Posted on 03/21/2008 6:22:53 AM PDT by nicmarlo
An open letter to Mr Ben Bernanke, chairman, US Federal Reserve:
Sir,
Decades back, one of your predecessors splendidly captured the post-gold standard and the consequent free float of the US dollar scenario rather succinctly when he termed the US dollar as 'our currency, others' responsibility.'
It is this responsibility cast on outsiders like me that compels me to write this open letter to you.
As I write this, I am fully conscious of the fact that we are living in exceptionally troubled times. I am equally conscious of the fact that being the chairman of the US Federal Reserve, you are in effect the central banker to the entire world. Surely, it is an unenviable position.
Your actions, sir, not only impact the United States economy, it does have the potency to impact the global economy. That explains, partly, if not wholly, the 'why' to this letter.
(Excerpt) Read more at rediff.com ...
ping!
I am indeed aware of the sub-prime crisis that has engulfed the entire global financial sector. I am sure you are fully aware as to how your predecessor, Mr Alan Greenspan -- one of the most influential economists of our times -- described the sub-prime crisis in his book -- The Age of Turbulence. According to him the American economy was 'facing not a bubble but a froth -- lots of small, local bubbles that never grew to a scale that could threaten the health of the overall economy.'ping!Yet, as events turns out, I suspect, Alan Greenspan is wrong. But the point is not merely the judgemental capacity of Alan Greenspan. Rather, it reflects poorly on the American regulatory mechanism.
After all, wasn't he the product of a system that was repeatedly touted as fail-proof; at least in surveillance, supervision and regulation? And my worry is that you too are a product of the very same system that has compelled him to be wrong.....
“Open letters”....lol
You haven’t read the article......but are already loling.
good grief.
jeez, not this crap again...the economy has been headed for a recession since 2001 ( if ya listen to the msm )...
Please address the contents of the letter, then state, with specificity, how it is “so wrong.”
Sir, the world does not want to be caught once again by such nasty surprise. Already economists like Martin Wolff (in the US) and Gurumurthy (in India) have predicted large-scale intervention by the 'US public sector' to bail out private finance firms from collapse. The recent bail out of Bear Stearns was an indicator of what lay ahead.But this solution seems to suggest the conversion of the US into a perfect socialist state -- socialism for the rich, mighty, privileged and those who were reckless with others' finances.
In the alternative, the US runs the risk of going the erstwhile USSR way with the only variation that abrupt collapse of the US, unlike USSR, could have profound impact on global economy.
Either way it would seem that you are following the Russian model. What a fall for a country that was held to be a model for free markets and capitalism! Surely Karl Marx would be chuckling at your predicament.
Sir, your silence on all these matters is funereal. And the list of those who doubt the very viability of the US economy is growing by the minute. Let me confess with a heavy heart, sir, today, I have joined that bandwagon.
Isn’t it a crime to read someone else’s mail?
Who audits the Fed?
How can anyone justify moving “toxic” paper from the bank’s books over to the Fed and not making a write-down to market on the new owner’s financial statement?
Thanks for posting the article. The author asks the right questions of Mr. Bernanke.
Yes.
To what “mail” are you referring? Oh...let me guess...you, too, didn’t go to the website and read it?
I agree; they are ones everyone should be at least thinking about........if not asking.
Is there some reason why you did not post the entire letter? A letter to the editor is not the workproduct of the journal that published it, but its author, who apparently wants his point of view broadcast.
With interest rates on fixed investments down and the stock market not doing so well, many retirees have slowed down on their spending. Like it or not, we are a big part of certain segments of the economy. Our seeing our fixed incomes and buying power going down, and as a result can not be good for the economy.
“Is the US economy heading for a collapse?”
No. It’s about the national election in November. Nothing new here.... the liberal media and liberal candidates LOVE to slam the economy when the national election is coming up.
LLS
I would have posted it all except I wasn’t sure if an excerpt was required; it seems that the list of those grows by the day (and I don’t know where that “list” of required excerpts are kept).
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