Are We Headed for Fiscal Oblivion?

The rules governing the Federal Reserve Banks and the Board of Governors are available for public perusal, so this isn’t a scandal or a conspiracy missive. It’s meant to provoke thought, and to highlight the market and liquidity risks that reside in our monetary authority. The Federal Reserve -- know as “the Fed” -- is currently led by Ben Bernanke. Mr. Bernanke got the nickname “Helicopter Ben” by claiming that the Fed could flood the money supply to stave off deflation in a depression, and in 2008, he proceeded to follow his own advice. Since then, we have seen an unprecedented intervention in our financial markets, and there have been claims that we’re headed for fiscal oblivion. This article attempts to evaluate that risk.