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100% Sure Thing?
Bernanke did himself and the American people a great disservice tonight. He said that he was 100% certain that “He” could contain the consequences
of his policy of quantitative easing. No person in a position of
responsibility should make such bold statements. There is always risk.
Bernanke’s TV fireside chat was a bomb as a result of this gross misstatement of the risks of the Fed's monetary policy. There is a “zero” chance that QE will end badly?
Please, that is idiotic and insulting. The thousands of people around
the world who have stood up and said it is voodoo economics are all
wrong? Talk about hubris.
I’m not going to write the article documenting the Fed’s prior mistakes.
To suggest that they will not err this time around is too much of a
stretch. Ben should have acknowledged that there is risk. That he and
his mates don’t sleep at night knowing they have crossed a line to the
dark side of monetary policy. I wanted to see a humble Ben. One who said
that he is facing a daunting task, one where the risks of action and
inaction are substantial. But he chose to brush it all off. He is either
blind to history (that he claims to study), he is lying or he made a
boastful statement of his powers that are totally unjustified.
History is unkind to those who look into the future with myopic eyes and
see the outcome of an uncertain world as 100% certain. Ben made some
history tonight, but we won’t know about it for a few more years. Then
we will be looking at Ben’s video with both a laugh and a cry.
For the record. Ben is not printing money. He is monetizing debt. He is,
in effect, financing the current deficit of the government. He is
actively intervening in the bond market. There is no limit that has been
established for this policy. Ben said tonight he would do more if it
suits him. Monetizing debt is a desperate act. That we are doing it will
make us desperate.
In my opinion QE is not necessary and exposes the global economy to a
variety of risks. There will be little benefit to the US economy. We
will have a long-term headache as a result. Ben’s persistence with QE at
this juncture looks like a gamble by a desperate man. He was slapped
down of late and made the unusual (unprecedented?) step of going on
nationwide TV to say that all is well and not to worry.
I’m worried. I think the market for the dollar and gold will read it as I do.
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+1 to Mr Poopra and may I just add on another note that:
"I have 100% confidence that I do not know what will happen to me or this world one second from now let alone one hour from now, let alone one day, week, month, or year from now. That is about the only thing I can state affirmatively with 100% confidence."
-take that to the bank bitchez!
I know this is naive, but imagine just what if.....just what if....the reason for the quivering lips is that The Bear-shank has realized during Hannukah that he is not the light unto the world, and worse yet, his actions, deeds, and lack of compassion for his fellow human being (vis a vis the wreckage his management brings to the world by being an agent of the banking cartel) will indeed affect him personally.....that is to say, there will be not one person in the civilized world who will not suffer from this mess. It may be only the offspring of his first grade teacher, or his favorite person at the country club when he was a child, or perhaps a distant relative, but their suffering and pain will be on his soul. Crap, my lips would be quivering too! I don't even think I could get such words out of my mouth. I mean, come on folks, the guy is not a total idiot...he has to know what he is doing and what it will mean to the human race. There has to be some kind of conscience inside his head there somewhere.
Again, I know I am naive. But what if?
A very good point, and one i ponder often. These people are not stupid despite how comfortable we get with hyperbole. Let's be honest, they know exactly what they're doing...that implies it's evil not stupidity we are talking about. This was done by design.
"There is a “zero” chance that QE will end badly."
If it never ends, it can't end badly.
I am 100% certain that he has to say that he is 100% certain. I am also 100% certain that he is 100% wrong ... deflation will arrive, come hell (falling prices) or high water (hyperinflation)
How are you going to me measuring that deflation? In gold, then yeah I agree deflation. In dollars, well Ben is locked and loaded to kick us into scientific notation. Can't think there will be deflation in dollar terms with nearly infinite fiat rolling out.
When the division of labor is no longer fractionalized into smaller and smaller fragments, the reverse of leverage comes due. This is what cannot be allowed to happen. Falling off the edge of forever increasing specialization (the need/want thereof) causes untold turmoil. Backyard gardens (even in limited production) are just one example.
I would hate to be involved in government at any level when the truth starts setting in that there is no recovery, there never was. Millions of people will be missing their unemployment checks in the weeks to come. That's a lot of very pissed off of people with too much time on their hands. Riots are next. There will come a time when the streets will be lined with the mangled bodies of these government officials. They won't even make it to the underground bunkers.
