Fed Chairman Ben S. Bernanke, testifying before a House committee, acknowledged that some confusion has cropped up as Fed officials have tried to explain their plans for ending the Fed’s stimulus policies. (Pete Marovich, Bloomberg / July17, 2013)
On July 18, 2013, Jim Puzzanghera writes in the Los Angles Times:
The Federal Reserve‘s efforts to explain how its unprecedented economic stimulus will be phased out might rattle Wall Street, but Chairman Ben S. Bernanke said the aim is clear — avoiding a severe market reaction that would hurt home and auto buyers.
“We’re very focused on Main Street. We’re trying to create jobs. We’re trying to make housing affordable,” Bernanke told lawmakers Wednesday in what might have been his last testimony before a House committee.
Ben Bernanke and the Federal Reserve banking system, including Janet L. Yellen and Lawrence H. Summers, both potential choices for replacing Bernanke, have yet to support the policies that will result in substantial double-digit GDP growth while simultaneously broadening, private sector individual ownership in FUTURE wealth-creating, income-generating productive capital assets.
What is needed is to implement the Capital Homestead Act. (http://foreconomicjustice.org/?p=8942)
Right now the Federal Reserve creates money by loaning it to banks, who re-loan it multiple times because of fractional banking rules. With Capital Homesteading, money would be created by loaning it directly to citizens via banks at near-zero interest to invest in FUTURE wealth-creating, income-generating (full dividend payout) productive capital assets formed by producer companies. To build real wealth and also phase out our near-defunct social security scheme, the new full-reserve money would go into a long-term retirement account to be invested in dividend-paying, asset-backed shares of corporations. That way, money power would be spread to all citizens. The middle class would be invigorated using the principle of compounding interest, instead of being decimated by mushrooming public and personal debt.
The Federal Reserve could play a more positive role, removing artificial barriers to equal citizen access to acquiring and owning productive capital wealth. By creating asset-backed money for production, supported by growth-oriented tax policies, the Federal Reserve could truly help promote shared prosperity in a market system.
Support the Agenda of The Just Third Way Movement at http://foreconomicjustice.org/?p=5797
Support Monetary Justice at http://capitalhomestead.org/page/monetary-justice
Support the Capital Homestead Act at http://www.cesj.org/homestead/index.htm and http://www.cesj.org/homestead/summary-cha.htm
http://www.latimes.com/business/la-fi-bernanke-house-20130718,0,6121294.story
http://www.latimes.com/business/la-fi-bernanke-successor-20130719,0,2314583.story
