Quantitative Easing Rounds 1 and 2 Hurt the Economy ... Bernanke Proposes Round 3

George Washington's picture

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falak pema's picture

If QE-3 and the money printer come back with a vengeance, then it will seal the doom of the USD. That is if WW3 is not the alternative...

It is interesting to see if US military might can pull the rug under the rest of the world for the years to come... A lesson of history in the making... will Constantinople burn as Rome is destroyed by the barbarians or will it resuscitate as new capital of Justinian...? 

TheMerryPrankster's picture

We should worry that perhaps helicopter Ben will no longer throw money from helicopters, but begin throwing helicopters from helicopters.

TheMerryPrankster's picture

First one must understand what is the nature of Mr. Bernanke's public testimony. All politics which is the art of getting humans to cooperate with each other usually  for the benefit of an unnamed and unseen 3rd party, is about is managing expectations.

The Bernanke is managing expectations. He has been trained by a system which puts little credence in the truth as tenet of explaination. Lieing is preferred as it is much easier to create a mythical world especially in a system that does so little fact checking and in which historical data is ignored or manipulated.

This should allow one to realize that it is not sugar that we are standing waist deep in, but bullshit, steaming putrid government bullshit, the same as we've gotten for 40 years or more.

Bernanke is a magician, his job is to say, "look over here boys" so that nobody notices the houses on fire, the people qued up for food stamps, the endless wars, the deliberate policies dismantling a once thriving economy.

 

His job is to lie and distract, the troubling thing is after doing it for so many years, something is affecting him profoundly causing him to tremble and nearly cry every time he speaks publicly.

Is it what he knows or have they merely changed his medication?

Sambo's picture

In addition to the problem of a leaky structure which Fed/Govt have not addressed, some new joints, pipes & valves have been added to allow the wealth to be diverted to (foreign) banks.

rsnoble's picture

I think I summed it up yesterday when I said the reason for the QE3 announcement was bank charts.  All getting ready to  jump off the cliff.  We can't have that can we.  Of course GS is in the stratosphere and all the others will go splat first.

cranky-old-geezer's picture

GW, along with most other people, fails to see Bernokio's real motive, which is to transfer America's wealth to the banker class.

It's the real reason The Fed was created way back in 1913. 

QE is just a cover story for stealing America's wealth and giving it to bankers. 

If QE becomes politically dangerous, it will be dropped and some other cover story will be created, some other reason for printing currency and giving it to bankers, which is HOW the Fed steals wealth from the American people and gives it to bankers.

QE it a cover story, a distraction, designed to keep people from seeing what's really happening.

If Bernokio can get people's attention on QE, and debating the merits of QE, he can keep people from seeing what he's really doing.

It's working pretty well too.  He has GW fooled like he has most people fooled ...including Ron Paul.

Yes, some QE money is given to the government, because Bernokio has to keep bribing the government to play along. 

Yes, the government is willing to play along as the Fed steals all of America's wealth, as long as they get a piece of the action.  

QE is becoming politically dangerous now.   People are seeing that QE doesn't help the economy, it merely gives money to bankers (and the government) ...exactly what it's supposed to do.

So QE will be dropped for a while, forcing the government to go to the next phase of the grand-theft plan, looting 401k and other pension assets.  

The debt ceiling thing is a false-flag event, designed to pave the way for looting 401k and other pension assets 

...just like 9/11 was a false-flag event designed to pave the way for invading Iraq ...and Afganistan ...and Pakistan ...and Iran ...and anywhere else "terrorists" are alleged to be "hiding".

Mesquite's picture

>1455354

Thank you...

In addition, this game (under different names) is played out all around the planet...

cranky-old-geezer's picture

Quite correct.

For example, the EU, ECB, and common Euro currency were created steal all of Europe's wealth and give it to bankers over there.

They're just about finished looting Greece into poverty, and they're in the final stages of looting Italy, Portugal, etc, into poverty.   Then they'll move on to larger Euro-nations.

It's the very same thing the Fed is doing here in America.

And just like here, they have to pass some of the loot to national governments along the way to keep them playing along.

