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Starring BEN BERNANKE
and introducing JANET YELLEN (current Fed vice chairman)
with Guest Appearance as Chief Zombie ALAN GREENSPAN," the Maestro of Misery, responsible for today's mess before Bernanke took over in February 2006, exacerbating it with policies disgusting enough to make legitimate analysts blush, cry foul, or rage against ruinous practices on his watch.
Credit Grantham for the latter, at his best in his Q3 report. Noting "The Ruinous Cost of Fed Manipulation of Asset Prices," he says the following:
"If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy (failing dismally at it)....limit(ing) its meddling to attempting to manage inflation."
Put another way, he recommends maintaining price stability alone, what few, if any, Fed chairmen accomplished since 1913 - why nearly a century later, pre-Fed dollar value declined to less than 5 cents. Moreover, it's heading lower, given Bernanke bent on weakening it, perhaps destroying it to be replaced by a Wall Street controlled global currency. They may crave it, but not US households seeing their savings destroyed.
Grantham:
"I would limit (Fed) activities to making sure that the economy had a suitable amount of liquidity to function normally - a Goldilocks formula, not too hot, not too cold, just right. "I would force it to swear off manipulating asset prices through artificially low rates and asymmetric promises of help in tough times - the Greenspan/Bernanke put."
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