http://www.federalreserve.gov/newsevents/speech/bernanke20080708a.htm

July 8, 2008

Instability in our financial system over the past year or so has importantly affected the availability and terms of credit and the pace of economic growth. The Federal Reserve, together with other regulators and the private sector, is engaged in a broad effort to strengthen the financial infrastructure.

Financial crises have occurred periodically around the world for literally hundreds of years, and it is unrealistic to hope that they can be entirely eliminated, especially while maintaining a dynamic and innovative financial system. Nonetheless, recent experience has illustrated once again that financial instability can have serious economic costs. The Federal Reserve will continue its efforts to make our financial system stronger and more resilient, so that it can continue to play its necessary role of supporting economic growth and making credit available to all qualified borrowers.

Vietnam War Series

Martin Luther King Speech, April 4, 196, Excerpts  Youtube

A time comes when silence is betrayal. And that time has come for us in relation to Vietnam.

They must see Americans as strange liberators. The Vietnamese people proclaimed their own independence in 1945 after a combined French and Japanese occupation and before the communist revolution in China. They were led by Ho Chi Minh. Even though they quoted the American Declaration of Independence in their own document of freedom, we refused to recognize them. Instead, we decided to support France in its reconquest of her former colony. Our government felt then that the Vietnamese people were not ready for independence, and we again fell victim to the deadly Western arrogance that has poisoned the international atmosphere for so long. With that tragic decision we rejected a revolutionary government seeking self-determination and a government that had been established not by China -- for whom the Vietnamese have no great love -- but by clearly indigenous forces that included some communists. For the peasants this new government meant real land reform, one of the most important needs in their lives.

For nine years following 1945 we denied the people of Vietnam the right of independence. For nine years we vigorously supported the French in their abortive effort to recolonize Vietnam. Before the end of the war we were meeting eighty percent of the French war costs. Even before the French were defeated at Dien Bien Phu, they began to despair of their reckless action, but we did not. We encouraged them with our huge financial and military supplies to continue the war even after they had lost the will. Soon we would be paying almost the full costs of this tragic attempt at recolonization.

After the French were defeated, it looked as if independence and land reform would come again through the Geneva Agreement. But instead there came the United States, determined that Ho should not unify the temporarily divided nation, and the peasants watched again as we supported one of the most vicious modern dictators, our chosen man, Premier Diem. The peasants watched and cringed as Diem ruthlessly rooted out all opposition, supported their extortionist landlords, and refused even to discuss reunification with the North. The peasants watched as all this was presided over by United States' influence and then by increasing numbers of United States troops who came to help quell the insurgency that Diem's methods had aroused. When Diem was overthrown they may have been happy, but the long line of military dictators seemed to offer no real change, especially in terms of their need for land and peace.

The only change came from America, as we increased our troop commitments in support of governments which were singularly corrupt, inept, and without popular support. All the while the people read our leaflets and received the regular promises of peace and democracy and land reform. Now they languish under our bombs and consider us, not their fellow Vietnamese, the real enemy. They move sadly and apathetically as we herd them off the land of their fathers into concentration camps where minimal social needs are rarely met. They know they must move on or be destroyed by our bombs.

So they go, primarily women and children and the aged. They watch as we poison their water, as we kill a million acres of their crops. They must weep as the bulldozers roar through their areas preparing to destroy the precious trees. They wander into the hospitals with at least twenty casualties from American firepower for one Vietcong-inflicted injury. So far we may have killed a million of them, mostly children. They wander into the towns and see thousands of the children, homeless, without clothes, running in packs on the streets like animals. They see the children degraded by our soldiers as they beg for food. They see the children selling their sisters to our soldiers, soliciting for their mothers.

What do the peasants think as we ally ourselves with the landlords and as we refuse to put any action into our many words concerning land reform? What do they think as we test out our latest weapons on them, just as the Germans tested out new medicine and new tortures in the concentration camps of Europe?

We have destroyed their two most cherished institutions: the family and the village. We have destroyed their land and their crops. We have cooperated in the crushing of the nation's only noncommunist revolutionary political force, the unified Buddhist Church. We have supported the enemies of the peasants of Saigon. We have corrupted their women and children and killed their men.

Now there is little left to build on, save bitterness. Soon the only solid physical foundations remaining will be found at our military bases and in the concrete of the concentration camps we call "fortified hamlets." The peasants may well wonder if we plan to build our new Vietnam on such grounds as these. Could we blame them for such thoughts?

