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Dear Senate: Please Ask Bernanke To Explain This

Tyler Durden's picture




 

Each time the Fed's balance sheet is expanded, gas prices at the pump surge... strange coincidence or entirely to be expected consequence of flooding the world with newly printed money. Dear Senate, please ask Bernanke to explain this... on Humphrey-Hawkins Report days, gas prices have only been higher once - right before the entire financial market collapsed.

Correlation does not imply causation... except when all the correlations are caused by the Fed:

 

 

 

 

 

Charts: Bloomberg

 

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Tue, 02/26/2013 - 10:43 | 3277364 vmromk
vmromk's picture

Throw MOTHERFUCKING Bernanke in prison already and end the pain.

END the CRIMINAL CARTEL everyone endearingly calls the "fed".

MOTHERFUCKING CRIMINALS.

Tue, 02/26/2013 - 10:47 | 3277392 mayhem_korner
mayhem_korner's picture

 

 

Wouldn't make a difference.  The "next guy up" would do the same thing as Uncle Ben.

Tue, 02/26/2013 - 10:51 | 3277411 I think I need ...
I think I need to buy a gun's picture

only softballs today

Tue, 02/26/2013 - 10:53 | 3277421 TruthInSunshine
TruthInSunshine's picture

The reason there is correlation is because Quantitative Easing boosts real economic consumption and production, which is why the FOMC Beige Book continues to show a rapidly recover economy ("V Shaped"), with strong employment, wage, housing and industrial utilization growth, as well as loan demand and growth in retail and industrial sales, etc., accompanying this robust recovery.

And that's why the Fed has undertaken QE/POMO pumps, in addition to the original Hank "Bald Headed Fuck" Paulson/Timmay "Keebler Elf" Geithner 'blank check' from CONgress for TARP/TALF/Unlimited FASB Interpretation, on a monthly basis for nearly 4 years now, with steadily growing real interest rates accompanying such robust growth, that is caused by the highly successful Quantitative Easing "Virtuous Circle" monetary-straying-into--fiscal-policy-&-definitely-monetizing-the-debt.

So you see, oil/energy/gasoline prices aren't being juiced as a result of a dilution of fiat that is the consequence of Bernank's Quantitative Easing.

It just appears that way on the surface.

But I'd better let Ben 'Virtuous Circle Monetary Policy' Bernanke explain it to the illustrious, competent & deeply ethical Senate Panel of MEMBERS that questions him on this subject matter, should they wish to.

Thank you.

Tue, 02/26/2013 - 11:11 | 3277519 Badabing
Badabing's picture

The price for a gallon of gas is down, as  long as you use a new ice cream container to measure it.

Tue, 02/26/2013 - 11:35 | 3277631 Freewheelin Franklin
Freewheelin Franklin's picture

Or a new soda bottle. I noticed the size of a bottle of soda went from the 16.9 oz/.5 liter to 16 oz/pint. There's also a new 20oz size But that's like $2.

Tue, 02/26/2013 - 11:00 | 3277431 notbot
notbot's picture

Here is another great chart showing the change in Gas Prices vs. the S&P:

When gas prices move this fast, the S&P rolls over.  

 

 

Tue, 02/26/2013 - 11:01 | 3277464 Dr. Engali
Dr. Engali's picture

 The only time any real questions were ever asked was by Ron Paul.

Tue, 02/26/2013 - 11:25 | 3277584 pods
pods's picture

Even RP fumbled around when it came to Ben.  He probably values his life.  He was more interested in showing another system during these sideshows.

It ain't that difficult, I mean, the information is everywhere.

"Mr. Bernanke, can you please tell us pompous asses on this side of the sideshow where, exactly, the FED came up with the 16 Trillion in loans that saved the banks who own the FED in and around 2008?"

"Do you see it as a conflict of interest that you may create as much "reserves" to rescue the exact banks that own you?"

"What is the effect on every single holder of FRN's when you monetize the debt?"

"Exactly how much value has the FRN lost since inception, and how do you reconcile this with the mandate of the FED to maintain stable prices?"

