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Townhall
Finance...
Bernanke’s
Manslaughter of US Economy
By Bill Tatro
8/19/11
My,
oh my.
According
to Karl Rove, Rick Perry,
has committed the unpardonable sin of calling Bernanke’s actions of
printing
money treasonous.
I
thought I was the only one in the
public domain that was calling for jail time for crimes committed
against the
country during the great credit meltdown of 2008.
I’m
not sure treason is the right word
since it connotes “knowingly” taking action against our country. I don’t think Bernanke
could be accused of
that, however, he could be accused of being entrapped in a philosophy
which has
the same result as total destruction.
If
treason were murder, then what Bernanke did was at least manslaughter.
We’re
all familiar with the actions
taken by Bernanke (along with Geithner and Paulson) in 2007 and 2008.
Contrary
to revisionist history,
certain investment banks and beleaguered corporations were on the verge
of
collapse, the inevitable contraction phase of a boom-bust cycle.
Historically,
the cycle starts with
growth, and then boom followed by bust, then contraction, stability,
growth,
and so forth. Unfortunately,
as the
contraction phase was about to begin, Bernanke went into action.
The
selective destruction of Lehman
Brothers and Bear Stearns and the careful rescue of Goldman Sachs, AIG,
Citigroup, Bank of America, GM, and many more, were deliberate choices
made by
this select group of men.
It
should the business cycle that
determines the winners and losers, not those who believe they’ve come
down from
Mt. Olympus. Their
actions, in my
opinion, were not only illegal, but also highly unethical and very
immoral.
Attempting
to circumvent the natural
business cycle had extremely severe repercussions in the United States
and
around the world. Arab
Spring was not
about Democracy, it was about jobs and food.
$4.00
gasoline was not about supply
and demand, it was about excess trading capital flowing into tight
markets. Inflation,
deflation, high unemployment,
foreclosures, and all the rest of our current economic tribulations can
be laid
at the feet of those who tried to rearrange the normal economic and
business
cycles.
It’s
interesting to recall after the
savings and loan crisis of the 1980s and 19990s, hundreds of people
were
indicted and many went to jail. Now,
in
the so-called aftermath of the credit crisis, no significant person has
been
either indicted or jailed. Maybe
that’s
because we haven’t yet reached the aftermath, it’s only just begun.
However,
make no mistake; those who
created this problem will see their day come.
History says it is so, and Bernanke is at the
top of the list.
Read
it at Townhall Finance
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