Federal Reserve of Europe: Bernanke Says Europe Needs a Fed
Ben Bernanke has called for a central economic organization in Europe – more powerful than the ECB – that would help ease crises on the continent.
“If Europe had a single fiscal authority, that would put them in a much closer situation relative to the United States,” Bernanke said today. “That would probably address many of the concerns, many of the problems that they had.”
European leaders have heeded the recommendation of global plenipotentiaries and technocrats, promising to, by this summer, create such an organization. The creation of such an institution, provided there is no further major crisis, could take months or years.
Bernanke made the call during a townhall meeding to public educators in Washington. Bernanke signaled that “getting to that point is very difficult.”
Speaking during a townhall to public educators in Washington, Bernanke admitted “getting to that point is very difficult.”
“You have 17 different countries,” Bernanke counted correctly. “Each set of taxpayers want to make sure that their own country is being fairly treated.” That’s a lot of meddlesome outsiders.
The Fed’s current chairman said newer regulatory measures would be needed to properly police the crises in Europe, such as the Dodd-Frank Act and the Basel, Switzerland accords. As some will recall, Business Week laid out the incredibly convoluted Dodd-Frank Act in an infographic, as the bill defied apparently defied the English language.
At the international level, Bernanke celebrated the Basel accords and the agreement to increase reserve capital requirements for the largest banks. He said the measure would create a financial system that is “as resilient as possible.” And screw plenty of smaller banks in the process.