It is not tough.  It is orchestrated to give us the illusion that we the people have a say in what happens to the value of everything we own as we are forced to do business in Caesar's money.

pods

Tue, 02/26/2013 - 12:46 | 3278029 DaveyJones
DaveyJones's picture

don't see any plays or ride in open limos

Tue, 02/26/2013 - 14:23 | 3278384 localsavage
localsavage's picture

Suicided    Translation:   The situation when a person who goes against the "chosen people" is declared to have committed suicide even in the face of massive evidence to the contrary.  Reference:  See.... Bernie Madoff's son

Wed, 02/27/2013 - 00:17 | 3280733 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

no such thing in Madoff's son, troll, try again

Tue, 02/26/2013 - 11:25 | 3277586 Shizzmoney
Shizzmoney's picture

Alan Grayson is pretty great at grilling the Fed officials and their bullshit as well.  "Is anyone minding the store at the Federal Reserve?"

http://www.youtube.com/watch?v=cJqM2tFOxLQ

I'll miss Dr. Paul on days like these.  He was the only guy on the committee who ever challenged these guys with actual substance.

Tue, 02/26/2013 - 10:48 | 3277396 beaker
beaker's picture

Why is 2010 omitted?

Tue, 02/26/2013 - 10:54 | 3277426 MFLTucson
MFLTucson's picture

Put glasses on jack

Tue, 02/26/2013 - 10:55 | 3277430 W74
W74's picture

Nooses are better than prisons.  Kikes will always work to parden their fellow kikes assuming they don't win in court, or manage to skip trial altogether.

Tue, 02/26/2013 - 11:16 | 3277539 xtop23
xtop23's picture

Bernanke channeling Billy Joel.

"They heard the hum of our motors..."

"They counted our rotors...."

"And waited for us to arrive...."

"And we will all go down together... they said we'd all go down together..." 

The spice must flow Ben. Quit being a pussy. 200 billion frankenbucks a month, baby.

 

Tue, 02/26/2013 - 12:35 | 3277959 Pooper Popper
Pooper Popper's picture

Cheaper than dirt has hanguns in stock Today!!! GIggity!

Tue, 02/26/2013 - 10:41 | 3277365 Terminus C
Terminus C's picture

Luckily, no one uses gas, ergo not inflationary.

btfd

Tue, 02/26/2013 - 10:49 | 3277403 Spastica Rex
Spastica Rex's picture

Just substitute a subsidized Tesla for gasoline.

All the cool kids are.

Tue, 02/26/2013 - 12:50 | 3278042 DaveyJones
DaveyJones's picture

kinda that catch 22 these idiots have placed themselves

and all of us

inflate out of unsustainable debt

and make an already essential and depleting resource

that much more unreachable

war (I mean more war) is next

and like QE, it wont work

Tue, 02/26/2013 - 10:41 | 3277366 Cdad
Cdad's picture

What is the under on anyone in Congress asking Ben Bernanke even a pertinent question during his testimony? 

Tue, 02/26/2013 - 10:44 | 3277378 mayhem_korner
mayhem_korner's picture

 

 

The over is 0.  Not sure what that means for the under.

Tue, 02/26/2013 - 10:47 | 3277390 smlbizman
smlbizman's picture

before i answer....is ron paul coming back as guest host?

Tue, 02/26/2013 - 10:48 | 3277397 pods
pods's picture

It is not polite to try and talk with something in their mouth.

pods

Tue, 02/26/2013 - 10:42 | 3277369 Hippocratic Oaf
Hippocratic Oaf's picture

Helicoptor Ben only goes up.

Tue, 02/26/2013 - 10:53 | 3277423 W74
W74's picture

Except the air is getting pretty thin these days.

Tue, 02/26/2013 - 12:54 | 3278057 DaveyJones
DaveyJones's picture

That's not the air, it's his reasoning

Tue, 02/26/2013 - 10:42 | 3277370 Dr. Richard Head
Dr. Richard Head's picture

It's those damned Muslims and Obama not allowing is to drill here. /sarc

I now understand the media pushing the Muslims as the cause of gas prices. It's an emotional trigger for all, while hiding the money printer's agenda and conundrum of fiat fuckery.

Tue, 02/26/2013 - 10:45 | 3277384 GMadScientist
GMadScientist's picture

Damn, just when I thought it was those eeevil speculators.

