Where do I start? ZOMG.
Item #1: The Ben Bernank is where he belongs, on the defensive. Let’s keep him there. The Bernank had to go on friendly government TV for a softball interview with 60 Minutes.
- The Bernank: “One myth that’s out there is that what we’re doing is printing money. We’re not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way.”
Since 60 Minutes didn’t ask any real questions or point out any lies, I will endeavor to do so. The lying begins with obfuscation first. Let’s confuse the unwashed masses with banker terminology. Which money supply are you referring to, Ben? M0? M1? M2? MZM? He didn’t say, did he? But his statement sure sounded nice, didn’t it? Does he mean to imply that buying Treasuries ‘sterilizes” his purchases so as to not be inflationary, as if the fed dot gov isn’t going to spend the new money immediately? And the statement about currency in circulation is just too unbelievably stupid. No, he’s not “printing” paper currency, he’s clicking “money” into existence on a computer, $1.8 Trillion so far, with another $600 Billion promised. The printing press isn’t even required anymore.
Do you see how these tools lie to you with a straight face? If anyone else did this it would be counterfeiting, when the Fed does it it’s “Monetary Policy.” Don’t you wish you could go shopping on your computer with as much “money” as you wanted, just by creating it at will and clicking on stuff to buy it? THAT IS EXACTLY WHAT HE IS DOING. And, as he said in the interview, he’s not guaranteeing that he’ll stop at $600 Billion:
- Pelley: “Do you anticipate a scenario in which you would commit to more than $600 billion?”
- The Bernank: “Oh, it’s certainly possible.”
But not to worry, the Fed, with a track record of exactly zero when it comes to managing the economy, will get it right this time:
- The Bernank: “We could raise interest rates in 15 minutes if we have to. So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time. Now, that time is not now.”
- Pelley: “You have what degree of confidence in your ability to control this?”
- The Bernank: “One hundred percent.”
Who believes this crap? Has anyone thought to ask what would happen to fed dot gov financing if the Fed raised interest rates? Guess what? The deficit goes up because the government is paying higher interest rates! The Treasury rolls over (refinances) about $2 Trillion a year, and that number is rapidly going up, since they are issuing lots of short maturity stuff. This is called “roll risk.” Then, higher interest rates make the economy slow down, tax receipts collapse, and the deficit goes up some more! The Bernank is trapped and he knows it. The trap was constructed by Congress and the Fed itself in their decades-long effort to fund the welfare/warfare state. Now they want to balance the whole thing on the backs of the middle class by stealing our savings and living standards through inflation. Bite me.
- “Bernanke’s appearance did offer us a glimpse into his thinking or lack thereof. Many commentators have been stunned by his assertion that he is “100% certain” he can control inflation. I wasn’t. After all, Bernanke’s been nothing if not 100% certain of himself while being 100% wrong for the last five years.””Why break the streak?”
Must-Listen interview with Jim Rickards here:
- “If I had to rank threats to national security I would rank Ben Bernanke above Osama Bin Laden. Osama Bin Laden’s capabilities have been greatly degraded; he’s still a threat, he’s a very serious threat, make no mistake about it, but he’s on the run. Whereas Ben Bernanke is not on the run, he’s sitting in very high office, but he’s actually a greater threat because of what he’s doing to destroy the dollar.”
- – Market analyst Jim Rickards on KingWorldNews
Coming soon, Item #2.
Republicans: “Principles? WHAT principles?”