Posted by Anthony Gregory on 11/30/09 6:13 PM   [Newer: Obama's Eight-Year Plan] [Older: Pat Boone: Bring Our Troops Home Now!]

Fed Chairman Bernanke, who faces confirmation hearings this week, has written an op-ed criticizing those in Congress, and presumably the rest of us, who would curtail the central bank's powers or meaningfully audit its operations. Robert Higgs provides a good deconstruction of this "preemptive attack":

Ben Bernanke is taking no chances. With his confirmation hearing for continuation as chairman of the Federal Reserve System only days away, he has written an op-ed for publication in Sunday’s Washington Post. We may interpret this article as a preemptive attack on his congressional critics, some of whom will no doubt take the opportunity afforded by next Thursday’s hearing to attack his management of the Fed and, indeed, the Fed itself.

Monetary-policy propaganda is a high art, and lay readers of Bernanke’s article may well be taken in by its artful formulation. Therefore, as a public service, I offer the following brief commentary, interweaved with CNN’s Saturday report on Bernanke’s Sunday op-ed.

NEW YORK (CNNMoney.com) — Federal Reserve Chairman Ben Bernanke, just days ahead of his confirmation hearing, is warning Congress that actions limiting the central bank’s independence could prove detrimental to the causes of financial reform and economic recovery.

Such a warning seizes the high ground by creating the presumption that Bernanke and the present Fed have proved themselves to be beneficial to the causes of financial reform and economic recovery. In the circumstances, that’s a highly questionable presumption. Some of us are inclined to believe that, all in all, the Fed and its glorious leaders, especially Alan Greenspan and Ben Bernanke, got us into our present troubles in the first place and that they have done nothing wise of late to repair the damage they brought on us, acting instead to create enormous risks for our future well-being and, in particular, great risks for the future purchasing power of the U.S. dollar.

Read the rest.

Posted 11/30/09 6:57 PM BigJohn Oak Park, CA

Warning? It sounds more like a threat to me. He's basically saying that we should be careful. If we do anything to endanger their independence, there will be "consequences". It's the same thing mobsters used to do. They'd tell you there would be a price to pay, without actually defining what that price is. They assume that their reputation is solid enough for you to figure it out for yourself.

Posted 11/30/09 8:44 PM VictimOfFeds San Clemente, CA

It's amazing how former Fed Chair's stick together. They're like the NBA officials. It's also unbelievable that screwing up big time in the public sector leads to a promotion whereas screwing up in the private sector leads to a pink slip.

Posted 11/30/09 8:46 PM VictimOfFeds San Clemente, CA

“we should be seeking to preserve, not degrade, the institution’s ability to foster financial stability and to promote economic recovery without inflation.” I can't believe how detached from reality these guys are. Are they really that unaware of what's been going on the past several years???

Posted 11/30/09 10:05 PM redshirt Philadelphia, PA

Higgs is awesome! Ditto on the above posts. I hope they make this guy sweat the confirmation ... lose some more hair and get some more grays.