KILL THE FEDERAL RESERVE SYSTEM: BEN BERNANKE GIVEN SOFTBALLS BY PBS'S JIM LEHRER, PAUL SOLMAN

The following is a link to a sort of town hall meeting (highly staged) for Ben Bernanke moderated by Jim Lehrer.

Embedded video clips can be seen below. Audio and transcript links are also provided

Links: Transcript, MP3 audio link, Video

Below are embedded videos from the program:

Part One: Bernanke on the Record (27 minutes)

Part Two: Bernanke on the Record (18 minutes)

Part Three: Bernanke on the Record (26 minutes)

What you don't hear in that video are questions about why the Fed was created to handle avoiding recessions but we've had so many over the last near 100 years, including the Great Depression.

You won't hear anything about how the Fed creates money. Paul Solman's segment said the Fed buys treasury bonds; however, they buy them with nothing. The taxpayers needlessly owe the private bankers interest on that. You won't hear any discussion about that the Fed is privately owned and controlled. Yes, the President appoints, but the President appoints those the Fed tells the President to appoint.

You do hear at the beginning of the video that the questions were screened. You won't hear any questions about why the whole usury system is good. There is no questioning of the first premises. In fact, as pointed out concerning Paul Solman's segment, that issue is conveniently sidestepped. Solman definitely avoided it. Was the Fed's spokesman visibly relieved? See for yourself. Watch the video and closely listen for and watch that dodge.

Ben Bernanke does say that history shows that branches of government don't do well with monetary policy, but that doesn't answer why they couldn't be reformed to handle the setting of the volume of money in circulation.

Calling into question the undeserved and unearned privilege of the private bankers is deliberately avoided.

Ben Bernanke also said that the Federal Reserve has nothing to do with the National Debt. He mentioned that the fiscal budget deficit this year is about $2 trillion; however, it is my understanding that $400 billion or there about is now (2009) interest on the National Debt and that a large percentage of that is paid to the Federal Reserve members. For Ben Bernanke to say that the Fed has nothing to do with the National Debt is misleading, although he means that technically the Fed doesn't say to the government that the government must spend above its budget. Although that's exactly what the Fed wants. The Fed loves the government to borrow rather than using pay-go (that is pay as you go via taxes rather than borrowing). The Fed does not want the U.S. to live within its means. It doesn't want the U.S. issuing United States Notes pegged to real Main Street productivity and getting rid of Federal Reserve Notes.

The Fed setting interest rates and not regulating members did contribute to the boom and then bust that has caused the deficit to be so high. Alan Greenspan has claimed that he could not have done anything about that, but that's completely untrue.

Ben Bernanke wasn't asked about the deregulation craze (rolling back aspects of the Glass-Steagall Act, etc. "Who's More to Blame: Derivatives or the Glass-Steagall Repeal?" by Dan Caplinger and Christopher Barker. Motley Fool. March 24, 2009.) that led to the overleveraging in the unregulated securities market most particularly in the derivatives such as the Credit Default Swaps (CDS's). Ben Bernanke is buying the toxic securities but not transparently. We don't know how he is decoupling the junk from the portion that is attached to otherwise so-called valuable assets (real estate that would be fine in a stable market rather than overheated).

As for the issue of auditing the Fed, Ben Bernanke said that the people don't want the Congress setting monetary policy. He knows that if the people learn that the Fed's private owners make all that interest on the National Debt that is completely unnecessary and in fact evil, that the people would do away with that.

The truth is that the volume of money put into circulation could easily be pegged to a fix gage of real productivity on Main Street without all the hocus pocus on Wall Street.

You hear Ben Bernanke say that the private sector must issue all credit. Why? Why do the people have to obtain on borrowing and being saddle with paying other's interest or usury? It isn't necessary. I lay out the reasons why elsewhere on this site, but the Christian Commons explains much of it.

Ben Bernanke emphasizes that "too big to fail" must go. What he isn't saying is that the decisions to let Lehman Brothers fail and to bailout the other institutions did not have to be made the way that they were. Nationalization of those entities was always an option. Once nationalized, the assets could have been sold off and shareholders could have taken the losses without the whole system collapsing. Ben Bernanke is misleading and PBS is obviously helping. Of course PBS is far from the only media outlet doing that.

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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