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‘Fed Dictator Bernanke Needs To Be Toppled’ To Implement Glass-Steagall

Feb. 15, 2011 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee.

Paul Farrell, an investment guru once with Morgan Stanley and now a regular market commentator, wrote today in 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.... 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."

Although not mentioning the FCIC Report, Farrell reports at length on Kansas City Fed President Thomas Hoenig's interview in Time Magazine this week. Farrell says that Hoenig "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." He notes that Hoenig consistently voted against the easy money policies at the Fed as inflationary, and defended manufacturing and farming against the bank bailout insanity.

Farrell concludes:

"America must end easy money, and add a new Glass-Steagall. What would Hoenig do as Fed chairman? High savings rates, low leverage and a strong currency. Finally, Hoenig would bring back the Depression-era Glass-Steagall rule that barred commercial banks from taking excessive risks. He would reduce government debt and promote a manufacturing revival, but it won't be easy, there is no painless approach. Unfortunately, none of this will happen until America gets hit over the head by a brutal wake-up call, like 1929 and the Great Depression. Until then, the 30-year monetary dictatorship now headed by Bernanke will keep pushing its self-destructive easy-money policies, ignoring the warnings of Thomas Hoenig and all of the other Cassandras, Chicken Littles and Americans Crying Wolf, over and over again."