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Guest Post: QE2 - The Bernanke Chronicles

Tyler Durden's picture




 

From Jim Quinn of The Burning Platform

QE2 - The Bernanke Chronicles

Our self proclaimed “expert” on the Great Depression, Ben Bernanke,
seems to be feeling the pressure. His theories worked so well when he
modeled them in his posh corner office at Princeton. He could saunter
down the hallway and get his buddy Krugman to confirm his belief that
the Federal Reserve was just too darn restrictive between 1929 and 1932,
resulting in the first Great Depression. I wonder if there will be a
future Federal Reserve Chairman, 80 years from now, studying how the
worst Federal Reserve Chairman in history (not an easy feat) created the
Greatest Depression that finally put an end to the Great American
Military Empire. Bernanke spent half of his speech earlier this
week trying to convince himself and the rest of the world that his
extremist monetary policy of keeping interest rates at 0% for the last
two years, printing money at an astounding rate, and purposely trying to
devalue the US currency, had absolutely nothing to do with the surge in
oil and food prices in the last year. Based on his scribbling since
November of last year, it seems that Ben is trying to win his own Nobel
Prize – for fiction.

His argument was that simple supply and demand has accounted for all
of the price increases that have spread revolution across the world. His
argument centered around growth in emerging markets that have driven
demand for oil and commodities higher, resulting in higher prices. As
usual, a dollop of truth is overwhelmed by the Big Lie. Here is
Bernanke’s outlook for inflation:

“Let me turn to the outlook for inflation. As you all know, over
the past year, prices for many commodities have risen sharply, resulting
in significantly higher consumer prices for gasoline and other energy
products and, to a somewhat lesser extent, for food. Overall inflation
measures reflect these price increases: For example, over the six months
through April, the price index for personal consumption expenditures
has risen at an annual rate of about 3.5%, compared with an average of
less than 1% over the preceding two years. Although the recent increase
in inflation is a concern, the appropriate diagnosis and policy response
depend on whether the rise in inflation is likely to persist. So far at
least, there is not much evidence that inflation is becoming
broad-based or ingrained in our economy; indeed, increases in the price
of a single product–gasoline–account for the bulk of the recent increase
in consumer price inflation. An important implication is that if the
prices of energy and other commodities stabilize in ranges near current
levels, as futures markets and many forecasters predict, the upward
impetus to overall price inflation will wane and the recent increase in
inflation will prove transitory.”

So our Federal Reserve Chairman, with a supposedly Mensa level IQ,
declares that prices have risen due to demand from emerging markets. He
also declares that US economic growth will pick up in the 2nd half of
this year. He then declares that inflation will only prove transitory as
energy and food prices will stop rising. I know I’m not a Princeton
economics professor, but if US demand increases due to a recovering
economy, along with continued high demand in emerging markets, wouldn’t
the demand curve for oil and commodities move to the right, resulting in
even higher prices?

 

Ben Bernanke wants it both ways. He is trapped in a web of his own
making and he will lie, obfuscate, hold press conferences, write
editorials, seek interviews on 60 Minutes, and sacrifice the US dollar
in order to prove that his economic theories are sound. They are not
sound. They are reckless, crazy, and will eventually destroy the US
economic system. You cannot solve a crisis caused by excessive debt by
creating twice as much debt. The man must be judged by his words,
actions and results.

November 4, 2010

With the U.S. economy faltering last summer, Ben Bernanke decided to
launch a desperate attempt to re-inflate the stock market bubble.
The S&P 500 had peaked at 1,217 in April 2010 and had fallen 16% by
July. This was unacceptable to Bernanke’s chief clientele – Wall Street
and the richest 1% in the country. At Jackson Hole in August he gave a
wink and nod to his peeps, letting them know he had their backs. It was
safe to gamble again. He’d ante up the $600 billion needed to revive
Wall Street. It worked wonders. By April 2011, the S&P 500 had risen
to 1,361, a 33% increase. Mission accomplished on a Bush-like scale.

Past Federal Reserve Chairmen have kept silent about their thoughts
and plans. Not Bernanke. He writes editorials, appears regularly on 60
Minutes, and now holds press conferences. Does it seem like he is trying
too hard trying to convince the public that he has not lost control of
the situation? QE2 was officially launched on November 4, 2010 with his
Op-Ed in the Washington Post. He described the situation, what he was
going to do, and what he was going to accomplish. Let’s assess his
success.

“The Federal Reserve’s objectives – its dual mandate, set by
Congress – are to promote a high level of employment and low, stable
inflation. Unfortunately, the job market remains quite weak; the
national unemployment rate is nearly 10 percent, a large number of
people can find only part-time work, and a substantial fraction of the
unemployed have been out of work six months or longer. The heavy costs
of unemployment include intense strains on family finances, more
foreclosures and the loss of job skills.” -
Ben Bernanke – Washington Post Editorial – November 4, 2010

Ben understands his dual mandate of high employment and low
inflation, but he seems to have a little trouble accomplishing it.
Things were so much easier at Princeton. Since August 2010 when Ben let
Wall Street know he was coming to the rescue, the working age population
has gone up by 991,000, while the number of employed Americans has
risen by 401,000, and another 1,422,000 people decided to kick back and
leave the workforce. That is only $1.5 million per job created. This
should get him a spot in the Keynesian Hall of Shame.

The official unemployment rate is rising after Ben has spent $600
billion and stands at 9.1% today. A true measurement of unemployment as
provided by John Williams reveals a true rate of 22%.

Any reasonable assessment of Ben’s success regarding part one of his
dual mandate, would conclude that he has failed miserably. He must have
focused his attention on mandate number two – low inflation. Bernanke
likes to call inflation transitory. Inflationistas like Bernanke will
always call inflation transitory. His latest proclamations reference
year over year inflation of 3.5%. This is disingenuous as the true
measurement should be since he implemented QE2. The official annualized
inflation since December 2010 is 5.3%. The real inflation rate as
calculated exactly as it was in 1980 now exceeds 10%.

  

Mr. Dual Mandate seems to have slipped up. As he stated in his editorial, he wanted to fend off that dreaded deflation:  

“Today, most measures of underlying inflation are running
somewhat below 2 percent, or a bit lower than the rate most Fed
policymakers see as being most consistent with healthy economic growth
in the long run. Although low inflation is generally good, inflation
that is too low can pose risks to the economy – especially when the
economy is struggling. In the most extreme case, very low inflation can
morph into deflation (falling prices and wages), which can contribute to
long periods of economic stagnation.”

He certainly has succeeded in fighting off deflation. Let’s list his anti-deflation accomplishments:

  • Oil prices have risen 35% since September 2010.
  • Unleaded gas has risen 50% since September 2010.
  • Gold has risen 24% since September 2010.
  • Silver has risen 85% since September 2010.
  • Copper has risen 20% since September 2010.
  • Corn has risen 67% since September 2010.
  • Soybeans have risen 40% since September 2010.
  • Coffee has risen by 44% since September 2010.
  • Cotton has risen 88% since September 2010.

Amazing how supply and demand got out of balance at the exact moment
that Bernanke unleashed a tsunami of speculation by giving the all clear
to Wall Street, handing them $20 billion per week for the last seven
months. Another coincidence seemed to strike across the Middle East
where the poor, who spend more than 50% of their meager income on
food, began to revolt as Bernanke’s master plan to enrich Wall Street
destroyed the lives of millions around the globe. Revolutions in
Tunisia, Egypt, Libya, Yemen, Bahrain, and Syria were spurred by
economic distress among the masses. Here in the U.S., Bernanke has only
thrown savers and senior citizens under the bus with his zero interest
rate policy and dollar destruction.

Bernanke’s Virtuous Circle

“This approach eased financial conditions in the past and, so
far, looks to be effective again. Stock prices rose and long-term
interest rates fell when investors began to anticipate the most recent
action. Easier financial conditions will promote economic growth. For
example, lower mortgage rates will make housing more affordable and
allow more homeowners to refinance. Lower corporate bond rates will
encourage investment. And higher stock prices will boost consumer wealth
and help increase confidence, which can also spur spending. Increased
spending will lead to higher incomes and profits that, in a virtuous
circle, will further support economic expansion.”
  Ben Bernanke – Washington Post Editorial – November 4, 2010

Ben Bernanke could not have been any clearer in his true purpose for
QE2. He wanted to create a stock market rally which would convince the
public the economy had recovered. As suckers poured back into the
market, the wealth effect would convince people to spend money they
didn’t have, again. This is considered a virtuous cycle to bankers. He
declared that buying $600 billion of Treasuries would drive down
long-term interest rates and revive the housing market. His unspoken
goal was to drive the value of the dollar lower, thereby enriching the
multinational conglomerates like GE, who had shipped good US jobs
overseas for the last two decades. Bernanke succeeded in driving the
dollar 15% lower since last July. Corporate profits soared and Wall
Street cheered. Here is a picture of Bernanke’s virtuous cycle:

Chart forTiffany & Co. (TIF)

Whenever a talking head in Washington DC spouts off about a new
policy or program, I always try to figure out who benefits in order to
judge their true motives. Since August 2010, the stock price of the high
end retailer Tiffany & Company has gone up 88% as its profits in
the last six months exceeded its annual income from the prior two years.
Over this same time frame, 2.2 million more Americans were forced into
the Food Stamp program, bringing the total to a record 44.6 million
people, or 14.4% of the population. But don’t fret, Wall Street paid out
$21 billion in bonuses to themselves for a job well done. This has done
wonders for real estate values in NYC and the Hamptons. See – a
virtuous cycle.

Do you think Bernanke mingles with Joe Sixpack on the weekends at the
cocktail parties in DC? Considering that 90% of the US population owns
virtually no stocks, Bernanke’s virtuous cycle only applied to his
friends and benefactors on Wall Street.

stock-markets

But surely his promise of lower interest rates and higher home
prices benefitted the masses. The largest asset for the vast majority of
Americans is their home. Let’s examine the success of this part of his
master plan. Ten year Treasury rates bottomed at 2.4% in October 2010,
just prior to the launching of QE2. Rates then rose steadily to 3.7% by
February 2011. I’m not a Princeton professor, but I think rising rates
are not normally good for the housing market. Today, rates sit at 2.9%,
higher than they were prior to the launch of QE2.

One-Year Chart for US Generic Govt 10 Year Yield (USGG10YR:IND)

I’m sure Ben would argue that interest rates rose because the economy
is recovering and the virtuous cycle is lifting all boats (or at least
the yachts on Long Island Sound). Surely, housing must be booming again.
Well, it appears that since Ben fired up his helicopters in November,
national home prices have fallen 5% and are accelerating downward at an
annual rate of 10%. There are 10.9 million home occupiers underwater on
their mortgage, or 22.7% of all homes with a mortgage. There are over 6
million homeowners either delinquent on their mortgage or already in the
foreclosure process. It certainly looks like another Bernanke success
story.

Bernanke’s conclusion at the end of his Op-Ed in November 2010 was
that his critics were wrong and his expertise regarding the Great
Depression trumped rational economic theory. By enriching Wall Street
and creating inflation, his virtuous cycle theory would lead to job
creation and a chicken in every pot.

“Although asset purchases are relatively unfamiliar as a tool of
monetary policy, some concerns about this approach are overstated.
Critics have, for example, worried that it will lead to excessive
increases in the money supply and ultimately to significant increases in
inflation.
But the Federal Reserve has a particular obligation
to help promote increased employment and sustain price stability. Steps
taken this week should help us fulfill that obligation.” Ben Bernanke – Washington Post Editorial – November 4, 2010

Anyone impartially assessing the success of QE2 would have to
conclude that it has been an unmitigated failure and has put the country
on the road to perdition. In three weeks, the Federal Reserve will stop
pumping heroin into the veins of Wall Street. The markets are already
reacting negatively, as the S&P 500 has fallen 6% and interest rates
have begun to fall. As soon as Bernanke takes his foot off the
accelerator, the US economy stalls out because we never cleaned the gunk
(debt) out of the fuel line. Jesse puts it as simply as possible.

“The Banks must be restrained, and the financial system reformed,
with balance restored to the economy, before there can be any sustained
recovery.” – http://jessescrossroadscafe.blogspot.com/

Bernanke and his Wall Street masters want to obscure the truth so
they don’t have to accept the consequences of their actions. The economy
and the markets will decline over the summer. Bernanke is a one trick
pony. His solution will be QE3, but it will be marketed as something
different. He will appear on 60 Minutes and write another Op-Ed. Ben
Bernanke will go down in history as the Federal Reserve Chairman that
brought about the Greatest Depression and hammered the final nails into
the coffin of the Great American Empire.

 

 

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Thu, 06/09/2011 - 10:32 | 1354305 GeneMarchbanks
GeneMarchbanks's picture

Tyler is it possible for the Fed to raise capital reqs to force banks to issue more shares and then use the money to buy treasuries? A sort of stealth QE by way of the banks or is this complete nonsense?

Thu, 06/09/2011 - 10:49 | 1354390 zaknick
zaknick's picture

How about those Iranians, eh? They provide the fulcrum for other OPEC nations to rebel against the KKK/Banksters Empire (which seems to be coming apart at the seams ...tee hee hee) AND announce the tripling of HEU capacity at the same time! Yeehaaa! Bring it on bankster zombies!

