The notion that surging asset prices in some way assists ordinary Joe to find a job is one that escapes me. If oil were half the price that it currently is, and wheat and rice, he would find it much easier to heat his home and feed his family, and find a job in addition. This seems not to occur to the likes of William Dudley, the holder of the Goldman Sachs seat in the Federal Reserve, a privately owned bank which has the monopolistic rights to issue money to the American government, municipalities and corporations.
The instant result of the coming much talked of Quantitative Easing 2, which Bernake will announce tomorrow, will certainly jack up massively the level of Goldman Sachs’ profits. That is without question, and those of the hedge funds and trend followers who ride like barnacles glued to Goldman Sachs’ ‘hull, as they fix ever bigger market swings in their own favour.
This from Jon Nadler on Kitco:-
Goldman Sachs sees the Fed’s expected easing as helping the US avoid the “very bad” fallout from a renewed recession. Goldman sees the American economy as only “fairly bad” in the coming half-to-three-quarter of a year (a lot to say, all in a day, by one firm; a firm whose seat at the Fed is filled by…Mr. Dudley).
Forgive me for having my doubts as to the motivation of the individuals running the Fed, who also run big investment banks like Goldman Sachs. The foxes are in charge of the chickens. The chickens don’t suspect a thing.
William C. Dudley ‘s Bio from The Fed’s website.
William C. Dudley became the 10th president and chief executive officer of the Federal Reserve Bank of New York on January 27, 2009. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee (FOMC), the group responsible for formulating the nation’s monetary policy. (The BIS is the Central bankers’Central Bank located in Switzerland, which is another privately owned business which controls the world’s money supply, trusted to act in the interests of the public, but which, it has to be remembered, is a profit-making organisation seeking its own interests).
Mr. Dudley had been executive vice president of the Markets Group at the New York Fed, where he also managed the System Open Market Account for the FOMC. The Markets Group oversees domestic open market and foreign exchange trading operations and the provisions of account services to foreign central banks.
Prior to joining the Bank in 2007, Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and was the firm’s chief U.S. economist for a decade. Earlier in his career at Goldman Sachs, he had a variety of roles including a stint when he was responsible for the firm’s foreign exchange forecasts. Prior to joining Goldman Sachs in 1986, he was a vice president at the former Morgan Guaranty Trust Company. Mr. Dudley was an economist at the Federal Reserve Board from 1981 to 1983.
Mr. Dudley received his doctorate in economics from the University of California, Berkeley in 1982 and a bachelor’s degree from New College of Florida in 1974.
Mr. Dudley serves as chairman of the G-10 Committee on Payment and Settlement Systems of the Bank for International Settlements.
He is a member of the board of trustees of the Economic Club of New York.
He was a member of the Technical Consultants Group to the Congressional Budget Office, 1999-2005.