Page A32: During the last 96 years, the Federal Reserve has played havoc with our economy and achieved what only a central bank can i.e. a steady depreciation of our currency. Today's dollar is worth 5 cents compared with the dollar entrusted to the FED in 1913.
The FED fixes interest rates at levels lower than those demanded by the market. This is a form of price control through credit expansion and causes business cycles and so many of our economic problems, generating malinvestment, excessive debt, and the stock, bond, commodity and housing bubbles.
Mr. Bernanke concludes :"America needs a stgrong (think "cartel"), with the so-called
"non-political"(think "Goldman Sachs") "and independent (think "secret") "central bank with the tools to promote financial stability (in the midst of a horrendous financial crisis" "to help steer our economy to recovery without inflation. The writer is a Republican from Texas, a member of US House of Representative. I have detected such negativity.
Page A20: Mr. Bernanke is likely to acknowledge that joblessness is unacceptably high, showing that the FED considers unemployment to be its foremost challenge in the near future. FED leaders expect the unemployment rate to be in the 9% range at the end of 2010 and inflation to remain low hopefully. Let us wait and see the empirical evidence next year.
US Monetary Policy to be relevant to China's Monetary Policy: On page A33: We should give the FED the tools it needs so that the unwinding of the next AIG doesn't need to result in an unjust enrichment of stakeholders. (My uncle was an auditor for AIG for 3 decades+ and he passed away at the age of 99 in Shanghai years ago.)
Warren Buffett considers Bernanke, Paulson and Geithner as heroes for their selfless efforts. "At the time, I called it an economic Pearl Harbor, and in the end we got through Pearl Harboer," Buffett told CNBC. Bernanke, Paulson and Geither were truly the Committee that saved the world. They should be thanked, not trashed. I am inclined to endorse such judgment.
Francis Shieh a.k.a. Xie Shihao , a witness of economic happenings in USA to be reflected to the world but the readers may have your own assessment.
Thursday, December 3, 2009 at 11.52 a.m.