The One Thing Bernanke Is Really Afraid OfSubmitted by Doug Eberhardt on Tue, 12/01/2009 - 16:24
Over the weekend Federal Reserve Chairman, Ben Bernanke, wrote an Op-Ed piece for the Washington Post called; “The right reform for the Fed.”
In this article I break down what Bernanke is saying and relate his cry for the Federal Reserve to remain independent (no audit) to the reality of what the Fed has actually done to cause the crisis to begin with as well as what their existence means to the odds of any economic recovery occurring in the future.
Why Is Bernanke Reaching Out to the Public?
First one must understand why Ben Bernanke is turning to the public via the Washington Post to make his plea.
The reason Bernanke is running scared are the bills before the House and Senate; H.R. 1207 and S 604. These bills, according to Bernanke, would “significantly reduce the capacity of the Federal Reserve to perform its core functions.”
So before analyzing Bernanke’s current statements, one must look at what these “core functions” are that Ben is speaking of. To do so, lets turn to the Fed’s own pamphlet entitled; “The Federal Reserve System; Purpose & Function.”
I have posted below the screen shot from this pamphlet outlining the “duties” of the Federal Reserve:
Read these "duties" and the rest of this article at: