“Federal Reserve Chairman Ben Bernanke and his allies at the central bank haven’t merely
embarked on a misguided policy — they’re a threat to U.S.-style capitalism, says former White House Budget Director David Stockman.
The Fed now determines the level of short-, medium- and long-term interest rates, he told
Newsmax TV in an exclusive interview. “It’s all rigged. This is administered price-setting by 12 people who are not even elected.”
Financial markets now determine prices and “drive the entire capitalist system,” says Stockman, author of the new book, “The Great Deformation: The Corruption of Capitalism in America.”
And it’s the Fed that sets prices in financial markets. “All of the trading today is not based on price discovery as we talk about in free markets or discounting cash flows and earnings in the future,” Stockman says, who headed the Office of Management and Budget from 1981 to 1985 under President Ronald Reagan.
“They’re all trading against what they think the overlords at the Fed are doing.”
Bernanke is “a Keynesian money printer who believes that debt, debt and more debt is the elixir that helps economies grow and people become wealthier,” Stockman says.
“That is utterly wrong doctrine, and it’s nevertheless in the mind of the guy who’s running a system. And he has four or five colleagues who believe the same, and they are dangerous, and they are wrecking our free enterprise system.”
The notion that we don’t have inflation now is off base, Stockman says. “The issue isn’t inflation of goods and services,” he says. “There is another inflation called asset inflation.” And that’s running rampant, Stockman says….”
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