24 July 2008
Bernanke admits Federal Reserve caused the Great Depression, is somehow under the illusion that they won't do the same again... (2002)
Transcript of remarks by Ben S. Bernanke at a conference to honor Milton Friedman on the occasion of Friedman's ninetieth birthday, (8 November 2002):
At the time of these remarks Bernanke was a "mere member" of the Board of Governors of the Federal Reserve System. He began his 4-year term as Chairman in early 2006. Below I've copied the end of the speech, though I do recommend checking out the whole thing. His is an admission I've never seen made so candidly by a representative of the Fed. His illusion, his delusion in saying this is that he thinks the Fed won't cause the same havoc again. And yet that is exactly what the Fed was doing in 2002 (what it seems to have always been doing since its inception in 1913), and it is what they are still doing today...
"Let me end my talk by slightly abusing my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again." - Ben S. Bernanke [emphasis added!]