Ben Bernanke a Bit Confused on Economics

Forbes.com: "The great economist Henry Hazlitt once observed that ‘Economics is haunted by more fallacies than any other study known to man.’ Were Hazlitt alive today, he surely would have a field day addressing the numerous economic fallacies offered up by our very own Federal Reserve Chairman, Ben Bernanke.

From his frequent assertions that economic growth is the cause of inflation, to his support of spending ’stimulus’ as though wealth redistribution actually drives economic activity, to his belief that simple money creation enhances the economy, it’s fair to say that the world’s most powerful central banker buys into a quite a few of these fallacies. Historians will write volumes on former President George W. Bush’s biggest mistakes in office, and while the left and right will have plenty to work with, it’s likely that for some at least, Bush’s appointment of Bernanke will loom large."

My comment: Remember when everyone was so enamored with Greenspan. He could do wrong and they were calling him the "maestro" as if he was some walking supercomputer that knew how to pull the levers and push the buttons of the economy in such a way that we had a "Goldilocks" economy, not too hot and not too cold. It turned out he was an idiot and he created two asset bubbles (the tech wreak and the housing bubble), his nephew Bernanke is even more off base. Well I take that back. If he is basing his policies and decisions on what benefits the banking cartel in this country then his proclamations make perfect sense. The idea that one guy or a small group of people can control interest rates so precisely that they can fine tune a $14 trillion dollar economy comprised of 300 million people making billions of economic decisions is beyond preposterous. Yet it is shouted from all the media and academia that these "elites" know what they are doing . You follow them at your own peril.

John Polomny
The Real Deal