The Showdown Between the Fed-Heads and RBISubmitted by northstar on Tue, 12/01/2009 - 16:52
This article starts farther down in the main blog.
Also, this is amazing news that a central bank from an emerging market (and not one of the G-7 nations) is now addressing the touchy issue of reserve diversification in such an open and transparent manner – especially while all the U.S. officials continue to hide behind smoke and mirrors.
On one side you have the Reserve Bank of India making its intent clear by publically announcing the purchase of the 1st and now possibly 2nd 200 Tons in SDR’s. (And coincidentally also publically denouncing the U.S. dollar in the process.)
On the other side of the fence, we have the Federal Reserve, who continues to print money like there’s no tomorrow and devalue our dollars. More importantly, they don’t want us to know exactly how they’re doing it.
I shudder to think what the Fed has been orchestrating that they do not want us to know. I feel this is about as close to a confession we will get from the Fed confessing to wrong doing.
Coming back to the contrast between the Fed and India’s Central Bank…
In short, we have the Reserve Bank of India making global public announcements of their intentions. They are making speeches of how they operate, of how they measure and use benchmarks. They do this so the public can have all the confidence it will need in its leaders to protect its wealth.
And we have the Fed pleading their case to make the public not look at its internal workings.
Frankly, Dr. Bernanke is scaring the beejebers out of me with his cryptic editorial pieces. That’s not how I visualize a central banker instilling confidence in the masses.