Bernanke when renominatedPresident Barack Obama on August 25 renominated current Federal Reserve Chairman Ben Bernanke to another four-year term as Chairman of the Federal Reserve Board of Governors, but free-market economists have concluded that Bernanke's policies are creating the seeds of another economic crash.

BIS building in Basel, Switzerland.Who is William White? The name is bound to be less familiar than that of former Federal Reserve Chairman Alan Greenspan, but they are in similar lines of work. In answer: White was one of the few economists who grew uneasy with the “irrational exuberance” of the 1990s.

The House Financial Services Committee witnessed a classic confrontation July 21 where the redefinition of a word was finalized. The confrontation happened between free market Congressman Ron Paul (R-Texas) and Keynesian Federal Reserve Bank Chairman Ben Bernanke over the definition of inflation. Congressman Paul noted that “inflation is an increase in the money supply,” as indeed the term had classically been understood.

Our politicians in Washington (especially the Obama administration) are following the economic policies of Federal Reserve Chairman Ben Bernanke, who made these economic predictions over the past four years (YouTube Video):

California state capitolOn July 14 California's bond ratings, already the lowest in the nation, took another hit. Moody's Investors Service downgraded $72 billion of the state's general obligation bonds by two steps, from A2 to Baa1. The new rating, just two steps above junk grade, will increase the costs of California's borrowing and deepen the state's financial distress. A few day earlier, Fitch Investors downgraded the state's general obligation bonds from A- to BBB, also two steps above junk grade in its rating system.