[Attention Surplus Disorder]

The debate as to the efficacy of G-span and his various moves is long and drawn out.

However, one has to remember exactly what he is charged with. Today I heard some pundit declare on TV that he is charged with "controlling inflation and keeping unemployment 'low'". As I understand it, nothing could be further from the truth. Also, regardless of whenever one might think the recession started, his handling of it has been nothing but inept IMO. Because IMO not only did he create the conditions which spawned it, he largely triggered it. And his steadfast refusal to let things run their course has delayed the repair of the conditions that grew the recession. Ten years from now I predict he will NOT be the object of hero worship as he now is. Except of course, by the member banks.

He is the head of the central bank, a private, non-government coporation owned by and operated for the benefit of its' member banks. Period. Far from controlling inflation, he is doing his best to induce it at this point. Why? Because his interests lie in maintaining the rising price of assets so that the loans securing them remain serviced. He is interested in a rising stock market so that pension funds are refloated without excess cash contributions from the corporate sponsors of same. Employment, he could care less about. He is interested in the health of the member banks that comprise the Fed. That means: loans get repaid. He has compensated for the loss of jobs over the past few years by lowering interest rates to inarguably synthetic levels, which has seriously eroded the value of the dollar. But everybody's happy because they can borrow money for trash at low rates. Meanwhile, the mantra has been "there's no inflation". Right. Who actually believes there is no inflation? The people overjoyed at the runup in their home prices or the ones who are having a rough time affording insurance of ALL types? And he has taken up the cause of "productivity" which for most people means that fewer people perform the same amount of work; hence corporate wages paid decline. Again, there's no such singular thing as "the economy"..in the sense that if you and I go to a Yankees/Red Sox game and your team is the Yankees and they lose, it's a lousy game for you and a great game for me.

Gspan gets a lot of credit for his handling of some of the crises of the past decade and a half, but in my view he not only sewed the seeds of same, he created the crises on top of the unstable conditions he himself fostered. It's a lot like glorifying an arsonist for putting out the fires he himself has set.

[dave66]

I agree with much of what you wrote here.

As I learned long ago, there ain't no "federal" in the Federal Reserve System. However, I believe that most citizens, when hearing or reading the financial news, have the mistaken idea that since Bush (or any president) ceremoniously appoints the "fed" chairman, the Federal Reserve must somehow be a federal agency (of some sort).

It was the Congress, though, that permitted the Federal Reserve to change our money system to "federal reserve notes" and take our currency off silver and gold.

As the story goes, in 1920, a $20 gold coin could buy a man a nice custom-made, three piece suit. Today, that same $20 gold coin could do the same. Try buying that with a $20 "federal reserve note" today and see what you end up with!

If you want to see more on how the federal government has financially deceived the citizens of this country, check out the following --

www.861evidence.com

www.861.info (broadband required)