Tags: steve forbes | federal reserve | janet yellen | lawrence summers

Forbes to Moneynews: Yellen, Summers Both 'Pretty Sorry Choice' for Fed Chief

By Dan Weil and John Bachman   |   Monday, 29 Jul 2013 05:07 PM

Forbes Media Chairman Steve Forbes doesn't think too highly of either of the two favorites to become the next Federal Reserve Chairman – former White House economic adviser Lawrence Summers and Fed Vice Chairwoman Janet Yellen.

"This is the equivalent of people running to be chief astronomer who still believe that the sun revolves around the earth -- pre-Copernican economics," the Forbes magazine editor and former presidential candidate tells Newsmax TV in an exclusive interview.

"Neither understands that money comes from people doing things with each other: transactions with each other, being innovative, entrepreneurial," he said. "They still think it's just printing pieces of paper."

That leaves "a pretty sorry choice," Forbes said.

Watch our exclusive video. Story continues below.

Editor’s Note: Put the World’s Top Financial Minds to Work for You

Forbes is president and CEO of Forbes Inc. He ran for the Republican presidential nomination in 1996 and 2000, urging the adoption of a flat income tax with a single tax rate.

His latest book is "Freedom Manifesto: Why Free Markets Are Moral and Big Government Isn't."

Forbes opts for Summers as the lesser of two evils. "Summers at least has some experience in the real world," Forbes said. "Janet Yellen has been ensconced in a bubble for most of her life."

Forbes would prefer "somebody like David Malpass, who understands what money is, understands central banking, understands the need for a stable dollar, normal credit markets."

The economist served in the Reagan and George H.W. Bush administrations.

Instead, the Fed is ensconced in a Keynesian world of money printing, "distorting the credit markets like a pretzel," Forbes said.

"That seems to be the order of the day, and the amazing thing is the more the Fed does, the worse the economy does. But like doctors in days of old, when a patient got worse they'd bleed the patient more."

Editor's Note: See more from the exclusive Newsmax TV interview:

• Forbes: Stable Dollar, Flat Tax Would Send Dow to 25,000

• Fed Has Destroyed Credit Markets

• Forbes: Obama in a 'Bubble' as US 'Crumbles' Under Obamacare

• Forbes: Obama Waging War on New Energy

• Forbes: Reforms to Corporate Tax Codes Means Billions in 'Free Money'

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