When someone asks the question - who is the most powerful person in the world, we (most people) immediately answer The President of the
. He is powerful alright. But is he REALLY the MOST powerful person
throughout the world? I offer a different person to consider. United
States of America
Many people in the
think a guy
named Ben Bernanke is the most powerful person in the world. USA
Who? Never heard of him? Ben Bernanke is the Chairman of the Federal Reserve Board for the
Great. So what does that mean? What does he do?
As Chairman of the FRB, he is the public face of the
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. USA
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.