"Absolute certainty is a privilege of uneducated minds and fanatics. It is for scientific folk an unattainable ideal."
Cassius J. Keyser, 1862 - 1947I am sure the MIT education makes him realize this, it seems to be a cry of desperation
I noticed his bottom lip was quivering and he was holding down his one arm during the interview. He looked a little shaken. This was purely for damage control. The interviewer had basically said that the interview was a rarity amongst Fed Reserve chairs.
It was his upper lip that was really twitching - esp. when he was talking about unemployment...
test
It was choreographed for the layman to not panic, go shop all is well, and buy stocks we are on the mend. just like march 09 when he showed up on 60min, Obama will probably come out in the morning and make some back of the hand comment like 09 to go buy stocks. they have the market sitting right on the launch pad to take off. a little CNBS bull crap in the morning and we are off in the manipulated market.
the right follow up questions to his rehearsed answers would have really made his lips quiver.
shop to defeat the terrorists, where have i heard that?
The same place you heard, "Thanks for traveling."
Ben said exactly what he wanted to say for the exact reasons he wanted to say it. He most certainly didn't say what he believed, but what he believes we need to hear, and I'm quite sure he thinks most of us will believe him, and he's no dumbass, ZH'ers can be ignored for now, because he knows the critical mass wants to believe him.
What, Me Worry? Bruce come on, "The fundamentals of the economy are sound."
The Fed has a dual mandate.
sarcasm off: oh, shit I can't even type it and keep a straight face! I have no idea how Bear-shank can possibly do it on tv. Oh man, we are all fucked.
What if war breaks out in Koreas, Pak - India, Iran?
What Ben will do then?
the stock market will rally on war with any of them, after all we can kick anybody's ass, especially the countries mentioned. Remember the market bottom in 03 when Bush did Iraq. But they're humanitarians, after all, before they go to war they must pray, and explain it to the American people, and cherry pick the facts. we don't rush into these things, but when we do, don't get caught short.
in a war, it is only about resources, who has the most and who can make theirs last longest to reach victory. Money is only then a vehicle to access resources. The Fed and Government have erroneously focused on the currency system, rather than resources. Our country needs to go into survival mode, not trying to preserve this farce via monetization. We need our leaders to awaken to this fact quickly. Failing that, we need a core community to awaken to this and protect ourselves and our families. We can only do it as a nation. There is still time, but we need change we can believe in, which has eluded us (aside : this may be the biggest failure of a presidency i have seen in not rising to respond to a crisis properly). We need new leadership, and a rapid focus on resources and self sustaining technology.
Bernank = Rank
Here's a question for you, Bruce.
The Bernank made the audacious, but very smooth claim that the $600 million is coming from the FED reserves, the $600 million is not coming from tax monies and the $600 million (in the context of the 60 Minutes interview) will not add to the federal deficit.
Do you think that means the FED's private shareholders are putting up the $600 million?.........or is that just too complicated for the average American with only high school education to understand?
LOL.......fuck off, please!
When I heard the 100% guarantee, I knew instantly none of the interview is for us, the investors. This interview is for all those potential consumers that need to literally tear the purse strings from their bank accounts and blow it all for one last christmas orgy of spending.
Every investor knows intuitively or has already learned multiple times that 100% is a fool's dream. But of course, 'The Bernank,' is NOT an investor. He's a political banker who's mandate is to keep the status quo going as long as he can.
Is Bernake that nervous all the time? His speech was very jittery.
Here's the Ben Bernanke 4 days prior to his nomination. Surreal. He and Mickey Levy must have share a bong before the show. (How else could any two adults have had the nerve to have spoken such outrageous trash with the cameras rolling? Brad Steser showed up sober.
http://www.c-spanvideo.org/program/USEconomicOutloo
The Ben Bernanke looks like an ambitious man saying all the "right", although incorrect, things.
No worries, by the time Bernak is finished every fucking American, save the oligarch/plutocrat class, is certain to have no more than a high school education...........massive servant class on its way.
What a fucking asshole.......there is no nice way to put it.
Give me arrogance or give me death........quite a piece of circular logic from no losses beyong $200 million to QE 1 is a one off to the CBS 60 Minutes theatre of the absurd.
Back to reality all, and momo the Pomo tomorrow.
RoRo
You missed the best line.
All our problems are education problems. If every American was a college graduate then the unemployment rate would be 5%.
