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Ben Bernanke, You're Fired!

Ben Bernanke should be fired.

Yup. That's right. The Chairman of the Federal Reserve should lose his job.

The Federal Reserve has done nothing useful to help maximize employment (one of two mandates), but has certainly increased inflation (controlling it is the other mandate).

Since the Great Recession began in 2007, unemployment has risen, currently sitting at 9.1%. When President Obama took office in January 2009, the economy was on the brink of a depression, with it feeling like the economy was falling off a cliff. In that time, the Federal Reserve had launched three quantitative easing programs (if you count Operation Twist as easing), expanded its balance sheet nearly three fold, weakened the value of the U.S. dollar, and made it harder for the middle class to advance, and virtually impossible for the lower class to get out of its rut.

Governor Rick Perry (R-TX) said that he believes that Ben Bernanke is guilty of treason. You know what? He's right. 1000% right. Bernanke is trying to make it harder for America as a whole to be great. Sure he's helped his largest constituency (Wall Street) get out from its hole they put the country in, and made them whole, and then some.

What about the rest of us? That is where Occupy Wall Street comes in. This is a group of people who are fed up with high unemployment, the lack of available jobs in this country, and the general sense of social unrest.

They call themselves the 99%, as opposed to those in Washington and Wall Street who are the "1%." The 1% refers to those who are the top earners in this country, and represent 90% of the country's wealth. Occupy Wall Street should not be mad at the top 1%, as they are merely playing by the rules. If the game is rigged in your favor, you have done nothing wrong - it is the game that needs correcting. In this case, the game is the Federal Reserve, and Mr. Bernanke.

Bernanke has spent no time in the real world, and only uses economic theory and academic research as the best guess for his policies. In fact, many of the doves on the Federal Open Market Committee have not. One who has, is Dallas Fed President Richard Fisher. Fisher has run a bank before, and understands how the banking system works. To invert the yield curve to try to get spur the economy is counter-productive. Banks will not lend because of lowered spreads on lending, and money remains tight.

Of course, because Wall Street was expecting Operation Twist, Bernanke had to give it to them. For he is their overlord: providing cheap and easy money. Except they do not lend it out to help the middle and lower classes get out of their rut. It sits in the bank, doing and earning nothing. At least these banks, like Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS) and others are not allowed to gamble with our hard earned dollars anymore, thanks to the Volcker Rule. That cut down on prop trading, but banks are figuring out a way around that rule. Again, it is not their fault. They are playing by the rules.

Bernanke, the FDIC, and the Federal Reserve are the ones setting the rules. When the game is rigged, look at the one who makes the game, and replace them.

In the words of the Donald, "Ben Bernanke, you're fired!!"

Posted-In: Donald Trump FDIC Federal Reserve Federal Reserve Chairman Ben Bernanke Goldman Sachs Morgan Stanley Rick PerryNews Movers & Shakers Politics Econ #s Economics General Best of Benzinga

 

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