Ben Bernanke Just Told a Massive Lie About Milton Friedman and I Can Prove it

Ben Bernanke is so desperate to find support regarding his steal from the poor and give to the 0.01% policies he is now telling blatant lies about famous, dead economists that can’t refute what he says.  In this case Milton Friedman.  In his Q&A today, The Bernank claimed:

*BERNANKE: MILTON FRIEDMAN WOULD HAVE SUPPORTED WHAT FED DOING

Well I suppose it’s easy to make things up about people that can’t claim otherwise, but he made a big mistake this time.  Why?  Because Anna Schwartz, who co-wrote the famous work “A Monetary History of the United States” with Milton Friedman in 1963, actually came on the record on several occasions calling out The Bernank and saying there’s no way Friedman would agree.  The sad part about this is it seems Bernanke waited until Schwartz died to really start spewing the lies.  This guy is not only dangerous he is despicable and increasingly desperate…

Don’t take it from me though, back in October 2008 Anna Schwartz had this to say in the Wall Street Journal:

Ms. Schwartz thinks that our central bankers and our Treasury Department are getting it wrong again.

This is not due to a lack of money available to lend, Ms. Schwartz says, but to a lack of faith in the ability of borrowers to repay their debts. “The Fed,” she argues, “has gone about as if the problem is a shortage of liquidity. That is not the basic problem. The basic problem for the markets is that [uncertainty] that the balance sheets of financial firms are credible.”

Rather, “firms that made wrong decisions should fail,” she says bluntly. “You shouldn’t rescue them. And once that’s established as a principle, I think the market recognizes that it makes sense. Everything works much better when wrong decisions are punished and good decisions make you rich.” The trouble is, “that’s not the way the world has been going in recent years.”

In 2002, Mr. Bernanke, then a Federal Reserve Board governor, said in a speech in honor of Mr. Friedman’s 90th birthday, “I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”

“This was [his] claim to be worthy of running the Fed,” she says. He was “familiar with history. He knew what had been done.” But perhaps this is actually Mr. Bernanke’s biggest problem. Today’s crisis isn’t a replay of the problem in the 1930s, but our central bankers have responded by using the tools they should have used then. They are fighting the last war. The result, she argues, has been failure. “I don’t see that they’ve achieved what they should have been trying to achieve. So my verdict on this present Fed leadership is that they have not really done their job.”

Full WSJ article here.

Not enough proof for you?  Well in tribute to Anna Schwartz after she passed in June of this year, Forbes wrote:

Greenspan’s successor, Ben Bernanke, has followed the same path in confronting the current economic crisis, Schwartz charges. Instead of the steady course that the monetarists recommend, the Fed and the Treasury “try to break news on a daily basis and they look for immediate gratification,” she says. “Bernanke is looking for sensations, with new developments every day.”

Yet isn’t Bernanke a disciple of Friedman and Schwartz? He publicly refers to them as mentors, and, thanks to their scientific breakthrough, he has famously declared that “the Great Depression will not happen again.” Bernanke is right about the past, Schwartz says, “but he is fighting the wrong war today; the present crisis has nothing to do with a lack of liquidity.”

Full Forbes article here.

Ben Bernanke, I didn’t think it was possible, but you have hit a new low.  History will not be kind to you.

In Liberty,
Mike

4 Comments

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  1. The problem is capitalism. It’s based on a debt economy, everyone taking out a loan from someone else (who ends up on top) and an unlimited supply of raw materials with obscene amounts of advertising and commercialisation. See Albert Bartlett’s Youtube video on line (the most watched economics lecture ever in history) for why you can’t have unlimited growth on a finite planet. So far, we don’t seem smarter than yeast in a bottle.

    The other thing the 1% fail to realize is that while they may have ‘earned’ their Lamborghinis by working hard, etc., as long as a majority of the planet is lacking in the basics of living, the 1% aren’t safe. It will only be a matter of time before the bodyguards and bought-off police are overwhelmed by angry mobs and The Guillotine Party For Absolute Accountability in Government is instituted…

    The only group that I see that actually understands the full problem(s) and has managed to start talking about full-on solutions rather than piecemeal sighing and finger-wagging is the Zeitgeist Movement, which is being demonized as ‘utopia’ thought. It’s not utopia, there will never be such a thing, but it’s a possibility rather than the one we’re saddled with now. It’s as if every time there was a decision to be made with our way forward as a society, we took a wrong turn. Time to start thinking ahead a few generations before we act, unless we have other planets we can decamp onto.

    • Couldn’t disagree more. How can the problem be capitalism when there is no capitalism? Capitalism would actually allocate resources effectively and if we really had capitalism we might even have nuclear fusion by now. We have crony capitalism and theft through ponzi money now.

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