Friday, April 3, 2009

The Financial Dictator

Economist Simon Johnson writes today in the WaPo about Fed Chair Ben Bernanke and the radical wager he is making. Essentially, he is unilaterally, and on his own unaccountable authority, printing trillions of dollars and 'loaning' them out, in order to prevent deflation and stimulate the economy. The big risk here is of stimulating big-time inflation and basically killing the value of the dollar.

Most people don't know this, of course. It is unprecedented for the Fed Chair to do this. It is simply amazing how much power we've put into the hands of an appointed, semi-private central banker.

No comments:

Post a Comment