Rick Robinson is curious about my Big Fat Book Summer Reading. I’ll be posting more Big Fat Book reviews over the coming weeks, but let me share with you The Alchemists. For those of you who aren’t familiar with the banking system, The Alchemists presents one of the clearest descriptions of how our monetary system works. But, that’s just a small part of The Alchemists. The bulk of the book addresses the world’s financial melt-down that we’re still struggling with. Neil Irwin tells his stories through three of most powerful men on the planet: Federal Reserve Chairman Ben Bernanke, Mervyn King of the Bank of England, and Jean-Claude Trichet of the European Central Bank. Together, these three bankers kept the Western World from going off the financial cliff as the housing bubble popped in 2007. After reading The Alchemists, I’m more sympathetic toward Ben Bernanke, who I have been critical of for not doing more to improve the economy. Neil Irwin shows the powerful political forces who resist increasing the money supply (the classic Keynesian solution to a Recession/Depression). The countries who went in the opposite direction–cutting spending–find themselves in worse economic shape today. I’m sure all three of these bankers would have liked to do more to get people back to work and to get their economies growing faster, but the politicians make improvement dicey. We’re just going to have to struggle along. GRADE: A
Some people would rather have us fail than have Obama get any credit for success. No more stimulus packages, which might have meant a world of difference for a lot of folks. Of course, some people don’t give a darn about those folks. Nough said.
Patti, you’re right. I thought after the 2012 things might be different…but they haven’t changed.
No, and they aren’t likrly to change in an appreciable way any time soon.
I still think what we needed is more Lyndon Johnson arm twisting than Obama’s laissez faire methods. When you take away military projects from a Congressman’s district it tends to sharpen his focus on what’s important. No one is afraid of Obama.
Jeff, I agree. Obama should have read Robert Caro’s biographies of LBJ.
I won’t be reading this. I don’t want to be any more sympathetic to Bernanke.
Bill, The Fed and Bernanke have a lot to answer for, but THE ALCHEMISTS shows how their decisions are constrained by politics. Remember what Rick Perry said would happen if Ben Bernanke showed up in Texas?
… and what the people want seems to be the very last consideration of the politicians, especially the tea party and similar thinkers. I vote, I tell my elected officials what I’d like to see them do, but my voice is but a soft cry in the wilderness…
Rick, plenty of us want smarter government and progress. But right now we have gridlock. Nothing is happening.
Just as politician should not be allowed to wage war, they should not be allowed to manage money.
“politicians” plural