Guess who's backing them up? Just half of humanity! There is hope after all!

http://consortiumnews.com/2011/06/07/asian-alliance-supplants-us-empire/

Oh say can you see, the mushroom cloud over thee!!!

Thu, 06/09/2011 - 13:42 | 1355000 TruthInSunshine
TruthInSunshine's picture

The amazingly accurate predictions and forecasting of the genius that is the Bernank (/sarc):


  Bernanke Video Compilation: Bloopers
Thu, 06/09/2011 - 10:59 | 1354413 snowball777
snowball777's picture

Not nonsense at all. Many have proposed that a defined portion of their cap requirements be in convertible debt which becomes the shares you describe if necessary. It would sell at a discount to traditional senior debt, but be available for looting if the ship is about to cap-size. Maybe this is why they wanted to be posting laughable dividends of late.

Thu, 06/09/2011 - 11:07 | 1354447 GeneMarchbanks
GeneMarchbanks's picture

Thanks snow. But this surely would be a last ditch attempt. Suppose that more shares are issued, who are the poor bastards who are going to buy these shares? Sheer the sheeple is surely coming to an end although I'm known for being wrong on these socio-economic predictions.

Thu, 06/09/2011 - 11:22 | 1354506 Quixotic_Not
Quixotic_Not's picture

Suppose that more shares are issued, who are the poor bastards who are going to buy these shares?

What are they gonna buy, Bitcoin shares?  LOL

Oh BTW Conrad Murray, told ya so!

http://www.zerohedge.com/article/things-make-you-go-hmmm-it-safe#comment...

ST. LOUIS (Thomson Reuters Accelus) - Two senators are pressing federal authorities to crack down on an online black market and "untraceable" digital currency known as Bitcoins after reports that they are used to buy illegal drugs anonymously....

http://finance.yahoo.com/news/Senators-seek-crackdown-on-rb-4251307580.h...

Thu, 06/09/2011 - 11:58 | 1354640 GeneMarchbanks
GeneMarchbanks's picture

Dude... first let me say thanks for the reply. Second, I will not get into an extended discussion about bitcoin with you. Here is a quote from the second article you posted:

"U.S. law enforcers might have difficulty stopping Bitcoins without help from their peers in other countries."

It seems you are in the US of A. The fact that your congress is trying to stop this is telling. Here is all I have to say: You don't have to buy into bitcoin if you don't want to. BTW there are no shares, as I'm sure you are aware.

Thu, 06/09/2011 - 12:03 | 1354658 GeneMarchbanks
GeneMarchbanks's picture

thx I assumed as much, just exploring the possibility.

Thu, 06/09/2011 - 12:17 | 1354698 Quixotic_Not
Quixotic_Not's picture

Trust me, I'd love nothing better than an alternative currency scheme to escape the fiat usury tyranny of the banksters and politeers, but that's not an option in the real world - You pay your protection money to the thugs or face the violent consequences thereof!

I am under no illusions as to my place in this world, thanks to the huddled mongrels that have destroyed the former Democractic Republic of the USA, and make my decisions for survival accordingly...

In a free society, not everyone is equal; Ergo, in a society where everyone is equal, no one will be free.

Thu, 06/09/2011 - 12:22 | 1354749 GeneMarchbanks
GeneMarchbanks's picture

I like Funkadelic-Parliament, do you? Free your mind and your ass will follow. All I'm saying is keep your options open, whether it's palladium coins, bitcoins or semi-precious stones. Makes no difference. As to illusions, I suggest you get some; I've heard life is impossiblie without'em.

Thu, 06/09/2011 - 12:35 | 1354776 Quixotic_Not
Quixotic_Not's picture

¿Tienes plata gringo?

Thu, 06/09/2011 - 12:45 | 1354809 GeneMarchbanks
GeneMarchbanks's picture

Si.  

Thu, 06/09/2011 - 11:23 | 1354505 Carl Spackler
Carl Spackler's picture

GeneMarch banks,

U.S. banks will not raise equity capital and use it solely to buy treasury securities, as that will create an additional negative carry and compress their net interest margins further.

Equity is more expensive that debt capital, and the returns on treasuries are slim and none, right now.

 

Thu, 06/09/2011 - 12:08 | 1354677 Hearst
Hearst's picture

The below is a repost but I read it last night and thought how true it rings even today.

 


"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes.  Distinctions in society will always exist under every just government.  Equality of talents, of education, or of wealth can not be produced by human institutions.  In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law, but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuties, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society - the farmer, mechanics, and laborers who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government.  There are no necessary evils in government.  Its evils exist only in its abuses.  If it would confine itself to equal protections, and, as Heaven does its rains, shower its favors alike on the high and low, the rich and the poor, it would be an unqualified blessing.  In the act before me there seems to be a wide and unnecessary departure from these just principles"

 

President Andrew Jackson defending his convictions in congress to kill the Second Bank Of The United States even though the congress and supreme court had ruled it constitutional. 

Thu, 06/09/2011 - 11:35 | 1354544 Withdrawn Sanction
Withdrawn Sanction's picture

Tyler is it possible for the Fed to raise capital reqs to force banks to issue more shares and then use the money to buy treasuries?

That's a really interesting point.  Here's a slightly different twist on a related idea:

If I remember right, under Basel Stds, sovereign debt, like US Treasuries, carries no capital penalty; in essence, it's like carrying cash on the asset side of the balance sheet.  If banks were required to hold more capital-to-assets, one way to meet that standard would be for the banks recompose their balance sheets such that they hold more Treasuries.  In so doing, they raise their capital-to-assets level dollar for dollar for each dollar of Treasuries purchased (holding liabilities constant of course).

This process would also create additional demand for Treasuries during the readjustment period.  It also has the potential to (temporarily) stop the almost-immediate disposal of POMO purchases from the primary dealers (temporarily, that is, until the capital levels  rise to the higher prescribed levels, and then after that, the POMO game starts anew).

Wow, that'd be pretty sneaky even if it is only a short-lived bump to US Treasuries.

Thu, 06/09/2011 - 12:19 | 1354693 GeneMarchbanks
GeneMarchbanks's picture

Thanks WS,

I figure they have to get creative. I see no chance of any "Ooops! you caught us!" situation. It's really hard to take your eyes off of an upcoming catastrophe.

Thu, 06/09/2011 - 12:13 | 1354700 boiltherich
boiltherich's picture

Basel Stds

 

Is this what you get when your bank fucks you in the ass?

