Monday, August 24, 2009

Bernanke Will Get Another Term As Fed Chairman

It's surely the change we can believe in.

Obama to Reappoint Bernanke as Fed Chief (8/25/09 Wall Street Journal)

"President Barack Obama will announce the nomination of Ben Bernanke to a second term as Federal Reserve chairman on Tuesday, opting for continuity in U.S. economic policy despite criticism in Congress of the low-key central banker's frantic efforts to rescue the financial system.

"Mr. Obama's decision had become a subject of growing speculation and uncertainty in financial markets and in Washington policy circles.

"The president called the Fed chairman to the Oval Office Wednesday evening to offer him another term. Mr. Bernanke then flew off to Wyoming where he gave a spirited defense of his controversial policies at the Fed's annual meetings in Jackson Hole. Mr. Obama left for Martha's Vineyard, Mass., where he will deliver the news Tuesday with Mr. Bernanke at his side."

You can read the rest of the article by following the link above.

The Fed Chairman has been mounting a campaign in recent weeks to get reappointed. The media pundits have been split: those in favor, those against. Some, who are in favor, recommended reappointment because Big Ben was a much better choice than Larry Summers.

This reappointment by President Obama comes when the court orders the Federal Reserve to disclose the details of $2 trillion emergency bank loans under the Freedom of Information Act request by Bloomberg LP within five days.

It also comes when in the House of Representatives Ron Paul's Audit the Fed bill H.R. 1207 languishes even though it has now 282 co-sponsors, and when Rasmussen survey finds 75% of Americans favor auditing the Fed.

Even the Democrats in Congress express doubts about giving the Federal Reserve and its Chairman greater power via Obama's financial restructuring plan.

What do I think? I think Bernanke, along with Paulson, effective killed what was left of the free-market capitalism with their frantic plans starting early September 2008. Fannie Mae and Freddie Mac takeover by the government, same for AIG, letting Lehman Brothers go bankrupt and see the world seize up. He and Paulson (and let's not forget President Bush) paved the way for an autocratic statist government we have now.


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