So, too, with Hanoi. In the North, where our bombs now pummel the land, and our mines endanger the waterways, we are met by a deep but understandable mistrust. To speak for them is to explain this lack of confidence in Western words, and especially their distrust of American intentions now. In Hanoi are the men who led the nation to independence against the Japanese and the French, the men who sought membership in the French Commonwealth and were betrayed by the weakness of Paris and the willfulness of the colonial armies. It was they who led a second struggle against French domination at tremendous costs, and then were persuaded to give up the land they controlled between the thirteenth and seventeenth parallel as a temporary measure at Geneva. After 1954 they watched us conspire with Diem to prevent elections which could have surely brought Ho Chi Minh to power over a united Vietnam, and they realized they had been betrayed again. When we ask why they do not leap to negotiate, these things must be remembered.

Also, it must be clear that the leaders of Hanoi considered the presence of American troops in support of the Diem regime to have been the initial military breach of the Geneva Agreement concerning foreign troops. They remind us that they did not begin to send troops in large numbers and even supplies into the South until American forces had moved into the tens of thousands.

Hanoi remembers how our leaders refused to tell us the truth about the earlier North Vietnamese overtures for peace, how the president claimed that none existed when they had clearly been made. Ho Chi Minh has watched as America has spoken of peace and built up its forces, and now he has surely heard the increasing international rumors of American plans for an invasion of the North. He knows the bombing and shelling and mining we are doing are part of traditional pre-invasion strategy. Perhaps only his sense of humor and of irony can save him when he hears the most powerful nation of the world speaking of aggression as it drops thousands of bombs on a poor, weak nation more than eight thousand miles away from its shores.

I am as deeply concerned about our own troops there as anything else. For it occurs to me that what we are submitting them to in Vietnam is not simply the brutalizing process that goes on in any war where armies face each other and seek to destroy. We are adding cynicism to the process of death, for they must know after a short period there that none of the things we claim to be fighting for are really involved. Before long they must know that their government has sent them into a struggle among Vietnamese, and the more sophisticated surely realize that we are on the side of the wealthy, and the secure, while we create a hell for the poor.

Somehow this madness must cease. This is the message of the great Buddhist leaders of Vietnam. Recently one of them wrote these words, and I quote: “Each day the war goes on the hatred increases in the heart of the Vietnamese and in the hearts of those of humanitarian instinct. The Americans are forcing even their friends into becoming their enemies. It is curious that the Americans, who calculate so carefully on the possibilities of military victory, do not realize that in the process they are incurring deep psychological and political defeat. The image of America will never again be the image of revolution, freedom, and democracy, but the image of violence and militarism.”

During the past ten years, we have seen emerge a pattern of suppression which has now justified the presence of U.S. military advisors in Venezuela. This need to maintain social stability for our investments accounts for the counterrevolutionary action of American forces in Guatemala. It tells why American helicopters are being used against guerrillas in Cambodia and why American napalm and Green Beret forces have already been active against rebels in Peru.

Revolution of Values

It is with such activity in mind that the words of the late John F. Kennedy come back to haunt us. Five years ago he said, "Those who make peaceful revolution impossible will make violent revolution inevitable." Increasingly, by choice or by accident, this is the role our nation has taken, the role of those who make peaceful revolution impossible by refusing to give up the privileges and the pleasures that come from the immense profits of overseas investments. I am convinced that if we are to get on the right side of the world revolution, we as a nation must undergo a radical revolution of values. We must rapidly begin the shift from a thing-oriented society to a person-oriented society. When machines and computers, profit motives and property rights, are considered more important than people, the giant triplets of racism, extreme materialism, and militarism are incapable of being conquered.

A true revolution of values will soon cause us to question the fairness and justice of many of our past and present policies. A true revolution of values will soon look uneasily on the glaring contrast of poverty and wealth. With righteous indignation, it will look across the seas and see individual capitalists of the West investing huge sums of money in Asia, Africa, and South America, only to take the profits out with no concern for the social betterment of the countries, and say, "This is not just." It will look at our alliance with the landed gentry of South America and say, "This is not just." The Western arrogance of feeling that it has everything to teach others and nothing to learn from them is not just.

A true revolution of values will lay hand on the world order and say of war, "This way of settling differences is not just." This business of burning human beings with napalm, of filling our nation's homes with orphans and widows, of injecting poisonous drugs of hate into the veins of peoples normally humane, of sending men home from dark and bloody battlefields physically handicapped and psychologically deranged, cannot be reconciled with wisdom, justice, and love. A nation that continues year after year to spend more money on military defense than on programs of social uplift is approaching spiritual death.

These are revolutionary times. All over the globe men are revolting against old systems of exploitation and oppression, and out of the wounds of a frail world, new systems of justice and equality are being born.

Martin Luther King Vietnam Speech