Thu, 06/09/2011 - 12:45 | 1354803 Quixotic_Not
Quixotic_Not's picture

Actually, no that's what the banksters get when they have buttsex.

We get Change you can bleed in...

Thu, 06/09/2011 - 11:58 | 1354637 TimmyM
TimmyM's picture

GeneMarchbank-

"force banks to buy Treasuries?"

This has been done before to finance the civil war with the national bank act of 1864.

http://www.enotes.com/major-acts-congress/national-bank-act

Thu, 06/09/2011 - 12:14 | 1354714 GeneMarchbanks
GeneMarchbanks's picture

Sweet historical reference! Good to know... It seems they are in it to win it! ... ...

Thu, 06/09/2011 - 10:33 | 1354312 TopOnePercent
TopOnePercent's picture

Makes one wonder who is telling Bernanke what to say and when.

 

There is no way that this is all Bernanke.

 

There are names and faces that decide on currency valuations.

 

Would it not be interesting to know what names and what faces.

Thu, 06/09/2011 - 11:37 | 1354552 WonderDawg
WonderDawg's picture

Look no further:

http://www.save-a-patriot.org/files/view/whofed.html

There's your answer, the org chart for the owners of the Fed. They own the Fed, they own Bernanke.

Thu, 06/09/2011 - 12:04 | 1354665 trav7777
trav7777's picture

I dunno, but the action in Platinum and Palladium lately seems to smell something.  POG would appear to be confirming.

Thu, 06/09/2011 - 10:35 | 1354321 kumquatsunite
kumquatsunite's picture

Why why why? Did Bernanke give loans to those without jobs or income or any ability to pay? To every Jose who could cross the border via the map provided by a coyote? Did Bernanke juice the economy with unheralded, social glue destroying, ecologically devastating, importation of third world peoples who have no contribution to make to the United States except to make our country Look like a third world country?

Bernanke is just trying to replace some of the money that was juicing the economy from the housing industry and its associated ills; this is not his fault. This is the fault of the namby pamby, two bit, no account socialist/communists who think that giving away the United States as  a ponzi scheme of "economic growth" actually works. Some believe this country's heritage of English, white majority (10% traditionally non-white: our beloved Black Americans) has been deliberately destructed so that the world can descend, descend into chaos, red in tooth and claw, a vicious world reflective of the third world where each only thinks of themselves and all is done only for today. 

Good luck with that, and wish your kids good luck. They will desperately need it.

Thu, 06/09/2011 - 10:35 | 1354334 SheepDog-One
SheepDog-One's picture

It did work as planned....3rd worlding of US about complete. Welcome to the new world order.

Thu, 06/09/2011 - 10:53 | 1354392 Baron Robber
Baron Robber's picture

people like kumquat will make his job easy (NWO)

Thu, 06/09/2011 - 11:48 | 1354608 karzai_luver
karzai_luver's picture

Yep, One would think that the idiots would ....nah.

 

5 will get you 10 that old kummy is a church going kind. Pure christian!

 

Thu, 06/09/2011 - 12:57 | 1354639 Quixotic_Not
Quixotic_Not's picture

I think it's the boogeyman in the closet that no one wants to think about.

http://www.freedomsite.net/93-549.htm

When I was part of a patriot group in the 90s, I spoke to thousands of "Americans" about Emergency Powers, and became aware of the cultural phobia then...

People just can NOT admit that the Constitution has been supplanted by UCC and UCMJ, even when presented with incontrovertible evidence - They'd rather live on pastures of ignorant bliss.

God bless 'MeriKa and a chicken in every pot!

Then you've got the socialist/fascist apparatchiks that are so dumbed-down to succumb that they dissemble when confronted and support traitors at their own expense!

Truth is treason in an empire of lies...

Thu, 06/09/2011 - 11:16 | 1354489 DoChenRollingBearing
DoChenRollingBearing's picture

And so what do we DO about it?  Since we as a people likely are sheeple, and many of us don't want to take to the streets, there seems to be just one answer:

Buy physical gold.

Thu, 06/09/2011 - 11:31 | 1354535 SheepDog-One
SheepDog-One's picture

Buy physical gold, buy physical firearms and ammo too.

Thu, 06/09/2011 - 12:16 | 1354710 Silver Dreamer
Silver Dreamer's picture

Although I agree that we are experiencing planned looting, there are millions of liberty lovers in this country who will resist the forced transition to a third world fascist nation.

Thu, 06/09/2011 - 10:38 | 1354343 augie
augie's picture

"namby pamby."

absolutely god damn right. 

Thu, 06/09/2011 - 10:56 | 1354415 ugly_avatar_Muir
ugly_avatar_Muir's picture

"Did Bernanke give loans to those without jobs or income or any ability to pay? To every Jose who could cross the border via the map provided by a coyote?"

__

My friend.

I've traveled the US extensively.

Many, many "gringos" did very well because of the illegals that they were hiring.

It is absolutly amazing to me how many owners of construction companies would lament US policy on Mexicans while hiring so many that more than 70% of their labor force was Mexican.

You want to know who let this happen?

Here's a clue: look around your State and see who hired them.

I'm much more older and cynical than you are or may ever be.

At $10,000 fine per illegal the immigration problem is solved in a week (first came into law in late 80s if memory serves) it was the WASPs who made sure that this law never took hold.

Simple.

Thu, 06/09/2011 - 11:25 | 1354521 Quixotic_Not
Quixotic_Not's picture

Yep, more cheap labor to grease the skids of the (D) & (R) Free Shit Empire™.

Amazing how totally self-deceived the avg. 'MeriKan is...

Thu, 06/09/2011 - 11:01 | 1354434 baby_BLYTHE
baby_BLYTHE's picture

He is a lying treasonous thieving bastard

Handing out free money 88% foreign banks!? While Americans are thrown into the street out of their homes.

Yet congress reconfirms him and gives the Federal Reserve even more power.

Sick

Thu, 06/09/2011 - 11:18 | 1354480 downwiththebanks
downwiththebanks's picture

Re: #1354321

Go back to Europe, White Man.  You're living on stolen land.

And you're doing so pretty ignorantly.

How in the world can you type while giving a hand job to Vikram Pandit?

Thu, 06/09/2011 - 11:23 | 1354504 DoChenRollingBearing
DoChenRollingBearing's picture

Many parts of Europe will be majority Muslim by 2050.

So, no thanks!

The best way to get off of Vikram is to instead use those hands to turn fiat into physical gold.  Two problems solved.  You don't have to stroke filthy banksters and you get some financial security.  It's magic!

