Zerohedge today reposted an analysis of fed chairman Ben Bernanke’s 60 Minutes interview by Michael Pento of Euro Pacific Capital. Pento makes his case that Bernanke told 2 lies: Lie #1-The Fed isn’t printing money, and Lie #2-Bernanke is “100 % confident” that, when necessary, the Fed can control inflation and reverse its accommodative monetary policy. It’s a piece worth reading, but also consider the comment below we got a few days ago from a banking veteran with just as much experience as Pento.
“The Fed gets criticized by folks of all political beliefs. To me criticizing the Fed is like criticizing the fire department. Building owners complain that they do water damage and the arson squad complains that they destroy evidence. Like the fire department, as the Fed puts out economic fires it creates collateral damage. That collateral damage takes the form of asset bubbles created by low interest rates and large increases in money supply. The Fed quite possibly averted a major worldwide depression and it so doing made enough money that is gave Treasury $45 billion in 2009. So before anyone bitches about the Fed they should perhaps think about that.”