By-Webster G. Tarpley
My dear Senator,
I am writing to urge you to vote against the confirmation of Ben Bernanke for a second term as Chairman of the Board of Governors of the Federal Reserve System. Bernanke has failed in his responsibilities both as a banking regulator and in his administration of Federal Reserve lending. Bernanke presided over the final phase of the $1.5 quadrillion financial derivatives bubble which is the central cause of the present world economic depression. He was the principal advocate for the reckless and irresponsible policy of bailing out bankrupt money center institutions, allowing them to live on as zombie banks at astronomical taxpayer, but with no corresponding benefit whatsoever for the economic life of the broader society. Bernanke is responsible for the super-toxic alphabet soup of Federal Reserve lending facilities like the TAF, the TALF, and so forth. These betrayals of the public trust have offered 0% credit to predatory institutions including Wall Street banks, insurance companies, credit card companies, money market funds, and other financial institutions. Bernanke has thus used public resources to subsidize financial speculation in all of its most destructive forums, while doing almost nothing to provide cheap credit for production that would benefit factories, farms, mines, building construction, small business, exports, scientific research, energy production, and infrastructure building. Economic activity in all of these fields is now dying for lack of credit, which is being denied by the very institutions Bernanke is trying to save. Everything that Bernanke has done is diametrically opposed to the rational credit policy needed to fight an economic depression.
Bernanke must therefore be rejected. Instead, the Senate should support a new Fed chairman with the qualifications necessary to preside over the nationalization of this illegal, unconstitutional, and failed institution. The Federal Reserve Act of 1913 must be repealed. The future of the Fed is as a bureau of the United States Treasury responsible for providing cheap federal lending as a public utility for productive activity in the form of tangible physical commodity output, not speculation and financial services. In the future, the size of the money supply, short-term interest rates, and the approved categories of lending must be taken out of the hands of unelected and unaccountable cliques of predatory bankers, and deliberated in the full glare of publicity by the House, the Senate, and the president, as the United States Constitution actually requires. Because of Bernanke’s pattern of subservience to Wall Street interests, it is clear that he cannot be the official suited to to carry out this historic transition. Worse, reports concerning telephone calls made by Treasury Secretary Geithner in September 2008 suggest that Bernanke may also be a party to illegal operations by the Fed in regard to the bailout of AIG and its derivatives counterparties at that time. It is unthinkable that the Senate would approve Bernanke unless and until these grave suspicions have been cleared up.
Today’s newspapers suggest that Bernanke, even if he should be rejected by the Senate this week, would still attempt to stay in power as a member of the Board of Governors through 2020, exerting his power through his colleagues presently on the board. This would amount to nothing less than a bankers’ insurrection. In this eventuality, the Congress must swiftly impeach Bernanke and remove him from office immediately.