Tue, 02/26/2013 - 10:53 | 3277419 Dr. Richard Head
Dr. Richard Head's picture

That narrative is for those who serfs who believe the left represents their interests.  The Muslim narrative is for those serfs on the right that believe the right represents their interests.  Divide and conquer and all of that jazz. 

Tue, 02/26/2013 - 12:57 | 3278068 DaveyJones
DaveyJones's picture

And the muslim speculators are for the independents

Tue, 02/26/2013 - 10:52 | 3277416 smlbizman
smlbizman's picture

doc,

being 55 , always signing fronts of checks.....i have very little optimisum about anything. with that being said....i think more people are getting it.......and we can thank al gore for creating the tool that, as it eats all our info , it is also feeding the masses more truth than ever before...

Tue, 02/26/2013 - 11:02 | 3277474 mayhem_korner
mayhem_korner's picture

 

 

All people have to do to "get it" is "look for it."  Protracted unemployment, 10-oz. "pounds" of coffee, $2.89 loaves of bread that used to be $1.49, $4/gallon gas, 5%+ annual increases in property and real estate taxes, etc., etc. has gotten more people to "look for it".

Many folks are discounting the "sequester" as another bumpy embarassment to the abortion we call Washington, D.C.  I think it will have a major, major impact because it will motivate a new chunk of people to "look for it."  The return to 6.2% payroll taxes has made a number of folks "look for it," and I think the "sequester" will multiply that.

The equation is already set, the end known.  The only thing holding back the dam is that the number of people "looking for it" is insufficient as yet to tip the jenga tower.  It has been an awareness question rather than a fiscal/economic question for many years now.

My rant is done.

Tue, 02/26/2013 - 10:52 | 3277417 Panafrican Funk...
Panafrican Funktron Robot's picture

Indeed,

1.  The Muslims = gas price increases

2.  The Europeans = stock market downturns

3.  The Black Single Mother = any domestic financial or cultural decay issue

Tue, 02/26/2013 - 11:28 | 3277611 Shizzmoney
Shizzmoney's picture

Remember the U.S. Government's crutch: "When in doubt, blame brown people."

