Wow. Time Magazine has named Ben Bernanke Man of the Year!  What an inspired choice.  I have a suggestion for next year along these same lines: Emil Ponzi. 

Look gang, I realize that I am nearly alone when I say this, but the Federal Reserve is a bad thing.  It puts control of the printing of money in the hands of politicians. I know that scores of  both academics and pundits would say the exact opposite of this is true and that the Fed is wholly independent.  Sure it is. If you believe that , I have a bridge to sell you in Brooklyn.

The entire exercise is one of long term inflation. This allows the Federal Government to spend even more than it can tax or borrow.  If we were to feel presently the impact of all failed programs the government spends money on - most, if not all of them would cease to exist.  Instead, the Fed churns out worthless paper money which creates long term inflation that ends up making a billion dollars sound more like a million so that soon, a trillion dollars will sound like a billion. 

That means for the average hardworking American, that they can no longer rely on their savings for security and must invest it and take risks just to offset the effects of inflation, as it will take more and more money to retire one day.  This distorts the decision making process and creates the bubbles we all are living in, and sharing  the consequences of.  Our current improvement in the economy, which is seemingly working, is nothing more than the Fed pumping more fictional money into the system and creating another round of distortions that we all will have to pay for later.

So congratulations Chairman Bernanke and Time Magazine for the inspired choice.