Thu, 06/09/2011 - 11:51 | 1354623 karzai_luver
karzai_luver's picture

Peak OIL

Population bomb

 

Mushroom clouds

 

end of times

 

cats and dogs living together

 

 

I would be very suspect of who makes these predictions as they are

at times more than a little off.

 

 

Thu, 06/09/2011 - 10:35 | 1354324 carbonmutant
carbonmutant's picture

 This is like shooting fish in a barrel...

None of these guys saw the problem coming and none of them know how to solve the problem. All Bernanke and the banks have done is circle the wagons to protect themselves from the inevitable...

Thu, 06/09/2011 - 11:05 | 1354450 Shocker
Shocker's picture

There is no way Q3+ isn't coming. The only thing we know how to do is print money. We will keep throwing money at the problems until, the numbers are so big we all will need new calculators. There are several ways to help fix this economy, but nothing what we are doing now

http://www.dailyjobcuts.com

Things really need to change, thats all i can say

Thu, 06/09/2011 - 11:28 | 1354513 downwiththebanks
downwiththebanks's picture

All you need to do is call it something other than QE3, and White Capital's propaganda machine will get revved up.  

I just can see it now.  Imagine the fat bastard Mark Haines reading the TelePrompTer:

"The Bernank insists that the new program, called 'TWO WORDS,' has little in common or to do with the now obsolete QE2.  'It's not even named QE3,' the Bernank indignantly announced when questioned about the program's nature."

Thu, 06/09/2011 - 12:03 | 1354676 trav7777
trav7777's picture

White capital, LOL....tell me again who the dominant ethnicity on the Fed board is

Thu, 06/09/2011 - 10:36 | 1354325 SheepDog-One
SheepDog-One's picture

This is BS, no one can try to tell me Bernank was selected and put there to FIX anything. He was put there to ensure the Greatest Depression would be so complete that there would be no way out of it. New world order is the agenda, people.

Thu, 06/09/2011 - 11:03 | 1354438 B9K9
B9K9's picture

I disagree; I think Bernancke is a true believer, which is why he was selected for the position. The real players, who are descendants of those who first created the BoE, then the Fed, and many over CBs, know the true score.

After all, from their earliest ages, they are schooled in the simple mathematics of usury & compound interest. Their heritage is one of ultimate predation - to lie in wait until thriving societies (republics) reach the point of exhaustion so that their corrupting influences can have greatest effect.

But that observation is repetitive and well known by any who wish to understand. My interest lies in why people want to believe Bernancke can have any effect. I think the best way to explain this phenomena is to consider the witch doctor: why did/do primitive cultures revere witch doctors?

I think the simple explanation is that people are afraid. In days of yore, a crop failure was a death sentence for the entire country. Since people had nothing to lose, why not put their faith in the rantings of some hocus-pocus spewing mumbo-jumbo? After all, if he was wrong, they were dead anyway.

That's where we're at today - what do we have to lose by letting Ben dick around with monetary policy? After all, once the Fed was created nearly 100 years ago, the American Empire was put on death watch. I mean, it was fait accompli; the only variable was time.

Like a python, once a society relinquishes itself to the soft embrace of the chosen, it's a goner. The tribe never lets go until the victim is dead, then moves on to search for other living, thriving victims. It's been this way for 5-6 thousand years, and I dare say it will continue for at least that long into the future.

After all, how many people read/know of the Founders' warnings regarding foreign banking interests consipriing against the young Republic? 200+ years from now, no one will care to understand what happened when the American Empire finally expired. It will be lost in the annals of time, allowing the vipers to once again spin their webs.

Thu, 06/09/2011 - 11:27 | 1354519 DoChenRollingBearing
DoChenRollingBearing's picture

*CRACK!*

The sound you just heard was B9K9 hitting another grand slam out of the park.

 

EDIT: You should write a blog.

Thu, 06/09/2011 - 11:35 | 1354547 SheepDog-One
SheepDog-One's picture

I dont buy B9K9's thesis, it sounds nice and all but hinges on the idea Bernank is just an innocent genius true believer, just having his strings pulled from above but unknowingly. I stand by my original simple statement that Helicopter Bernank has always known what he was doing, transfering the wealth of america to the central banks and planned 3rd worlding of the US.

Thu, 06/09/2011 - 11:57 | 1354634 Withdrawn Sanction
Withdrawn Sanction's picture

 

I think this is essentially debating about how many angels can dance on the head of pin.  Does it really matter if BB is a brilliant dupe, or scheming douche?  The outcome will be the same regardless.  The debt pyramid (not to mention the derivatives pyramid resting on top of it) cannot grow the sky.  The bad debts (like cancer) must be removed from the system, or else the system dies.  Unfortunately, excising the bad debts crashes a big chunk of derivates bets in a non-linear (disproportionate) fashion.  Morever, the socialization of private losses, has transmitted the bad debt infection to the sovereign.  The disease in short is metastasizing.   

This dangerous relationship is also why QE/rev 3.0 is largely an irrelevancy (almost like it was meant to be a distraction or something, but I digress).  The QE advocates are talking billions, while the bad debt and related derivatives problem is measured in the trillions.   Good luck with that, BB.

 

Thu, 06/09/2011 - 12:07 | 1354688 Caviar Emptor
Caviar Emptor's picture

With ya on that, Dog

Thu, 06/09/2011 - 12:25 | 1354753 Quixotic_Not
Quixotic_Not's picture

I stand by my original simple statement that Helicopter Bernank has always known what he was doing, transfering the wealth of america to the central banks and planned 3rd worlding of the US.

Hasn't that been standard practice for the politeers in the District of Criminals since Woodrow Wilson?

To tell you the truth, the 'MeriKan sheeple have it coming, as they can hardly be qualified to be a 1st World Nation based on their utter and complete incompetence as an electorate...

Thu, 06/09/2011 - 11:30 | 1354545 augie
augie's picture

This brings up a question i have been wrestling with for sometime: If what you suggest is true, (and believe me, i am sympathetic to your thoughts) then why even bother trying to make a difference? I think we as human beings instictively use that "human nature" excuse to abdicate the responsibility of actively evolving. Nature conserves energy when and where it can, and if i'm comfortable in my homiostasus, why in the wide world of sports would i go mucking about jepordizing what i have for what i dont even know is possible?

Thu, 06/09/2011 - 12:25 | 1354744 serotonindumptruck
serotonindumptruck's picture

A healthy survival instinct makes up a large percentage of the "human nature" that you speak of. Perhaps that instinct can be attributed to the fear of possible social consequences for speaking out and creating opposition within their respective communities. In modern societies, the fear of being socially (and professionally) marginalized or ostracized for speaking out with unpopular opinions can be overwhelming, even if this fear manifests itself on a conditioned, subconscious level. Call that cognitive dissonance, apathy, opportunism, whatever, it doesn't really matter. What does matter are the very real detrimental aspects and consequences that an intentionally flawed economic policy has upon the overall society.

