WARNING: Hiding Behind The Illusion Of Today’s Latest Stock-Market Records Is An Economy And Markets That Are Peaking, Near Crashing. Yet Our Leaders Are In Denial.
March 13th, 2013
By Paul B. Farrell, MarketWatch
History is accelerating, the American economy is slowing and Fed Chairman Ben Bernanke is the accelerant.
Seems like just yesterday his mentor Alan Greenspan admitted to Congress that he “found a flaw” in the “free market ideology” that drove America’s monetary policy for his tenure as Fed chairman. Yes, “flawed;” it took him and America to figure out that self-regulated free markets did “not work.”
Unfortunately, nothing’s changed: Greenspan handed off to Bernanke. And that same flawed ideology is still misleading America’s central bank and the world’s 192 central banks headlong into another disaster bigger than 2008. And the chain of command over the evidence is clear: Greenspan starting with Reagan. Then Bernanke with George W. Bush, adding another eight years of failed monetary and fiscal policies.
Now, Bernanke and Obama policies continue, favoring banks with their high-speed, cheap-money printing presses. And if America’s accelerating debt is the metric, historians are already judging Greenspan harshly. In the future, history will be even harder on Bernanke: He never learned the lesson, that Greenspan’s failed free-market ideology severely damaged the American economy.
Ultimately, however, history will be harshest on Obama. As we wrote four years ago, the reappointment of Bernanke was Obama’s “biggest domestic policy blunder.” “Black Swan” author Nassim Nicholas Taleb was “stunned … I cannot believe that we, in the 21st century, can accept living in such a society. I am not blaming Bernanke, he doesn’t even know he doesn’t understand how things work.”