Last week Joseph Stiglitz, professor of economics at Columbia University and recipient of the Nobel Memorial award in Economics (2001), made a set of explosive criticisms about the Federal Reserve at a public forum on financial reform that has largely been ignored by the mainstream media to date. Tim Iacono at SeekingAlpha says, with respect to the comments, that they are, "patently obvious to anyone with a working knowledge of how the Federal Reserve system really works, yet, even to me they somehow seemed shocking."
What was it that Stiglitz said?
If we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure.
The pseudo-public (and therefore pseudo-private) Federal Reserve has long pretended to the serve the public interest, while hansomely filling the vaults of the banks to whom they are supposed to supervise and regulate. Since the the inception of the Great-Recession libertarians, progressive-liberals, and an assortment of economists have been asking tough questions about the conduct and competency of Alan Greenspan and Ben Bernanke and the entire Federal Reserve system, which to date has blocked, scuttled, or diluted any attempts to allow transparent examination of its activities. I too have been questioning the basis for the US Federal Reserve system (here, here, and here) for some time, and Stiglitz's comments, which I do not consider hyperbole, are a refreshing anodyne to the usual mealy-mouthed platitudes offered by the MSM on why meaningful examination of the Fed and financial system reform cannot occur.
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