Fed Chairman Ben Bernanke, Our Great Hope for the Future
/EIN Presswire/ We got at least one thing done. By “we” I mean our erstwhile representatives in Congress whom “we” elected. What did we get done? We reappointed Fed Chairman Ben Bernanke.
Now, why is that even an issue? The man is competent, intelligent and effective. Unfortunately, our “morons” (instead of solons) on the Hill wanted somebody who bows to the politicians’ will not someone who has the highest education, the best academic credentials and the greatest competence.
With Bernanke established for another four years at the helm of one of the most important institutions in this country and during a difficult transition of the financial system from one of speculative growth to actual growth, we can rest easy that a trustworthy man will be guiding us.
In addition, there is a growing chorus of international self-serving leaders who want to end the dollar’s dominant position as the key medium of exchange. Bernanke will deflect the worst attacks on the dollar and will be there to ensure our currency’s continued viability as a store of value.
There was an article in The New York Times today that said French President Nicholas Sarkosi was calling for a new Bretton Woods agreement, one that did not have the dollar as its central role. China wants the same thing and so does Russia.
But why? Let’s look at that bunch of losers and malcontents.
France wants to be a world power again. Sarkosi has visions of bringing back the Napoleonic Empire. (We all know what happened to Napoleon and that Empire.). And the only thing Sarkosi has in common with Napoleon is his slight build and his arrogance.
China wants to have imperial status. Unfortunately, all it has is a society that exploits everyone and everything. It may have become the world’s leading manufacturer. Only it makes mainly junk that either breaks after initial use, is made by dishonest people and creates unbearable polution. China has a currency that cannot be used by anyone other than the Chinese for internal purchases. It cannot be used as an international medium of exchange and it cannot be used for investment purposes. It is useless.
Then there is Russia. It wants to go back to be the imperial realm of the Czars. Unfortunately, Russia’s economy remains subject to a dictatorial government without the expertise to handle even a second-rate economy. Corruption is rife, blackmail is widespread and murder is a common form of enforcement. The ruble cannot be used as an international medium of exchange or as a store of value.
So what do those countries want to achieve? All they really want is bragging rights. They cannot handle the leadership of the international financial structure. They will only destroy it.
But the international financial structure cannot be left as is and to the United States alone. It needs adjustment and modification. Hopefully Fed Chairman Ben Bernanke will be the man who will lead the charge. If he does he will do so without fanfare and flag waving, but quietly and effectively.
It is my opinion that we have the opportunity to bring about a new financial order under the existing “pax Americana”, one that is less volatile and a great engine for global economic growth.
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