Ransome

Replace Ben Bernanke with Paul Volcker

I'm thinking the deposit banks are not up for paying more interest on deposits. This may be a poor reason to hold rates down but it could push them over the edge. The flow of money is chasing short term returns instead of long term investment. Goldman is going gangbusters because they can borrow short and invest short. Deposit banks can not do that. If interest rates climb and the deposit banks don't respond, money will flow like a river out of the banks. This is a big experiment in financial capitalism where moving money for short term gains becomes 40% of GDP, replacing industrial capitalism which is now less than 10% and agriculture which is 1%. The Fed is captured.

Look at the stock market, we no longer value companies, we play the pricing spread, the asymmetric information spread, not the value spread. Everyone is a crook because there is so much money to be made the fast way. It is almost beyond regulation. Besides, this money generated by financial capitalism is kept from the so called "productive forces" that make a society and a national economy strong. People seeking Alpha don't want to hear this, but the productive forces are so weak, you can't even give money away. Without productive forces, money becomes valueless, hence the move into gold. You don't need burning inflation to destroy the value of money. I'm sure we will muddle through until the next collapse because financial capitalism is not sustainable by itself.

We fueled the productive forces in Asia, weakened the productive forces at home, while fueling the speculators at home. The bailout further damaged the weakened productive forces at home and bailed out the speculators. This is why we need Volcker, Bair and Warren. I think they understand.

The monetarists and the Chicago School must be banned from the economy and take Harvard while you are at it as they are a big promoter of financial capitalism, the economic Nosferatu that drains energy from the productive forces. Warren must have been considered an Alien from Outer Space at Harvard as she did not support borrow and spend nor debt till you drop.