AnAnonymous's picture

The Euro was created in order to mimick the USD and allows Europeans to live as US citizens, free riding the rest of the world. This could no longer be accomplished on the sole merits of national european currencies. Something more massive had to be created.

rsnoble's picture

Thank god we cashed our 401k's out.  Of course I can't do much about the 20 year pension credit that's already in critical status.  Screw it, take it.  Wake people up.

cranky-old-geezer's picture

..."terrorism" itself being a cover story for the final phase of tuning America into a full-blown police state and maintaining US dollar supremacy in the middle east, i.e. keeping OPEC nations pricing their oil in US dollars. 

You have to look past the cover stories folks, to see what's really happening.

falak pema's picture

Those whom the Gods wish to destroy they first drive mad!...

no2foreclosures's picture

The purpose of QE1/QE2/.../QEx is to swallow the financial vomit of the US that is no longer a sexy thing for the other customer/nations to perform.

working class dog's picture

IMO the way out of the spiral debt bomb is  to get off foreign oil and put the american family to WORK. The US family will save america and no one else.

  Embrace the Boone Pickens Natural Gas Law and put QE2 into subsidies for american jobs, yes :  Natural gas infrastructure to get us off polluting Crude.

   The side effect of doing this would give me great pleasure to see the Koch Brothers get their come uppins, ( getting richer at the expense of americans), this sucks and is one example, of the reason america is out of control with debt. The rich boys want to keep raping and pillaging until all is burned down. Pass the gas bill and put america to work, this will save the economy and nothing else. Pass the gas bill and stop the elite from passing gas.

Ned Zeppelin's picture

This is not hard. As stated above, simply look at this through the lens that realizes that QE does not accomplish the purposes it purports to accomplish.  So, if they do it, it must effectively achieve other goals or objects that have nothing to do with the Fed's phony dual mandate (which you've got to admit is a joke, right?).  QE is not done for John Q. Public.  It is only done to serve the needs of the banks, and the theory on their part is what is good for the banks is good for America, the benefits will all trickle down, the basic theory of why the elites pat themselves on the back and vote themselves a raise every few months. So don't tax the rich, they're your friends and job-creating benefactors. Really, they care about you.   

Really. 

 

Lady Heather...UNCLE's picture

...your representatives last nights PRAISED Bernanke...words fail me. I am a citizen of New Zealand...thank you Lord!

Lady Heather...UNCLE's picture

...all hope is lost. Bernanke is a puppet megnomaniacal. USA is fucked I am sorry to concede. Such a once great country...fuck, the world admired you SO much. But now you are a nation of dunces (present company excluded of course). I have NO pleasure in declaring this...it is SO sad.

Sambo's picture

There is little hope for a country that fights costly & unnecessary wars, spreading more chaos, suffering & poverty in a mad dislocated world.

The military industrial complex, the banks, the corrupt politicians need to be defanged first. Only the American people can do it. But there has to be an awakening of consciousness. It is right now in a drugged state brought about by fear & greed.

The root cause of all human problems is in consciousness. The real crisis is there, not in some silly stock market.

falak pema's picture

As long as the US has the nuclear kill arsenal and the reserve currency for oil/Commodities, they run the show irrespective of the currency mayhem down to foggy bottom. So BB can print away. The world will have to lump it and suck in the devalued USD. Period. Ad infinitum...until someone bells the cat...and kicks US shin in Mid East or in IMF reserve currency, or both...then we will move into WW3 territory...So the options are all moving to black swan country.

AnAnonymous's picture

As long as the US has the nuclear kill arsenal and the reserve currency for oil/Commodities, they run the show irrespective of the currency mayhem down to foggy bottom. So BB can print away. The world will have to lump it and suck in the devalued USD. Period. Ad infinitum...

 

Uh no. The limit is explicit here: as long as there is commodities/oil to give value to the USD.

People can not be robbed from what they  do not have. The US little game is limited by the capacity of non US citizens to be robbed.

As put by this site, it is kicking the can down the road till there is no road left.

Much better to try to  assess the remaining length of the road than expecting US citizens to change their ways. Once a thief, always a thief and the US citizen nature is eternal.

Assessing the remaining length of the road is the first thing I did back in 2008. Rough computations give ample 50 years for the US to keep playing that game.

Nothing sizeable (like an economic collapse) will happen during this period because of the US little game.

falak pema's picture

 

"Uh no. The limit is explicit here: as long as there is commodities/oil to give value to the USD."...