These are willful, intentional crimes against humanity IMO. The perpetrators of these crimes deserve to be punished in the harshest possible manner. I am confident that justice will prevail.

Thu, 06/09/2011 - 12:15 | 1354695 trav7777
trav7777's picture

With total monopolistic control of finance and media, what hope is there?  An outbreak of Russia-esque nationalism?  Nobody spent 70 years blaming them for all the ills of an entire race.

When you listen to black nationalists tell the real story of the slave trade and juxtapose that with the race hustling machine in the USA, you begin to see who really has the guilty conscience.  The affect manifests akin to how a narcissist deals with guilt- by lashing out.

Thu, 06/09/2011 - 10:36 | 1354333 Number 156
Number 156's picture

I know I’m not a Princeton economics professor...

Considering the stellar examples of what comes out of Princeton, You should be glad.

Thu, 06/09/2011 - 10:39 | 1354335 somethingelse
somethingelse's picture

The problem with Mensa-level high-IQ Bernanke (and often many really bright academicians) is the tendency to overestimate the ignornance of their audience.

this will be his downfall eventually in my opinion.

Thu, 06/09/2011 - 10:44 | 1354358 Number 156
Number 156's picture

He's just a book smart academic, no real world street smarts whatsoever.

Remember, Wisdom is the practical application of knowledge. The Bernank fails miserably.

Thu, 06/09/2011 - 10:55 | 1354412 Hedgetard55
Hedgetard55's picture

+55

 

Book smart, not street smart. No common sense. Typical academic.

Thu, 06/09/2011 - 10:44 | 1354371 trav7777
trav7777's picture

Downing Effect indicates the opposite.  Smart people typically UNDERestimate their audience's ignorance.

The real problem is that the real economy is being driven by extrinsic factors into contraction.

The "solution" in the growth age was always to grow debt.  That isn't working now because aggregate contraction is upon us.

The more debt the government piles on to stimulate, the LESS they get back in taxes now (however the coverse is not implied).  This is because witholdings from gov jobs are not real tax revenue.

They merely expend a supply of air in order to inflate a tire that is deflating.  We've all been kids and had a leaky ball that we tried to blow up.  In vain.

The "solution" since the total collapse caused by the oil supply problem has been to just borrow money to keep people employed and wait/hope/pray for an organic economic turnaround.  One is not coming.

Everything is going to default....everything.  All debt.  Historians will write about this era as "when growth ended." 

Thu, 06/09/2011 - 12:29 | 1354755 Absinthe Minded
Absinthe Minded's picture

I had a hand truck tire that I couldn't get to inflate. What a prick, until I brought it to work and hit it with unlimited CFM at 130 PSI...Hey maybe Krugmans right...

Thu, 06/09/2011 - 10:39 | 1354338 LawsofPhysics
LawsofPhysics's picture

The bernanke is just a puppet.  Of course this is all about power and control.  Nothing to see here, move along.

Thu, 06/09/2011 - 10:41 | 1354341 AladdinSaneGirl
AladdinSaneGirl's picture

To objectify the situation, look at what's happening internationally today: Christine Lagarde ontrack to be next head of IMF and backing a greater role for China, Japan and emerging markets. How long can the dollar remain as the world's no.1 currency? A year? This seems to be the Q.

Thu, 06/09/2011 - 10:41 | 1354342 jse111
jse111's picture

TD says, "So our Federal Reserve Chairman, with a supposedly Mensa level IQ, declares that prices have risen due to demand from emerging markets."

So what, a Mensa level I.Q. begins at a “relatively” pedestrian 140 level and almost all full professor, department chairman's intellect far exceeds this quotient.  We are not addressing individuals that "drive truck" for their existence. 

Additionally, Groucho Marks reportedly had an I.Q. approaching 180.  Groucho demonstrated his superb upper cortical function by occasionally putting his cigar down! 

  

Thu, 06/09/2011 - 10:40 | 1354355 augie
augie's picture

From Jim Quinn of The Burning Platform

Thu, 06/09/2011 - 11:37 | 1354380 Bastiat
Bastiat's picture

What good is a high IQ if you have no sense, if you are trapped by an ever more elaborated but incorrect model of the world reinforced by sycophantic students and co-dependent colleagues?

Thu, 06/09/2011 - 12:33 | 1354770 Absinthe Minded
Absinthe Minded's picture

Exactly. A product of his environment. Parents,"We're so proud of little Benny. Letting him play Monopoly with real money really paid off."

Thu, 06/09/2011 - 11:10 | 1354472 Dapper Dan
Dapper Dan's picture

Arnold Schwarzenegger
IQ Score 135
The same as Bill Clinton.

Thu, 06/09/2011 - 10:40 | 1354357 I am a Man I am...
I am a Man I am Forty's picture

our shit central bank shouldn't have anything to do with employment, this just gives them a free pass to keep interest rates low and to continue screwing savers out of money

the bernanks only job is to enrich banks and corporations without pitchforks entering the federal reserve building, he's been very successful

Thu, 06/09/2011 - 10:41 | 1354360 socalbeach
socalbeach's picture

You cannot solve a crisis caused by excessive debt by creating twice as much debt.

Bernanke is not creating debt, he's creating base money to buy Treasuries.  Then when the Treasury pays the Fed interest, it later gets sent back to the Treasury, less Fed expenses.  If I give you some money that never has to be paid back, and that you don't have to pay interest on, should it be considered a debt to you?  I would call it a gift.

 

Thu, 06/09/2011 - 10:52 | 1354388 baby_BLYTHE
baby_BLYTHE's picture

So the debt is then destroyed? Since money/credit= debt, how is the FED not in fact monetizing?

what you describe above is a ponzi. The FED has no capital, only a printing press.

Even if the "money" never had to be paid back, surley the market would not let this go on forever and eventually interest rates would rise sharply. After all the FED is already buying over 70%

Thu, 06/09/2011 - 10:53 | 1354406 SheepDog-One
SheepDog-One's picture

Well no doubt somethings got to give, likely quite violently. 

Thu, 06/09/2011 - 13:23 | 1354938 Silver Dreamer
Silver Dreamer's picture

Exactly.  Prepare for the day your money buys nothing and your life is worth nothing to others.

Thu, 06/09/2011 - 10:45 | 1354373 Stuck on Zero
Stuck on Zero's picture

Bernanke will be judged by history as the man who stole a national treasury for his bankster buddies.

