Friday, June 21, 2013

Most Powerful Person

When someone asks the question - who is the most powerful person in the world, we (most people) immediately answer The President of the United States of America.  He is powerful alright.  But is he REALLY the MOST powerful person throughout the world? I offer a different person to consider.
 
(Courtesy: Yahoo)
 
Many people in the USA think a guy named Ben Bernanke is the most powerful person in the world. 
Who?  Never heard of him?  Ben Bernanke is the Chairman of the Federal Reserve Board for the USA. 
Great.  So what does that mean?  What does he do?
As Chairman of the FRB, he is the public face of the USA’s central bank.  He sets two important interest rates based on how the economy is doing.  The first is called Discount Rate.  This is the rate at which banks can borrow money from Federal Reserve Bank.  The second is Federal Funds Rate.  This is the rate at which banks lend money to other banks. When the Fed Chairman (currently Bernanke) changes any of these interest rates, he affects millions of people and businesses around the world.
He also controls the number of US dollars floating around the world economy.  What he does has a huge effect on the exchange rate of a currency.
Bernanke has many speaking engagements.  Of course people want to hear what he has to say and they want to hear him often.  Everything he says has an effect on your wallet and purse.  A word or sentence here and there can make your wallet heavier or lighter.  Yes, he has that much influence.
The financial world is carefully listening to every word he says and the stock market reacts accordingly.  He cannot even give a casual remark for the fear of making a disruption in the stock market.
Remember the stock markets all over the world have been crashing this past week.  Why is that happening?  It’s because Mr. Bernanke said he is thinking of reducing the massive stimulus program.  (Please remember all he said was he is thinking about it.)  One newspaper headlined “Bernanke unleashes virtual tsunami in financial markets” around the world.
There are reports that some newspaper reporters are searching through the Fed Chairman’s garbage and trash bins so they can have more insight on him.  They even investigate which books he reads and what movies he watches at home so they can get a clue into his thinking.  Sorry Mr. President, you are not #1.
Bernanke is #1 Obama is #2.

19 comments:

  1. Who Posted This?June 22, 2013 at 9:19 AM

    I see Ben Bernanke commented on your blog previously – “BUMPING”
    Bernanke (Fed Chairman) and Obama (USA President) – neither one is more powerful or more influential than me. I can sink Greece and Spain in less than two complete sentences…and let’s see how that plays out in the world economy.

    Regards,
    Angela Merkel
    (FEAR THE FATHERLAND BABY! EVEN WITHOUT A MILITARY!)

    ~ The following conversation took place, when I landed at Paris Airport, with an immigration and customs officer.
    Officer: Name?
    Me: Angela Merkel
    Officer: Occupation?
    Me: No…just staying for a few days.

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  2. I did see the headline, but I didn't read the article. Not much familiar with financial terms/concepts. Thanks for the input, now I can use this name elsewhere in order to appear being slightly aware of financial happenings :)

    Destination Infinity

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  3. Thanks for your comments Angela. I remember you. You were the one using the Rolling Stones hit song ANGIE without their permission in your election campaign.

    If us guys (USA) did not help France during World War 2, they would still be speaking German language. And, you won’t have to go through Immigration and Customs at the Paris Airport,

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  4. Thanks for your comments Rajesh. He has been in this job too long. His term comes to an end in January 2014. Looks like Obama is not going to renominate him.

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  5. A correction Angela. When the French immigration officer asked "Occupation?", you replied something in German. That did not translate to "No, just staying for a few days".

    I was there standing next to you. You replied in German "Nein. Nicht dieses mal". English Translation: No, not this time.

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  6. Thanks for this post..now a days Indian news papers are ful,l of Bernanke effect and I didnt know anything about it..

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  7. Thanks for your comments Renu. I hope you are not in the market for a loan (home or auto or anything else). By Bernanke saying he is "thinking", it will be difficult to get a bank loan.

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  8. Thank you for giving such an info about Bernanke. A very useful topic. At least we understood something about the how and what of US market.

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  9. Thanks for your comments Sarala. I am glad this post was of some use to you.

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  10. Western Academy
    Till Now USA President Was The Most Powerful Person For Me,But After Reading This Post Ben Bernanke Is Indeed Powerful Then Any Other.

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  11. Thanks for your comments Krishna. I am glad you liked this post.

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  12. Thanks for your comments IELTS in Bhosari.

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  13. Good one... Nice to read about the most powerful person..
    How I wish I can blog and visit blogs as i was doing in the past...I am trying to organise things SG, will try to be regular now..

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  14. That was enlightening and interesting! Have never heard about the man :P

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  15. Thanks for your comments Chitra. I know you are busy. But, please visit here as often as you can.

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  16. Thanks for your comments Shilpa. I am glad you liked this post.

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  17. interesting and informative. Never knew about him.

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  18. hey. I did post a comment on your last blog :-).
    Thanks for the info on Mr.Ben, bet my husb knows about him.
    TC
    Z

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