TIME magazine’s current choice for their PERSON OF THE YEAR is Ben Bernanke the chief f the Federal Reserve whom they claim prevented an economic catastrophe. One might ask how this mild-mannered man accomplished this monumental task – single-handedly? It was simple – he just printed the money or better yet since that consumes so much paper and ink and people would see it as waste, he simply create it electronically with numbers by moving a few numbers and decimal points around. This was perhaps the greatest theft of all time, making Sir Francis Drakes capture of a Spanish treasure ship in 1579 a vanishingly small theft by comparison to Ben’s.
Some might complain of my accusation of criminal theft but I believe that Adam Smith the founding father of our two hundred year-long economic boom of Western Society would agree. In such matters Smith would recommend standing back and let those people who had made a mess of the monetary policy and who created the fiasco suffer the paying of the Piper. What has been done instead is to save those who ruined the economy by saying they are too big to be punished. They are too important to let fail! They are instead to be rewarded for their avarice and stupidity so they can lead America to a brighter tomorrow. Piffle! This policy will force the American working people to pay instead of the monetary manipulators of Wall Street and so Ben’s policy is punishing those people who are paying taxes and rewarding those who should have lost their pants. Or better yet should have been given stripped jail-bird pants for their various kinds of fraud.
It is difficult to know what money actually is but there are some simple comparisons which hold up over a thousands of years of time. Such as, what will an ounce of gold purchase for you in the market place? It has been said to be approximately: a really nice set of personal clothes of the era, a good quality personal weapon of the era or a month’s rent in a boarding house. The numbers on the paper money, which supposedly translate into purchasing power, can change very quickly if the government issuing the money just prints the money with bigger numbers on it. However, those new numbers don’t represent anything of market place value they are fraudulent numbers buried in political verbage.
With the abandonment of gold as the standard for portable value that paper money didn’t represent anything but good will because it wasn’t tightly linked with anything of market value. With the creation of electronic money the relationship is even more tenuous in fact it is nonexistent and its value is based on good will of the creators of the money, a good will which is clearly been betrayed. Really big-ticket value these days is in ownership of stored energy, such as coal, oil, hydro and nuclear power and in the potential value of a nations workforce. Mostly the value of money is now in the working classes ability to create valuable products. America’s workforce has been very capable of producing wealth in the past compared to other countries workers but with the peace and general prosperity of the last several decades the other nations have been able to develop the skill of their workers. Those nations are going to continue displacing American workers because of the ease of mass transportation of physical goods around the world that was manufactured in these other countries. Valuable information is even easier to be transferred electronically throughout the world. The relative value of American workers compared to foreign ones will continue to drop. That will not mean a drop in living standards for Americans but rather a modest raise in their living standards but it will mean a tremendous improvement in living standards for people in the new value producing countries.
Ben Bernanke saved the American economy by fabricating money based on the potential productivity of the American worker. However, the source of this apparent wealth isn’t clearly acknowledged or perhaps even known. However, because of the relative drop in American productivity compared to say, the Chinese, this policy will not be as beneficial as the political pundits pretend that it is going to be. Inflation of the price of things is always the outcome of putting bigger numbers of the medium of exchange. It works because it fools most of the people most of the time but not all of the people all of the time. One hopes Bernanke isn’t fooled into thinking he created value by creating numbers on electronic money accounts. However, the middle class probably thinks they are getting something when they get fake electronic money squirted into their bank accounts. They are aware of the real money they are paying in taxes but there is a disconnect between what they pay for and the fake money they get and they are trapped by the simple fact that the thieves are the ones writing the laws.
In looking over the list of TIME magazine’s Person of the year since 1927, of which Ben Bernanke is the most recent example, they are mostly the top politicians of the western world. They were very important in forming the ongoing events of their time but very few if any will be remembered by anyone but history buffs in 500 years. The founders of great countries or empires might be remembered or great generals if they are successful in capturing vast areas and founded an empire. But no one succeeded in doing that since 1927 and only Hitler attempted it and fortunately for us he failed. The astronauts who first set foot on the Moon will remain memorable and that would be Armstrong and Aldrin but they aren’t listed. Instead TIME has the first astronauts to circle the Moon whose names are already forgotten. Andy Grove the creator of the microchip deserves lasting fame but his name will surely be forgotten. Gordon Moore might be remembered for Moore’s Law but by then it will be forgotten when it ceases to work. By my standard of famous in 500 years not a single person on TIME magazine’s long list will qualify. Tomorrow I will give some suggestions of people who will qualify and the reasons for it.