Thu, 06/09/2011 - 10:55 | 1354400 lynnybee
lynnybee's picture

BANKSTERS !   biggest scam, fraud, heist, mafia criminal syndicate ever !    never in my life have i seen such horridness......... books will be written about this time in history; society will be totally changed with the broken paper promises yet to come.      Revolution is the only answer, walk away from the system & let it fall.

Thu, 06/09/2011 - 11:05 | 1354451 luk427
luk427's picture

Bernanke is a front line puppet. The real culprits are holding the strings.   http://www.silverbearcafe.com/private/rothschild.html

Thu, 06/09/2011 - 11:42 | 1354593 DoChenRollingBearing
DoChenRollingBearing's picture

That was an interesting link, thanks for sharing.

Thu, 06/09/2011 - 10:50 | 1354376 ugly_avatar_Muir
ugly_avatar_Muir's picture

"Bernanke and his Wall Street masters want to obscure the truth so they don’t have to accept the consequences of their actions. The economy and the markets will decline over the summer. Bernanke is a one trick pony. His solution will be QE3, but it will be marketed as something different."

__

See?

It's right here!

Open your eyes.

Deflation = Hyperinflation

Why, you ask.

Because all deflationary effects merely result in Mr. Bernake being forced to devalue the dollar to infinity and beyond.

Ergo, buy silver.

QED.

__

<applause not needed>

_

Thu, 06/09/2011 - 10:52 | 1354403 bankonzhongguo
bankonzhongguo's picture

Is Bernake at Bilderberg?

What other alpha-sharks have disappeared from public view and are now discussing the future in St Moritz?

And again, why isn't this being reported in the NYT, CNBC or USA Today?

 

 

Thu, 06/09/2011 - 11:34 | 1354554 cramers_tears
cramers_tears's picture

If "The Bernank" isn't there physically, you know he's getting the Webex Bilderberg feed piped directly into his =758" Home Entertainment System.

I hear they're going to sit Zuckerberg in a chair in the middle of the room and grill him about how Facebook can promote the NWO, before they send him back to a roomfull of heroin, cocaine and hookers.

Weiner's Wiener has been scratched from the guest list.

Thu, 06/09/2011 - 14:13 | 1355015 TruthInSunshine
TruthInSunshine's picture

The Bernank summons Moloch, through a goat or emu sacrifice, whenever he wants to teleport to Bilderberg using the space-time continuum wormhole.

Thu, 06/09/2011 - 10:56 | 1354404 VegasBob
VegasBob's picture

The Bernank is a goddamn liar.  He should be tried, convicted and executed for fraud, grand theft, counterfeiting and treason.

Thu, 06/09/2011 - 10:56 | 1354407 wombats
wombats's picture

Just like always, there are plenty of very intelligent people in Washington and on Wall Street.  What is lacking, though, is WISDOM!

Thu, 06/09/2011 - 11:01 | 1354443 jkruffin
jkruffin's picture

Explain how USD never gains on the Yen?  I mean Japan could fall off in the ocean and the dollar would not make 1 pip gain in the yen, but when the market is going down, and the dollar should gain against yen, it drops.   WTF is wrong with this picture? Something is so far out of whack in Forex I hate to see what disaster it creates.  Forex doesn't trade with any reality anymore just like stocks....

Thu, 06/09/2011 - 11:31 | 1354534 Carl Spackler
Carl Spackler's picture

Outstanding left jab to Bernanke's face, Tyler !

I especially liked the most basic of economic explanation exhibits, the simple supply vs. demand graph explanation SLAMMED right back into Bernanke's face. 

This is Economics 101 !

 

Thu, 06/09/2011 - 11:41 | 1354541 swissinv
swissinv's picture

Sure I'll get junked a 1000 times for this unpopular statement:

"To be fair, Bernanke had no other choice to implement QE2 because otherwise the US would have already defaulted"

And since the US simply can't default without shaking the whole financial industry and derivative market you should be not suprised to see a big surprise.

Thu, 06/09/2011 - 11:39 | 1354580 Carl Spackler
Carl Spackler's picture

I'll be the first to junk the fuzzy foreigner, because he doesn't understand the U.S. governmental structure.

Bernanke had a lot of other choices...like not conjure up and implement QE2.

A U.S. default is a fiscal matter, not a monetary policy matter.  Bernanke is independent of the Executive Branch of U.S. government (Barack "I am not a crook" Obama and his minion, Little Timmy "I don't have to pay my federal taxes" Geithner), which manages the budget, AND independent of the Congress which sets the budget.

Thu, 06/09/2011 - 11:53 | 1354606 swissinv
swissinv's picture

I wonder how all the treasury auctions would have ended without bidding FED and what the interest rate would be...

Thu, 06/09/2011 - 12:01 | 1354663 Withdrawn Sanction
Withdrawn Sanction's picture

I wonder how all the treasury auctions would have ended without bidding FED

Badly, of course.  But that will happen anyway, only now it will be far worse because the scope of the problem is now larger.

Thu, 06/09/2011 - 11:32 | 1354542 dcb
dcb's picture

he will die a very rich man for helping out all the rich people.

Thu, 06/09/2011 - 11:42 | 1354577 Tabarnaque
Tabarnaque's picture

We should never forget that the Fed is privately owned. It is not a government institution. It does not exist for the good of this nation. Its primary objective is to maximize the profits and wealth of its shareholders. Keeping inflation tame and maximizing employment are only a secondary mandate that acts as a smoke screen. If the Money Masters who truly owns the Fed do not see any benefit in extending the US debt through QE3, they will not hesitate to push the economy into a double dip recession. In the end, they are the ones that will benefit the most from such recession. History shows that they have not hesitated to do so several times before. In fact, they have done much worse than that.

 

By the way there is a great video called “The Money Masters” that explains the history behind the current world depression, the creation of the Federal Reserve in the hands of a few private investors and the bankers’ goal of world economic control by a very small coterie of private bankers, above all governments. A “must watch series” of truly informative videos.

 

http://www.youtube.com/watch?v=lXb-LrVkuwM

 

Thu, 06/09/2011 - 11:45 | 1354604 Carl Spackler
Carl Spackler's picture

Not completely true.

The Federal Reserve Banks are owned by their member banks in a co-operative manner. They see a small dividened, if any, but their costs of regulatory compliance outweigh any dividend they ever receive.

Any profits made by the Federal Reserve Banks and the system actually end up in the hands of the United States Treasury...most of which comes from interest earned on U.S. Treasury securities.

The FOMC, which makes monetary policy, is controlled by the Board of Governors of the Federal Reserve, which is appointed by POTUS and confirmed by the Senate.

