The Fed's Philosopher King

[Geee]

American Spectator:

Having one man control the money supply of 311 million Americans is itself a fantastic and unreal notion. When you then consider the effects of the U.S. Dollar on the remaining 6.6 billion people on this planet, the idea becomes unimaginable.

Meet Ben Bernanke: the dollar's whimsical "Philosopher King," and the Chairman of the U.S. Federal Reserve. He is arguably the most powerful person in the world, with powers far surpassing those imagined when his position was created. Who knew the Fed Chairman could become so influential?

Well, perhaps there are some who foresaw the potential. In the Communist Manifesto, Karl Marx listed ten absolute principles for overturning capitalism. Number five on his list is the most relevant when discussing the Federal Reserve: "Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly."

Even the early Communists acknowledge this as a path to destruction, to say nothing of the Founders. Who does King Ben answer to? He is not an elected official. Where does a man who makes multi-trillion dollar bets and has control of the world reserve currency and its printing presses get such authority?

Chairman Bernanke only indirectly answers to the President. He can be impeached for a crime, but not for incompetence. The President appoints the Chairman, but once confirmed neither the Federal Reserve Chairman nor the Federal Reserve Governors can be removed for their policy views. So, like a union worker, the Federal Open Market Committee (FOMC) can't be fired. All the Chairman has to do to get reappointed is help get the President reelected.

If you think the rest of the FOMC has any oversight on the Chairman, think again. As the anointed "sun king of currency," no Federal Reserve Chairman can long tolerate discord in his ranks. The pressure for the FOMC members to follow the lead of the Chairman is immense.