Sunday, November 29, 2009
Bernanke: "Global Consensus?"
Recently in the Washington Post, Federal Reserve head Ben Bernanke criticized moves in Congress to limit the power and authority of the Federal Reserve. Lawmakers have been irked over what they see as mistakes by the Fed in dealing with the economic crisis. If you'd like to read Mr. Bernanke's entire column, here it is.
The Federal Reserve has been a controversial institution since its founding, so this most recent flap doesn't surprise me much. For the record, I'm not a fan of the Fed either. I think it's unconstitutional, but that's beside the point of this post.
Below is a clip of Mr. Bernanke's comments. One phrase in particular jumped out at me, but let me quote the whole paragraph:
Notably, some leading proposals in the Senate would strip the Fed of all its bank regulatory powers. And a House committee recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence. These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States. The Fed played a major part in arresting the crisis, and we should be seeking to preserve, not degrade, the institution's ability to foster financial stability and to promote economic recovery without inflation.
Quite honestly, I could care less about "global consensus." I recognize that there needs to be some uniformity of standards here and there, and common sense international protocols dealing with finance and transactions. Having said that, how we govern our banks here in the United States is a matter for the United States and our elected representatives. Not "global consensus." I think this is yet more of the "creeping globalism" of which so many seem to be enamored. The Tower of Babel on a smart card. If Europe wants to be governed by Brussels or some other supranational body, they can go right ahead.
But we'll hold on to our own sovereignty here, thank you very much. Some powers that be here in the States need to be reminded of that. Loudly, if need be.