Central Banker Groundhog Day

Via the New York Times, July 11, 1914 (not even a year after the birth of the Federal Reserve, which Paul Warburg himself - above - engineered with a few close friends like our buddy JP Morgan):

He told the New York Times correspondent that the new currency law had been thoroughly studied and was well understood by leaders of finance here. The bill had been followed with great interest during its various stages, he said, and it was agreed that everything depended upon the men who were to administer the law.

In the hands of inexperienced men, he added, it might lead to dangerous inflation. The men nominated for the Reserve Board were not known here except, of course, Mr. Warburg, who Mr. Untermyer said, was widely known and highly respected both here and throughout the Continent as a profound student of world finance.

The Hill, January 23, 2010:

Senate Majority Whip Dick Durbin (D-Ill.) cast his lot for Bernanke one day after Majority Leader Harry Reid (D-Nev.) said he too would vote for a second term for the Fed chairman.

“I will vote to confirm Ben Bernanke to continue to serve as Chairman of the Federal Reserve," Durbin said in a statement. "I saw Ben Bernanke under fire, facing our nation’s most serious economic crisis since the Great Depression. We need his steady hand as we build our economy and create new jobs across America."

Durbin's announcement came on a day when President Barack Obama made calls to senators to ensure that Bernanke's nomination will clear the upper chamber when it comes up for a vote.

Ever get the feeling like you've been here before?

So if Bernanke is feeling a bit anxious about his chances (as if he isn't going to get confirmed... come on, let's be real, no one's cutting off the crackpipe like that), perhaps he should channel the spirit of Paul Warburg for a little advice on how to appease the unwashed masses long enough to accomplish whatever it is he's trying to pull off.

The definition of insanity, anyone?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

http://preview.tinyurl.com/85v9s I'm not classicaly trained...hell, I'm not even very smart :>) but even back then in 2005, based on my own observations (and what my cat whispers into my ear while I'm sleeping) I was seeking out and reading up on the era that led to the great depression. Note - a dude named MacElvaine (Mississippian - I spent part of my youth in MS and have very fond memories of it) wrote a good book about same as he bothered to examine the 20's and the social mood of the time.