Get this sequence of logic:
Bernake: The coordinated response of the central banks saved the world from a financial meltdown
Bernake: Now government has to raise taxes and spend less
Ok, here is reality:
He, and his beleif system and many structural assumptions was a huge part of the latest financial meltdown
He did not see any need to be concerned about a sub prime bubble or exotic instruments as per the Open Market Meeting Notes of the time
Six months into the recession and in mid 2008 the Fed offically said their likely would not be a recession
Six months later they said the worst of the unemployment would be 6.1 % in early 2009 and full and rapid recovery would commence at that point
They just absorbed/created as much American debt in the last two years as was created in all the time from the time we started putting in electric lines in some cities until 1995
They did not save anything…they extended and pretended
Yet its time for us to pay higher taxes now that he saved the world from a problem he sponsored or “sheparded” into being and never saw and even after seeing it badly mis called its depth and nature.
Yet he is not challenged on any of this.
We forget that the Fed’s charter is not to help the nation or the citizens of the nation. It is to preserve the banks. That is its actual charter.
So who is in charge around here? And what are they doing?