Europe Must Further Centralize Fiscal Power, Claims Fed Boss Bernanke

By:  Alex Newman
08/09/2012
       
Europe Must Further Centralize Fiscal Power, Claims Fed Boss Bernanke

As American lawmakers debate reining in, auditing, reforming, or even abolishing the controversial Federal Reserve System following a growing wave of bipartisan outrage over its bailouts and wild currency printing, discredited U.S. central bank boss Ben Bernanke is actually urging Europe to create a centralized fiscal authority to be more like the United States. But the process is actually already well underway.

As American lawmakers debate reining in, auditing, reforming, or even abolishing the controversial Federal Reserve System following a growing wave of bipartisan outrage over its bailouts and wild currency printing, discredited U.S. central bank boss Ben Bernanke is actually urging Europe to create a centralized fiscal authority to be more like the United States. But the process is actually already well underway.

Apparently the Fed boss believes further concentration of power in the hands of the unelected European bureaucrats — largely responsible for the current crisis — would somehow help quell the region’s ongoing economic turmoil. Free market advocates, however, have argued that the exact opposite is true: For Europe to properly deal with the crisis, it should get governments — and especially the emerging European Union super-state — completely out of the way.

But Bernanke, who has been famously wrong on most key predictions, claimed more centralized power would be required. “If Europe had a single fiscal authority, that would put them in a much closer situation relative to the United States,” Bernanke said during a “town hall” meeting in Washington this week. “That would probably address many of the concerns, many of the problems that they had.”

ABC News inaccurately reported that the U.S. central bank chief had called for the creation of a European “Fed.” However, the American Fed and virtually every other central bank in the world actually deal with monetary policy, not fiscal issues, so Bernanke was almost certainly not advocating the creation of central bank that also has authority over fiscal policy. 

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