"Assessing the remaining length of the road is the first thing I did back in 2008. Rough computations give ample 50 years for the US to keep playing that game.

Nothing sizeable (like an economic collapse) will happen during this period because of the US little game."

I don't  know if we don't agree. The US wants to kick the can 50 years! That is one helluva time line...to keep piling up the debt at other's expense! 

So they feel they have the exorbitant privilege to do that based on what the "great generation" achieved in the past. THAT IS THE GAME PLAN OF USA. THE WORLD CAN LUMP IT FOR ANOTHER 50 YEARS!

So I think we agree on what basic US strategy is for the coming fifty years...Voilà!

BTW : Unlike you I do not pretend to see up to 50 years ahead...just saying...but I have nothing against someone making 'reasonable' projections...

ebworthen's picture

 

The Bernank is very concerned with making certain the middle class is squashed unceremoniously like a fly on the wall, while he makes the banks solvent using taxpayer money and debauches the currency.

After two rounds of bullshit (QE1 and QE2) the next bowel movement cannot be called what it is or anything resembling QE.

Perhaps it will be assigned a shiny euphamism - Federal Unfunded Collateral Kick - You Orangatan Uruchins! (F.U.C.K. - Y.O.U.).  It would be more honest than QE3 or the bailouts but not quite the same as saying "bend over" to the responsible Amerikan family.

 

AnAnonymous's picture

The Bernank is very concerned with making certain the middle class is squashed unceremoniously like a fly on the wall, while he makes the banks solvent using taxpayer money and debauches the currency.

 

Really? If so, why use QEing? Could use tax payer money instead.

Bernanke is working at preserving the US middle class from its own mistakes.

Mesquite's picture

Bernanke is working at preserving the US middle class from its own mistakes...

 

Just visiting Earth are we..??

AnAnonymous's picture

Sure. How about giving an answer that is addressing the point?

QE is not US tax money but it immediately translates into consumption of real wealth, digging in non US citizens' pockets.

Victimology is high in the US.

fallout11's picture

Err...it also debauches our (Americans) currency via inflation, the stealth tax, thus destroying our savings and purchasing power. We suffer as well. 

fallout11's picture

It was sarcasm gents, surely. 

no2foreclosures's picture

"Bernanke is working at preserving the US middle class from its own mistakes."

You must be fucking joking . . . or schilling for the Bernank.

Instead of "preserving" the better operative word is "pickling".

sitenine's picture

GW, this will get you going - Minute 53:10 into the C-SPAN video of Bernank's congressional testimony earlier in the day:

http://c-span.org/Events/Bernanke-Testifies-on-Semi-Annual-Monetary-Repo...

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: You're mistaken in saying that the Federal Reserve has spent any money. You say $5 trillion. We have lent money. We have purchased securities. That's not buying -- that's not dissipating, you know, the money. We've gotten all the money back.

I have no words to describe how I feel right now...

old naughty's picture

why would you be surprised, still at anything BB says? Could it be that you still have hopes that he still have conscious? Hummmm.

High Plains Drifter's picture

I heard him say that. I could not believe it...........they don't spend money. they are a profit center......yeh sure.......

zorba THE GREEK's picture

 I believe Bernanki said he may try some "untested measures" for QE3.

 Maybe this time he really is going to drop money from a helicopter. 

  That's still got to be better for the economy than just giving it to banks.

Caught Stealing's picture

"Untested measures?" Perhaps take cash and send it directly into the public sector and fund projects directly to increase the employment rate (aka gather more tax-payers to  help pay-off the national debt), rather than hoping the banks to lend it out? Nah...that would mean too much permanent restructuring which doesn't pair-up with the "Transitory" slogan

TJW's picture

"Maybe this time he really is going to drop money from a helicopter."

Nope. I told him that he should give me $5 trillion. As long as I get to keep everything that I buy, I promise to spend it over the next two years entirely on stuff made in the good ol' US of A.

 

Get ready to get back to work everyone. The check is in the mail!

Fukushima Sam's picture

GW, history shows that QE3 is as inevitable as the sun rising in the morning.  You should not be surprised.  Once inflation is set into motion it will always result in destruction of the currency.  Just a matter of timing, and that timing for the dollar seems to be quite close.