Yes, Fed boss Ben Bernanke has emerged as the most dangerous human on earth, far more dangerous than Egypt’s Mubarak, Libya’s brutal Gadhafi & every other oil-rich dictator. Bernanke rules a “monetary dictatorship” that will trigger the coming “third meltdown of the twentieth century.” Bernanki’s “reign of economic terror” will end. Just as those oil-rich dictators are blind to the economic needs of the masses and democratic reforms, Bernanke is blind to the “easy money” legacy that’s set the stage for revolution, turning the rich into super-rich, while the middle class stagnate, and peanuts trickle-down to the poor. Warning, Egypt also had a huge “wealth gap” before their revolution. Bernanke is the final egomaniac in America’s bubbling 30-yr wealth gap, where the top 1% went from owning 9% of America’s wealth to owning 23% during this 30-year dictatorship.
Bernanke’s ruling ideology is the culmination of a 30-year economic war that since 1981 has forged together Reaganomics for the super-rich, Greenspan’s toxic allegiance to Wall Street, the extremes Ayn Rand’s capitalist dogma, culminating in the toxic bailouts of Treasury Secretaries Hank Paulson and Tim Geithner, two Wall Street Trojan Horses corrupting government from within. For three decades this “monetary dictatorship” has caused enormous collateral damage, systematically sabotaging democracy, capitalism and the American Dream, while fueling the rise of our most dangerous new enemy, China.
When Obama reappointed Bernanke a couple years ago, Black Swan’s Nicholas Taleb was “stunned.” Bernanke “doesn’t even know that he doesn’t understand how things work,” that Bernanke’s economic methods are so inadequate they make “homeopath and alternative healers look empirical and scientific.” We called Bernanke, the “Captain of the Titanic” last year, warning that he was setting up the “third meltdown” of the twentieth century, predicted by Irrational Exuberance’s Robert Shiller, a coming crash worse than the 2000 dotcom crash and the subprime credit meltdown of 2008 combined.
Inside the Fed: Cassandras, Chicken Littles & a Governor Crying Wolf
Unfortunately, Bernanke (& the ghosts of Greenspan & Reaganomics) are Tone Deaf
The 30-year dictatorship now headed by Bernanke must end soon: And when it does, the class wars will not be pretty. But it is no “black swan,” no one can claim they did not see this new crash coming. For several years before the 2008 meltdown we reported on money managers, economists and financial gurus warning of a coming meltdown, they included two other Fed governors who warned Greenspan in the early Bush years. And yet, as late as summer 2008 Bernanke, Paulson and Greenspan were systematically dismissing mounting evidence of a mega-crash dead ahead.
That’s why Time magazine’s cover story about Thomas Hoenig, president of the Federal Reserve Bank of Kansas City grabbed me. David Von Drehle’s “The Man Who Said No to Easy Money” is a warning to all America. Like Ed Gramlich and William Poole, the two Fed Governors who warned Greenspan during the Bush years, Hoenig regularly dissented from the Bernanke’s “easy money” policies that have been favored by Wall Street throughout this 30-year dictatorship. We’re paraphrasing Drehle’s interview with Hoenig as “10 warnings” because it brilliantly reveals the broader historical tragedy of the Fed’s 30-year “monetary dictatorship” driving America to the edge of another 1930s economic revolution, one that will be triggered by a repeat of the 1929 wake-up call.
Now please read Hoening’s ”10 Warnings” about Bernanke in my earlier 2.15.11 version on MarketWatch