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Monday, January 7, 2013

Joseph Stiglitz: Central Banks Aren't All That

Posted by on Mon, Jan 7, 2013 at 8:46 AM

Business Insider:

"[The crisis] has shown that one of the central principles advocated by Western central bankers- the desirability of central bank independence-was questionable at best…In the crisis, countries with less independent central banks-China, India, and Brazil-did far, far better than countries with more independent central banks, Europe and the United States. There is no such thing as truly independent institutions. All public institutions are accountable, and the only question is to whom.”
The problem with central banks is not so much their increased independence but how they more and more serve the interests of commercial banks rather than the public or the economy.
He believes that in the run-up to the financial crisis, the Federal Reserve was accountable only to Wall Street, and singles out New York Fed President William Dudley for some especially harsh criticism. He claims Dudley was "a model of bad governance" because of his inherent conflict of interest: he bailed out the very banks he was supposed to regulate – the very same banks that enabled him to gain his position.


Comments (5) RSS

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rob! 1
Another fucked-up Mudede link.

Charles, instead of trying to meet some quota of 4 or 5 posts in the morning, try having enough respect for your readers to get a smaller number right.

You have interesting things to say sometimes, but your contempt for others often gets in the way of that.…
Posted by rob! on January 7, 2013 at 9:48 AM · Report this
Charles Mudede 2
you cracking me up. i almost want to keep this up.
Posted by Charles Mudede on January 7, 2013 at 10:41 AM · Report this
A-fucking-men. Why is Stiglitz not in the running for Treasury Secretary? Besides the obvious of him not being a shill for the bankers, I mean.
Posted by Tent_Liberation_Army on January 7, 2013 at 10:50 AM · Report this
Personally, I have nothing against Stiglitz, it is simply that he is not the brightest of dudes.

Certainly Mr. Stiglitz is an honest man, not a complete poser like Jeffrey Sachs, or fraudster like Krugman, nor a complete idiot like Rober Reich (geez, I wish Reich would just STFU, until he figures out how to do arithmetic!).

But this is a duuuuuhhh kine of article, and wasn't a dood named Timothy Geithner the head of the FRBNY when this whole bailout stuff occurred?

As far as central banksters go, the Rockefeller Foundation established the Group of 30 to represent the central banksters and speculators back in 1978 --- a most pivotal year (around the time of the 401(k) creation scam, the creation of the Business Round Table, consolidation of the US radio/tv media, etc., etc.

Posted by sgt_doom on January 7, 2013 at 10:57 AM · Report this
rob! 5
Charles @2, when you fix a mistake (and you did), own it, don't try to palm it off.
Posted by rob! on January 7, 2013 at 12:12 PM · Report this

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