 

 

Thu, 06/09/2011 - 11:56 | 1354646 luk427
luk427's picture

Carl, The United States sold its soul to the federal reserve in 1913. The Federal Reserve is privately owned and only looks out for its best intrest. You should do some more reading.  http://beforeitsnews.com/story/408/276/The_Illuminatis_Secret_20_Trillion_Dollar_Bank.html

Thu, 06/09/2011 - 12:01 | 1354666 Tabarnaque
Tabarnaque's picture

Why should the power of printing money be in the hands of private banks instead of being with the Treasury? The government should have the power of issuing money, not a private bank. Who ever controls the printing of money, controls just about everything. The creation of the Federal Reserve in 1913 was the single biggest mistake ever made in the history of the United States.

Btw, Bangsters are so powerful that no President would dare to name someone who does not come from the banking sector. 

 

Thu, 06/09/2011 - 12:11 | 1354690 luk427
luk427's picture

John F. Kennedy was the last president who tried to bypass the federal reserve and print money for the United States backed by silver. A few months later he had a nice hole in his head.     http://www.john-f-kennedy.net/thefederalreserve.htm

Thu, 06/09/2011 - 12:20 | 1354739 Tabarnaque
Tabarnaque's picture

Strangely enough, Abraham Lincoln and James Garfield were also assassinated. Both opposed to having a private central bank with the power of issuing money...

Thu, 06/09/2011 - 12:49 | 1354839 Quixotic_Not
Quixotic_Not's picture

Lincoln is the archetype of the District of Criminals model...

The Civil War was the beginning of the end of the vision of the Founding Fathers and the Age of Reason...unfortunately most Americans applaud the end result of Lincoln's War, not knowing that as a result they have been deprived of their birthright, which has been translated from sovereign citizenship to a paid membership in a benign, velvet-gloved tyranny...

Ever wonder how the Federal Government became the largest employer in the USA?

Thu, 06/09/2011 - 13:23 | 1354942 akak
akak's picture

This current urban myth about Kennedy "taking on the Fed" is nothing but exactly that --- a myth.  Look into the matter objectively, and you will find that he in fact did nothing of the sort; his signing of the executive order to print more silver certificates was nothing but a rote formality of the time, as the issuance of silver certificates by the Treasury had been an ongoing endeavor for almost the entire previous century.  Kennedy IN NO WAY deviated from the monetary policies of his predecessors, and it galls me to keep repeatedly reading misinformed commentators suggesting that that statist bastard actually had an iota of decency or monetary common sense.  I assure you, he did not.

Thu, 06/09/2011 - 14:18 | 1355151 swissinv
swissinv's picture

I hope this is not the fate of Hugo Salinas

Thu, 06/09/2011 - 12:21 | 1354725 trav7777
trav7777's picture

No.  The Fed is a quasi government agency whose goal now is to directly help private corporations run by the cousins of the Fed Board.

It's all setup to look like a utility but it is wielded to enrich relatives of the FRB members.

The original central bank, the BOE was exactly as you describe.  However, after the great war, it was considered propitious to "nationalize" these institutions.

This did not affect to whom the benefits of their existence accrued.  It really matters not if the Fed is a .gov or a private corporation when its function is the same and the outcome of its actions are the same.

The money powers sucked germany to starvation following WW1, and even during the hyperinflation, the cousins ended up owning the majority of the nations.  Even after years of ethnic restrictions on ownership, the percentage was cut to maybe 33%.  The major media...owned.  Major banks...owned.  Major corporations...owned.

Thu, 06/09/2011 - 11:48 | 1354613 learner0
learner0's picture

people... you are barking up the wrong tree. "The Bernank" IS intlelgent. If you think strategically, he cant publicly admit the real reason for the fed's actions without starting something no one wants. You have all seen the posts over the last 6 months, join the dots. Oh and while I am arrogantly telling you what to do may I also suggest that every time another horror story on Greece is posted you are helping the Europeans to stay in the fight.

Thu, 06/09/2011 - 11:52 | 1354616 Caviar Emptor
Caviar Emptor's picture

 Ben must be celebrating two key and unprecedented developments since QE2:

-April 18th, 2011: S&P puts US debt on negative credit watch (followed by the other 2 US ratings agencies)

-June 9th, 2011: German rating agency Feri Downgrades US public debt from AAA to AA. First downgrade ever by a Western rating agency (already done by China's Dagong Rating Agency July, 2010)

These are outstanding accomplishments that should be mentioned at the awards ceremony!! He did what no other chairman could do!!

Thu, 06/09/2011 - 12:37 | 1354784 William Wics
William Wics's picture

This is all much easier to understand if you realize that he is not stupid and things are not going wrong. They are going exactly as planned, it's just not a plan that's good for us sheeple.

At some point we have to realize that these goons (the politicians and their cronies) represent themselves in the struggle to create a fudal world where we are the surfs.

We are screwed.

 

Thu, 06/09/2011 - 12:41 | 1354806 Arkadaba
Thu, 06/09/2011 - 13:06 | 1354889 TruthInSunshine
TruthInSunshine's picture

In 1971, we went off the Gold Standard regarding our money.

In 1971, Pusherman, by the late, great Curtis Mayfield, was recorded (it was released in 1972, though).

Coincidence? I think not.

An even brief consideration of the lyrics describes the fiscal and social policy of the U.S. Government, and the monetary policy of the very private Federal Reserve Bank before, and especially after, we went off the Gold Standard.

Pusherman
Thu, 06/09/2011 - 13:18 | 1354929 DavidC
DavidC's picture

"Bernanke and his Wall Street masters want to obscure the truth so they don’t have to accept the consequences of their actions".

I can't think of many truer words that have been spoken. They are like children who have been caught stealing and will lie, shift blame and do ANYTHING to avoid accepting responsibility for their actions.

But let's not forget Alan 'Prove Me Wrong' Greenspan, Hank 'The TARP money will be used to buy toxic assets and not bail out the banks' Paulson, Tmothy 'Chinese students, the US is committed to a strong dollar' and all those others whom we love (to hate).

DavidC

Thu, 06/09/2011 - 14:01 | 1355087 trendybull459
trendybull459's picture

I think its senseless to talk on FED,you,me and everyone knows it destroying us,just stop wining,change the FED!If you can not-then except Heavens power of punishment of your country,change country and you will see everywhere same process

Thu, 06/09/2011 - 21:07 | 1356578 Caught Stealing
Caught Stealing's picture

I agree that its time to stop focusing on the problem, and start finding a solution. The pressing question is whether or not its too late to do anything about this...

Thu, 06/09/2011 - 14:06 | 1355093 trendybull459
trendybull459's picture

you have no power intervine into the system,nor a few individuals,unless you print own version of money accepted by world,then you have War

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