Time’s Person of the Year Drives the Crisis Spiral
by Claus Vogt 12-23-09
Fed President Ben Bernanke has been named Time magazine’s Person of the Year for 2009. However, in looking back at former People of the Year it becomes crystal clear that this title doesn’t necessarily mean that the honored person has done something good for the world …
It only meant that he or she had made a big influence on the course of history during the preceding year. Some have brought us blessings, while others have brought plagues.
And this year it surely seems that Time’s journalists think of Bernanke as a blessing for the world.
Well, I have to strongly disagree …
It Didn’t Work in Zimbabwe,
And it Won’t Work in the U.S.
It’s really surprising how acclaimed a monetary politician can become nowadays by doing just one thing: Printing money like there’s no tomorrow.
Yet it didn’t come to pass for Leonard Tsumba and Gideon Gono, respectively the former and the current Governors of the Reserve Bank of Zimbabwe. So they may very well feel snubbed by Time’s choice for Person of the Year.
You see, both central bank chiefs were printing boatloads of money long before Bernanke ordered the helicopters into overtime.
Zimbabweans have felt the pain of irresponsible monetary policies. And under their policies, prices for basic necessities were doubling as fast as every 24.7 hours!
Then this past January, with inflation running at 500 billion percent, the Zimbabwe government ditched their dollar in favor of various currencies such as the U.S. dollar, South African rand, sterling and Botswana pula.
Consequently, the government hasn’t been able to attract any budgetary support because donors distrust Zimbabwe’s central bank. FULL STORY