Comments on: The growing clout of central banks Thu, 18 Jul 2013 20:14:19 +0000 hourly 1 By: amibovvered Thu, 20 Sep 2012 16:47:07 +0000 Right, Fed inflationary policy has over decades had the effect of steadily reducing long term capital and increasing short term capital to the point where productive capital evaporates. The country as a result has been reduced to third world status, exporting raw materials and importing finished goods primarily from Asia where there is an abundance of plants and machinery to produce them. The country can no longer afford to build factories and machinery to produce goods as the required long-term capital is no longer available due to the inflationary policy.

By: Gordon2352 Thu, 20 Sep 2012 14:56:23 +0000 By the way, I question the assumption being made that the central banks should be “independent”.


It literally gives the central bank the power of another branch of government, with no oversight whatsoever.

A central bank should be simply another government agency available to implement legislative decisions made by the “legimate” representatives of the people.

To do otherwise is to subvert the democratic process at a VERY dangerous point — its ability to affect the economy independently, and to wreak untold damage (for example, the Greenspan Fed
that allowed interest rates to decline to near zero for years for no reason at all, which resulted in one of the most massive speculative bubbles in history).

As I said above, do whatever is necessary to rein in this out of control Bernanke Fed before he manages to destroy our economy.

By: Gordon2352 Thu, 20 Sep 2012 14:39:33 +0000 Comparing the ECB and the Fed on equal terms is disingenuous because it is NOT a central bank — clearly, an “apples to oranges” comparison that make no sense.

Furthermore, the Fed CANNOT improve the US economy without comparable legislative action by Congress to support the Fed policy.

THAT is what is wrong, and why what Bernanke is doing will NEVER work, no matter how much money he prints.

The US economy is in a classic Keynesian “liquidity trap” and no amount of Fed intervention will help it to recover.

The real underlying problem, which you fail to disclose, is the massive job outsourcing that has been going on for decades, especially in the last 30+ years of free trade with China.

Congress MUST REVERSE the legislation enacted in that time period — specifically that dealing with trade and tax legislation that encourages the wealthy to make capital investments virtually anywhere in the world except in the US — or the US economy will NEVER recover, no matter how much faux money Bernanke pumps into the system.

This latest fiasco of targeting mortgage bonds is simply a massive transfer of debt from the already bankrupt Fannie Mae and Freddie Mac to the federal government debt.

It will NOT help the housing market to recover because there are NO JOBS.

Without jobs, there can be no housing recovery.

The Fed, especially the Bernanke Fed, is a “clear and present danger” to our economy.

Do whatever is necessary to shut him down, preferably before he does so much damage that we can never recover.

By: Mott Wed, 19 Sep 2012 19:38:18 +0000 If you haven’t noticed, people started saving for a change and a bit less interested in borrowing and spending.

Is there a way the fed can lower the debt without involving public, instead of enticing the public to borrow and spend?

By: reality-again Wed, 19 Sep 2012 14:28:10 +0000 And how do American businesses react to the Fed’s Q1, Q2, Q3 and promises for unlimited money printing?
Just walk around in US cities, towns, and malls, and see if the number of vacant commercial properties has come down since 2009…
The business community (I.E. real world, not financiers) just scoffs at these Fed actions and promises, and hunkers down.
Perhaps they realize something that Wall Street doesn’t?