Where do I sign up for Crimepays 101, Skimit Coming and Going 102, and Phuckthelittlepeople 103 ?
Princton
I believe Ben himself taught most of those classes, and now Krugman took a lot of that workload on. A respectable selection: His 315 Pillaging Though the Ages, Econ 666 Keynesian Voodoo, Com 227 Lying on Camera, Acc 418 Repo 515 and Other Ways to Float the Quarter.
I should have went there and not party state...
I caught that actually......and amazing degree of arrogance, false or not.
In another post I mentioned that maybe the FED should be spending QE on education instead of Treasuries.
How are you, Kayman?.......hope all is well with you in your neck of the woods.
Bernanke is a shill for the financial elite. He and we are taking the fall, only to save Wall Street bankers’ butts. Talk about a fucked-up system. And we the people cannot do anything about it. Our politicians are for shit.
WTF? Our politicians are the best at what they do; which is take money from the bankster cartel and insure that same cartel gets first priority in legislative support.
What, you expected them to look after your interests? What have you done for them?
"the best money can buy..."
He and the economy are dead when oil reaches $140 again next month.
i agree with Bruce - how can Ben be so confident unless this is simply arrogance? if the latter, I fear the worst. Does the Fed think it can control the trajectory, speed, impact and all subsequent trajectories as if this were a deterministic system? i don't even believe they can control the risk and value of their own Treasury and MBS holdings which makes them worse off than FNM or FRE... or China. Honestly, China's only reassurance is their fate is tied to the Fed's now. How is this situation not identical to what happened to LTCM? these are uncertain times so the confidence confuses me.
I particularly liked his line about being able to raise interest rates in 15 minutes if they wanted to. Yeah, SURE.
All powerful, all confident, finger on the trigger, of course when the fuckers are not asleep at the switch which is most of the time.
It is all soooooo corrupt.
You can bet that the Bernank regrets saying that. He's probably already been scolded by his banker buddies. It was what is called a Freudian slip. I'm not shocked by it, because I understand the arrogance of Wall Street and the banking leaders. I am hoping however that those outside the industry pick up on it....
Remember the gap between could and will. At any time he could come clean and reveal the fraud he is committing, he will not do so. He could raise interest rates, he will not do so.
What we will see will be a true test of propaganda. We will have hyper inflation while at the same time MSM and all gov mouthpieces will tell us of the horrors of deflation, a specter that will eat our should, right around the corner. They will further add that there is no inflation, but hoarders and profiteers trying ot unfairly drive up prices. We'll see how dumb the public is. They tend to get pissy around their wallets so might have to wrap it up with a flag, maybe have Petraues holding a puppy announce that it's all the speculators and terrorists fault.
It must be true. It was on Television.
Any grassy knolls around the places he frequents?
Nobody seems to undertstand that the Bernank is exercising a controlled demolition of the international monetary system. All banksters know that. Top politicians know that too.
What do you expect them to say? OK folks, it's game over, we need new money and you have to suck it in once more? They simply do it for a while stealthly and when it's going to get too hot, then they pull the golden rabbit off their hat!
It just takes a while until they rob the masses completely and they have to keep them under deep sedation. They are not stupid, it's you the idiot if you believe they are not knowing what they do. It's a financial 9/11, whether you believe it or not.
No des we understand fully, That is why we are here and why we are just lining up our ducks as we write to pillage in the aftermath.
ROFLMAO!
The comedy is hitting on all cylinders tonight!
I laughed, I cried, I pissed my pants............
Substitute the cross with the star of David and a Chai on his chain and it will be more representative.
Ha!
OMG WIlliam there aren't enough 1000000000 for that one?
I nearly spewed LOL
I can hear it now
" COME AND TALK TO MY LILL FRIEND>>>>>>>>>>>>>>>>>>>>>
PERFECT, William....one of your best
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/5_Jim_Rickards_-_Fed_May_Go_Bankrupt.html
.
Jim Rickards - Fed May Go Bankrupt
So, here’s the bottom line on money printing, or QE if you prefer. If nothing happens, the whole thing was a waste of time. If inflation takes off, the Fed will have to choose between holding bonds and letting inflation get worse or selling bonds and going bankrupt in the process. Since no entity goes down without a fight, the Fed will naturally hold the bonds and let inflation take off. Do not ask about the exit strategy from QE; there is no exit.