News & Analysis
Romney: Reappoint Bernanke After All ...
Consider keeping Bernanke, top Romney adviser says ... Ben Bernanke received an unlikely defense of his work at the U.S. Federal Reserve by a top Mitt Romney adviser, who said on Tuesday that he should be considered for a third term as chairman. Glenn Hubbard, economic adviser to the Republican presidential candidate, said he would advise a possible President Romney that Bernanke should "get every consideration" to stay on beyond January 2014, when the chairman's current term expires. The comments may come as a surprise given Romney has said he would not reappoint Bernanke beyond 2014. Further, many top Republicans have blasted the Fed's aggressive policies since the Great Recession as overreaching and reckless. – Reuters
Dominant Social Theme: The Fed has abused the trust of US citizens and is not a dependable institution ... Wait! Fed chairman Ben Bernanke has been doing a great job and ought to be re-elected.
Free-Market Analysis: The best metaphor we can come up with for Mitt Romney is that he reminds us of Linda Blair in the "Exorcist" movie. Remember that scene when her head rotates all the way round like it's not attached to anything?
Well, that's Romney. With almost any issue he seems able to rotate his head around until he's seen it from all 360 degrees – and made solemn pronouncements about it, often diametrically opposed. In this, ironically enough, he is kind of the anti-Ron Paul.
Ron Paul, of course, is the libertarian-conservative presidential candidate and Republican Congressman from Texas who is famous for never compromising.
As a firm believer in the free market and competitive money, Ron Paul has been a critic of central banking for most if not all of his adult life. For decades as an increasingly successful politician, he was one of a very few who consistently espoused abolishing the US Federal Reserve.
In the past five years, however, Ron Paul's stubborn, free-market sentiments have finally penetrated the national consciousness and resulted in a bill passed by the US House of Representatives to "audit" the Fed – to find out exactly what it's been doing with its awesome money power.
Out of the pressure that Ron Paul placed on the Fed in the past years have come two stunning revelations. The first was that the Fed lent some US$16 TRILLION to financial facilities around the world when the global financial crisis was at its height. The second was that top Fed officials directed at last US$4 trillion to financial firms with which they were personally affiliated.
There are numerous justifications for central banking but in reality it is nothing but crony capitalism disguised as a public good.
It has become fashionable of late to say that the Fed is a private institution but it is, of course, a public franchise in terms of largest parameters. It has been cleverly structured to give the appearance (and some of the reality) of extensive public consultation.
In fact, the Fed's founders spent an inordinate amount of time crafting a bill to legalize its clearinghouse activities within the walls of Congress.
The Fed was authorized in 1913 and by 1920 it was a de facto criminal body, surreptitiously issuing far more dollars than it was allowed to by law, based on the gold it held. The result was the Roaring '20s and then the Depression of the 1930s. In between were bank holidays proclaimed by President Franklin Roosevelt.
Roosevelt was apparently told to declare bank holidays so people wouldn't cash in dollars and find out there was no gold. If they had done so the Fed bankers of the day would have been found out.
Instead, the system continued and expanded around the world. Today there are 150 central banks, most reporting to the BIS. In aggregate, the banks seem to belong to a dynastic power elite that uses the Money Power it derives from them to create ever-closer world government.
This elite has run into tremendous pushback from the Internet and what we call the Internet Reformation, which has exposed the globalist conspiracy. As a result, its activities have been heightened and speeded-up.
More false flags have apparently been produced as well, to confuse people about the one system that can fully confront the conspiracy ... free-market thinking.
Most recently, it seems, the ideas of monetarist Silvio Gesell have been reintroduced along with others that maintain the actions of central banking can be used on behalf of "the people" – if only the "banksters" are removed.
The system should be run by the US government, in other words. Of course, this is already the case in China and India and there is no perceptible improvement that we can see. What the elites seek is mercantilism. So long as government exists – the bigger the better – the power elite will find ways to remain in control.
This is no doubt why the dreadful, fascist Fabian Society apparently sponsored Silvio Gesel and perhaps Major Douglas, another pure fiat monetarist.
Today, these theories are being proposed and implemented by a variety of groups, many of them unsurprisingly affiliated with the UN.
We've written about this authoritarian infiltration here:
Even the patron saint of the alternative money movement, Magrit Kennedy, is very focused on UN-style Green activism and used to work for UNESCO. You can read about that here:
Part of this apparent psy-op is to create public pressure for neo-Pecora hearings that shall finish off Wall Street and transfer all market power for capital raising to Fedgov, where it shall no doubt be controlled behind the scenes by Money Power itself.
The sad thing is that there is no way of implementing a "perfect" money system, let alone a "perfected" one. Ron Paul probably got closer to the mark when he suggested competing currencies. Within that paradigm gold and silver would no doubt find their rightful place as they have throughout history.
Whether private or public, monopoly central banking is an extremely destructive force. The rationale advanced is that it "saves the system." But the highly centralized, urban and wasteful and eventually ruinous system it creates is not worth salvaging in the first place.
This is why an honest man like Ron Paul advocates getting rid of central banking. This is why a man like Mitt Romney, who is nothing but another representative of the power elite, will make negative statements about fiat central banking but will never actually do anything to remove the system.
This is no doubt why his aides are already preparing the way for the return of elite technocrat Ben Bernanke. Here's some more from the article:
"Ben ... gets paid nothing for getting kicked around all the time. I think they ought to pat him on the back," Hubbard said in an interview, adding he has known Bernanke since they were "practically kids" and regularly speaks to him.
"I may or may not agree with him, but that's very different from saying I question his motives. I wish politicians would stop doing that," Hubbard told Reuters TV.
The comments from Hubbard – who himself was considered for the Fed chairmanship under former President George W. Bush, who ultimately picked Bernanke – suggests there is at least some support for the head of the U.S. central bank within the Romney camp as it battles to unseat President Barack Obama.
Hubbard was quick to note his opposition to some Fed policies, including the large-scale bond buying programs known as quantitative easing, or QE. He said a third round of buying (QE3) is unlikely to happen and would have little effect on either the economy or the bruising election campaign ...
Hubbard, who was chairman of the White House Council of Economic Advisers under Bush, said Congress is right to consider forcing the Fed to explain policy decisions. But "the idea of putting them more under the microscope of literally auditing decisions – I don't think so," he said.
Already, it seems Romney is backing away from anything of substance that will reveal the true nature of the corruption and destructiveness surrounding the Fed. As Ron Paul has pointed out (and we point out whenever we can), monopoly central banking schemes fix the price and volume of money, though there is no way to know for sure how much money to print.
Controlling money or suggesting its control is merely an authoritarian sickness aimed at depriving some people of wealth while overcompensating others who hold the reins of control.
Whether it is Magrit Kennedy, who worked for UNESCO, or Mitt Romney, who is evidently and obviously a surrogate for Money Power, you will find one self-evident truth: They don't believe in letting people make their own decisions about money and commerce.
They have a "better idea." They want to inflict it with a minimal amount of pushback. Like John D. Rockefeller, they believe "competition is a sin."
Conclusion: We're not surprised Romney is backsliding about the Fed. It suits his nature and the position he wishes to assume.