Oh, this is too funny…
Time magazine has just named Federal Reserve Chairman, Ben Bernanke “Person of the Year” for his efforts in “forestalling the coming depression.”
According to the L.A. Times, Time Magazine Managing Editor, Richard Stengel said Bernanke leads the…:
…most-powerful, least-understood government force shaping our lives. (emphasis mine)
Stengel proves in that statement just how little understood the Federal Reserve really is. The “Fed” is not a government agency. For all the power that the Fed has over the U.S. economy, the Federal Reserve is nothing more than a coterie of private banks led by the Federal Reserve Board of Governors. Of this board only the chairman, Bernanke in this case, is selected in a relatively public manner (by appointment and Senate confirmation).
The minutes of these board meetings are not open to public review nor is the board subject to congressional oversight. And yet… this organization wields the power to make or break this nation’s economy.
Hopefully I’ve done my part to help the Federal Reserve be a little more understood.