Ellen Brown: Bernanke’s Cheerleader
by Gary North
Ellen Brown is a lawyer. Lawyers are trained to settle a case when they are losing. Brown just settled with me.
She has just switched sides. Instead of becoming an Austrian School critic of the Federal Reserve, she has become its cheerleader.
This is Bernanke’s loss and the Tea Party’s gain.
In my criticism, I kept saying that she is a leftist. She wants a welfare State funded by zero-interest loans from the government. She wants a big Federal government. She does not care how we get it. Now that the FED will inflate enough to pay for it, she has switched sides. Her primary commitment was always to the welfare State, not the battle against the FED.
In my detailed critique of her economics, I made it clear that she was never a conservative. Now she proves it. She praises Bernanke and the FED. She says that QE2 is not fiat helicopter money, and that Bernanke is not “Helicopter Ben,” which he obviously is.
Hard to believe? Let me quote her.
A Bold Precedent
QE2 is not a “helicopter drop” of money on the banks or on Main Street. It is the Fed funding the government virtually interest-free, allowing the government to do what it needs to do without driving up the interest bill on the federal debt – an interest bill that need not have existed in the first place. As Thomas Edison said, “If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also.”
The Fed failed to revive the economy with QE1, but it could redeem itself with QE2, a bold precedent that might inspire other countries to break the chains of debt peonage in the same way. QE2 is the functional equivalent of what many countries did very successfully before the 1970s, when they funded their governments with interest-free loans from their own central banks.
Countries everywhere are now suffering from debt deflation. They could all use a good dose of their own interest-free national credit, beginning with Ireland and Greece.