Ref:0908-OM-012Date2009.08.29Current Rating (Max 10)
7 out of 120
An Appointment with Death – Bernanke’s re-appointment as FED Chief
President Obama finally decided on 25
August, 2009 to reappoint Ben Bernanke as FED chief with thestatement “Bernanke has led the Fed through one of the worst financial crises that this nation and thisworld have ever faced.” a.
Really? He has sunk the economy into additional $2 trillion debt (death) trap. The total debt,which now stands at US$ 11.72 trillions as of 27/8 is rising @ $3.7 billions per day or $1.35trillions per day. That too when the interest rates are all time low. If the rates rise by 3% from alltime low, the debt will explode further by additional $ 400 billions. Think of it – what happens if the market rates rise to double digits. The interest servicing cost alone will destroy America.b.
Lawrence Summers was having weekly meeting for several months with the Bernanke in possiblepreparation for take over. However, it looks like he realized the heat of the raging fire in theeconomy that finally forced him to withdraw from the race leaving sole survivor or killerBernanke, who is now having open field to play by his and Goldman Sachs Rules.c.
Bernanke and Paulson in the name of rescuing economy played upon the weakened minds of senators and forced them to sign the rescue package running into $1.5 trillions. They also causedthe new Administration to guarantee the worthless debt of $ 306 billions of Citibank which willbecome a national liability.d.
It is obvious that Bernanke can freely play the game orchestrated by Paulson and Goldman Sachs,which is the only firm making money in billions – reasons – they get advance information what isgoing to be like from the White House.
What did he do?
He reappointed Bernanke for second term – for 4 years – when the economy worsened under his leadership.His fears were illusory that if he changed Bernanke at this juncture, it would have rattled the market. He wasobviously influenced by the powerful lobby of Paulson and his old firm Goldman Sachs
What effect will it have and why?
Disastrous. You do not give second chance to a doctor of death.
What he should not have done and why?
He should have fired him, not let him go scot free, to set an example that efficiency pays and inefficiencyor corruption gets penalized. FED and TREASURY will no longer be secret, so essential for nationalmonetary management.2.
Price sensitive information will continue to flow out at regular interval to the interested quarters as above.3.
US economy will be controlled by remote hands with spy unit lying in the Fed.4.
By reappointing him, Obama has brought ruin nearer and faster. One fine morning he will realize the truth.
What he should have done and why?
He should have given chance to some other economists. Bernanke has been direct or indirect architectsince the days of Alan Greenspan.2.
There are hundreds of economists, some even Nobel Laureates in economics, which could have replacedBernanke and given access to fresh thoughts for betterment.3.
He should have short listed a few names of leading economists for vetting purpose. Let the best win therace. It may be noted that what is required is “practical economist” not the researchers or theorists.4.
When Hong Kong Land of Jardine group in Hong Kong, known as Tai Pan, went through the worst crisis inits history, the Board imported a Corporate doctor from Australia who did fantastic job in shortest time.The company not only survived but prospered later. Companies and Countries are managed same way.5.
Reappointing Bernanke is like chewing same gum again and again. And, it is nature of gum to stick veryhard. They turn tasteless too on frequent use. They will become difficult to dislodge later. Ask Singaporegovernment to know about the Chewing Gum. It applies to human like Greenspan in the past and