’t have jobs. They act as if unemployment were some act of god completely unfathomable to mortal man. Unregulated predatory capitalism is a given to them and not the problem.
At the current rate of “recovery” these 12 million jobless won’t be completely integrated into the economy for another ten years. (this time frame prediction is also baseless) If it were to happen however, this is about how long it took to recover from historical “bank panics” (what they called depressions before there was a Federal Reserve).
The Fed was created to prevent bank panics but did nothing to stop the mother of all bank panics in 1933 and FDR dictated Fed policy thereafter in order to achieve a recovery and the New Deal kept the system on an even keel for decades. The New Deal has been repealed and we are living with the result. While the Fed halted the bank panic of 2008, they aren’t likely to stop the bank panic of 2012 and it could be a civilization ender. (footnote, it might take longer than 2012, the Mayan accountants could be off a year or two) www.Prairie2.com