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Paul B. Farrell
Feb. 15, 2011, 12:01 a.m. EST
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By Paul B. Farrell, MarketWatch
ARROYO GRANDE, Calif. (MarketWatch) "” Fed boss Ben Bernanke is the most dangerous human on earth, far more dangerous than Hosni Mubarak, Egypt's 30-year dictator, ever was. Bernanke rules a monetary dictatorship that will trigger the coming third meltdown of the 21st century.
But this reign of economic terror will end.
Hundreds of police marched in Cairo's Tahrir Square Monday to show solidarity with protesters who helped to topple Hosni Mubarak.
Just as Mubarak was blind to the economic needs of the masses and democratic reforms, Bernanke is blind to the easy-money legacy that's set the stage for revolution, turning the rich into super rich while the middle class stagnates and peanuts trickle down to the poor.
Warning, Egypt also had a huge wealth gap before its revolution. Bernanke is the final egomaniac in America's bubbling 30-year wealth gap, where the top 1% went from owning 9% of America's wealth to owning 23% during this dictatorship.
Bernanke's ruling ideology is the culmination of a 30-year economic war that has forged together Reaganomics for the super rich, former Fed chairman Alan Greenspan's toxic allegiance to Wall Street, the extreme Ayn Rand's capitalist dogma, culminating in the toxic bailouts of Treasury Secretaries Hank Paulson and Tim Geithner, two Wall Street Trojan Horses corrupting government from within.
Since 1981 this monetary dictatorship has caused enormous collateral damage, systematically sabotaging democracy, capitalism and the American dream while fueling the rise of our most dangerous new enemy, China. See "Secret China war plan: trillions in U.S. debt."
When Obama reappointed Bernanke a couple years ago, "Black Swan's" Nicholas Taleb was "stunned." Bernanke "doesn't even know that he doesn't understand how things work," that Bernanke's economic methods are so inadequate they make "homeopath and alternative healers look empirical and scientific."
We called Bernanke, the "Captain of the Titanic," warning that he was setting up the third meltdown of the 21st century, predicted by "Irrational Exuberance's" Robert Shiller, a coming crash worse than the 2000 dot-com crash and the subprime credit meltdown of 2008 combined. See "Capt. Bernanke sinks the U.S.S. Titanic."
Unfortunately, as with Egypt's dictator, the 30-year dictatorship now headed by Bernanke must end soon: And this class war will not be pretty. But it is no black swan; no one can claim they didn't see a new crash coming.
For several years before the 2008 meltdown we reported on money managers, economists and financial gurus warning of a coming meltdown. They included two Fed governors who warned Greenspan in the early Bush years. And yet, as late as summer 2008 Bernanke, Paulson and Greenspan were systematically dismissing mounting evidence of a mega crash dead ahead.
That's why Time magazine's cover story about Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, grabbed me. David Von Drehle's "The Man Who Said No to Easy Money" is a warning to all America.
Like Ed Gramlich and William Poole, the two Fed Governors who warned Greenspan during the Bush years, Hoenig regularly dissented from Bernanke's easy-money policies that have been favored by Wall Street throughout this 30-year dictatorship.
We're paraphrasing Drehle's interview with Hoenig as 10 warnings because it brilliantly reveals the broader historical tragedy of the Fed's 30-year monetary dictatorship driving America to the edge of another 1930s economic revolution, one that will be triggered by a repeat of the 1929 wake-up call.
Hoenig consistently "cast his lonely ballot against the indefinite reign of easy money. Eight meetings, eight no votes "¦ an unyielding point of view, one that has become ever more relevant now that rising commodity prices have put inflation worries back on the economic radar screen."
In short, global commodity inflation may soon do what Hoenig could not, put an end to America's self-destructive easy money reign of economic terror, and more importantly finally end the Fed's 30-year "monetary dictatorship."
Paul Farrell writes the column on behavioral economics. He's the author of nine books on personal finance, economics and psychology, including "The Millionaire Code," "The Winning Portfolio," "The Lazy Person's Guide to Investing." Farrell was an investment banker with Morgan Stanley; executive vice president of the Financial News Network; executive vice president of Mercury Entertainment Corp; and associate editor of the Los Angeles Herald Examiner. He has a Juris Doctor and a Doctorate in Psychology.
Consolidation in the energy services sector continues with the acquisition of a John Woods unit that brings new life to old energy resources.
5:14 p.m. Feb. 14, 2011
"Fed dictator Bernanke needs to be toppled http://on.mktw.net/gXKXXe" 12:35 a.m. EST, Feb. 15, 2011 from MKTWFarrell
"Secret China war plan: trillions in U.S. debt http://on.mktw.net/guMVN3" 12:42 a.m. EST, Feb. 8, 2011 from MKTWFarrell
"Wikileaks vs. Wall Street in a war for our souls http://on.mktw.net/eajuvw" 12:59 a.m. EST, Feb. 1, 2011 from MKTWFarrell
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