Ben Bernanke is an American hero. He has never been given any credit in his role. He has exposed nearly every century-old financial theory as wrong. He has shown resilience, perseverance, and leadership exemplifying the adage, "If at first you don't succeed, try, try again," with his actions as Chairman of the Federal Reserve. It is the start of a new macroeconomic system that governments have started to employ in their arsenal, all thanks to Ben. He is a king among men and it should be known.
Ben challenged the current economic system by proving that the books were inaccurate. What we learned in university was simply a ruse, a brainwashed methodology that ensured the middle class followed the rules, paid our tuition, watched our investments like sheep, and thought supply and demand existed. How we were wrong. Ben brought to light the misleading information that was clearly developed by a secret society to control fiat currency, to control the world's government, and keep the middle class at bay.
Ben made it clear that hyperinflation was just a scare tactic developed by this secret society, at least in first world countries. When the Fed started printing money in 2008 and 2010, economists all over believed that the value of the American dollar would decrease, that this devaluation would eventually lead to major inflation. People were outraged at the possibility that their money would not buy as many goods and that the country was putting itself in major debt. But Bernanke ignored the fears and acted like a leader, doing what he thought was right, not popular. To the economists that cried the sky was falling, where are they now? Too busy buying goods that cost virtually the same as they did years ago I assume.
My boy Ben unknowingly showed that the stock market is not a leading indicator of the strength of a national economy, a traditional school of thought we blindly followed. The US stock market today is higher than it was in 2007, which formerly would have indicated that the US economy is as strong as it was five years ago. Clearly, with unemployment near 9 per cent and GDP growth tepid, Ben has proven that the stock market acts with free will with no correlation to the despair in America.
And Ben, what resilience you have; all the better to lead us with my dear. The first round of quantitative easing failed and did nothing to help the common folks, so he tried again in what is known as QE2. It failed too, so today he announced a round of bond purchases that will occur every month until the labour market strengthens.
If it were any one else, I would have questioned how buying bonds and keeping interest rates near zero helps create jobs, but because it is Ben, the man that has shown our economic models are wrong, he deserves the benefit of a doubt. In fact, since quantitative easing, unemployment has dropped from above 10 per cent to around 9 per cent today. And in another three years, he predicts it will fall to 7.5 per cent. In 20 years, you will have enough citizens that can afford to purchase a home as you maintain record low interest rates.
The simple plan Ben developed could outlive his tenure as Chairman as well. It allows future Chairmen to follow in his footsteps by lowering America's unemployment rate 1 per cent every three years just by spending $40 billion a month on bonds.
Nobody will give you credit Ben. People will argue that it was the private sector, that you hold no power over unemployment, but look at the proof. You initiated strategies that have existed while unemployment lowered and stock and bond markets rose. Countries adopted your strategies. You are a leader and have enlightened and frustrated the best economic thinkers with your rebellious ways. You stood above when the crowd said "No." You want everyone to own a house by creating super low mortgage rates for the next 20 years. You created a debt so large that you exposed the Chinese as frauds with their "elite" math skills. You inspired millions to start saving and stop spending because it was necessary. Don't listen to the critics. Ben, it was all you.
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