"The paper dollar is now the single most important source of systemic risk to the financial system, the world economy, and the security of the American people.
That is the lesson of the past 100 years that Federal Reserve Chairman Ben Bernanke did not teach during his four lectures at George Washington University's Graduate School of Business. Instead, he celebrated the importance of the extraordinary powers he and his fellow governors have to manipulate interest rates and the value of the dollar in the name of economic growth and stability.
In so doing, he ignored completely that the ever-growing need for heroic interventions by the Fed is itself being created by the paper dollar system he celebrates."
"Under the post-World War II gold standard, there were no financial crises that presented a systemic risk to the US economy. Since 1971, we have experienced the:"
- 1973 Oil shock and international monetary crisis
- 1979 Oil shock and dollar crisis
- 1982 Latin American debt crisis
- 1984 Banking crisis and effective nationalization of Continental Illinois Bank
- 1987 Stock market crash
- 1989-91 S&L crisis and bailout
- 1990 Japanese bubble collapse and banking crisis
- 1994 Mexican peso crisis
- 1998 Asian currency crisis
- 2001 Dot com crash
- 2007-09 Housing collapse and international financial crisis
- 2010-2012 European sovereign debt crisis
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