Headline March 12th, 2012/ THE BANK OF CENTRAL COCOON

THE BANK OF CENTRAL COCOON

Respectful Dedication Alan Greenspan - Mario Draghi - Milton Friedman

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Alan Greenspan

Mario Draghi

Milton Friedman

Let me devastate you and wake you up with an opening statement from Nobel winner, Prof John Maynard Keynes, "There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose!!!?

Every country has to have a 'Central Bank' to manage its money and all its financial affairs. And when the world was so placed and saner, Central banks' primary function was to orchestrate 'economic forces'. And when the world started to go insane, the Central bankers can only react to these economic forces. What nobody will tell you is that 'Governments have lost control of International value of their currency. A single integrated world market for tradeable financial assets is taking shape. But nobody can be economically quarantined.

How the world fares in the days ahead, say next 5 years, will depend a great deal on the class of leadership, conceptual grasp, decisiveness, that central bankers bring to the operations. Pakistani students need to find out how many central bank chiefs left in the last year? And all students need to find out why Alan Greenspan was asked to stay on for so long!!?

The present Fed Chairman in the U.S. is under withering criticism from both the right and the left with Newt Gingrich calling him the most "dangerous" chairman in U.S. history!!? With Mitt Romney threatening not to reappoint him. But you readers should not forget that Ben Barnanke is the single individual responsible for preventing a melt down in America in the crash. In the days ahead, being a Central Bank Chief, would be one of the most challenging and the most powerful position in any country. Nothing examplifies this more than the true Savior of Europe, Mario Draghi. Just after taking over as the ECB head, he bought crucial time for Europe's leaders to make structural changes to the countries economies and begin moving towards growth.

ECB's swift and decisive actions were exactly what the American Central Bank had executed in a crises some years ago. The historical lessons are not lost on the world when America did not have an Central Bank, and had a earthquake in 1906 that led to a depositor's panic. Within a year the GDP collapsed, the stock market declined 50% and unemployment zoomed. And with this Good night and God bless.

See ya tomorrow as the post continues.

SAM Daily Times - the Voice of the Voiceless.