Tue, 02/26/2013 - 10:42 | 3277371 francis_sawyer
francis_sawyer's picture

Things you'll never hear:

~~~

"Gasoline prices look like they've reached a permanently high plateau..."

Tue, 02/26/2013 - 10:46 | 3277387 espirit
espirit's picture

No inflation, just like Orly's chicken breasts.

Tue, 02/26/2013 - 11:04 | 3277479 mayhem_korner
mayhem_korner's picture

 

 

Breast inflation is still booming.

Tue, 02/26/2013 - 11:13 | 3277528 espirit
espirit's picture

See that you caught the inference.

Tue, 02/26/2013 - 11:36 | 3277648 Jani
Jani's picture

Yeah, still want to know where Orly shops --

Bacon by me is 6.99 lb -- not $4

Chicken breasts are $2.99 -- not .99

Lettuce is $1.99 -- not .99

and gas today is $4.05 -- not $3.60

and more importantly, ice cream is $5.99 for the 48 ounce half gallon container.

Tue, 02/26/2013 - 12:32 | 3277824 akak
akak's picture

Apparently, Orly has the use of AnAnonymous' magical time-traveling flying rickshaw, and still does all her shopping back in the mid-2000s.  Too bad the rest of us have to shop in 2013.

I was thinking of Orly's credibility-stretching (credibility-breaking) claims of "no food price inflation" earlier this morning, and here are some of MY observations comparing prices from the 2006-2007 timeframe to those of today (all items purchased from Fred Meyer or Costco, with one noted exception):

 

Skim milk, gallon: $2.49 then, $3.89 today

95% lean ground beef, /lb: $2.19 then, $2.89 today (this one from local butcher)

Sugar, 5 lb bag: $2.19 then, $3.69 today

Bulk yellow onions, per lb: $0.89 then, $1.19 today

Celery, per lb: $0.99 then, $1.29 today

#10 can of crushed tomato puree (Costco): $1.99 then, $3.09 today

56 oz. jar of sauerkraut (Costco): $1.99 then, $2.99 today

32 oz. Nancy's Yogurt, plain: $2.29 then, $3.29 today

2 2 liter bottles Extra Virgin Olive Oil (Costco): $21.98 then, $28.49 today

Romano Cheese (Costco), per lb: $5.29 then, $7.29 today

40 oz. bad dried mangos (Costco): $7.99 then, $10.89 today

6-pack Orowheat bagels: $1.89 then, $3.59 today

Almond butter, freshly ground, per lb: $4.79 then, $6.59 today

Whole pork loin, per lb: $1.79 then, $2.49 today

Whole chicken, per lb: $0.79 then, $1.29 today

Ground lamb, one lb: $4.99 then, $6.99 today

64 oz. can Apricot Nectar: $1.79 then, $2.49 today

 

And these are not cherry-picked numbers, but representative of the price rises I have seen over the last six years.

So Orly, you can take your "no inflation" lies and shove them up your ass.

 

Tue, 02/26/2013 - 13:01 | 3278072 mvsjcl
mvsjcl's picture

Akak, you need to cut down on those bad mangos.

Tue, 02/26/2013 - 15:44 | 3278715 akak
akak's picture

LOL!

I read over my post twice, and STILL missed that one!

Yes, it was supposed to be "40 oz. bag".

Tue, 02/26/2013 - 15:56 | 3278786 Miffed Microbio...
Miffed Microbiologist's picture

Silly me, I googled " bad mango" figuring it would give me a variety close to what you meant. I didnt think you were talking about a rock group.

Miffed;-)

Tue, 02/26/2013 - 13:13 | 3278111 Jani
Jani's picture

Thanks for that Akak -

I know there have been some wild swings price wise in home heating oil, but since QE1 started in late 08, prices have been marching upward and right now hovers around $4 per gallon.

For those seniors and others on a fixed income, shelling out 1000 bucks for a tankful every month in the winter has got to hurt like a knife in the back.

I've prepped with a wood-burner, but many seniors haven't and are sitting around in sweaters, blankets and going to the public library to spend their days.

Tue, 02/26/2013 - 13:53 | 3278284 akak
akak's picture

Jani, I have always been curious, WHY do people in the Northeast still heat with that messy, stinky and archaic heating oil, when the rest of the country (even almost everyone in my home state of Alaska) has moved to natural gas decades ago?  Surely there is and has been enough population density to have long ago justified the conversion.  I mean, my God, do you still light your homes with whale oil too?

Tue, 02/26/2013 - 14:46 | 3278470 francis_sawyer
francis_sawyer's picture

@akak ~ not trying to challenge you here ~ just adding a little comparison shopping

~~~

Skim milk, gallon: $2.49 then, $3.89 today ~ $2.69, ALDI, but have 2 huge dairy farms adjacent, so...

95% lean ground beef, /lb: $2.19 then, $2.89 today (this one from local butcher) ~ Irrelevant 4 me ~ have 2 steer who frolick occasionally w/ the local ldies, but local COSTCO is $2.39

Sugar, 5 lb bag: $2.19 then, $3.69 today ~ can't remember the last time I bought sugar ~ Have 150 lbs sealed in mylar

Bulk yellow onions, per lb: $0.89 then, $1.19 today ~ FREE ~ Grow my own

Celery, per lb: $0.99 then, $1.29 today ~ FREE, grow my own

#10 can of crushed tomato puree (Costco): $1.99 then, $3.09 today ~ FREE, grow my own & preserve

56 oz. jar of sauerkraut (Costco): $1.99 then, $2.99 today ~ Cabbage, Vinegar & pickling spices... FREE ~ grow my own

32 oz. Nancy's Yogurt, plain: $2.29 then, $3.29 today ~ can make it from scratch [see milk above]... cept for the cultures

2 2 liter bottles Extra Virgin Olive Oil (Costco): $21.98 then, $28.49 today ~ Olive oil totally depends on what you buy... Hald the OO in the US is a mix of Canola oil... Buyer Beware [unless u don't give a ff]

Romano Cheese (Costco), per lb: $5.29 then, $7.29 today ~ [see yogurt]

40 oz. bad dried mangos (Costco): $7.99 then, $10.89 today ~ WTFF?

6-pack Orowheat bagels: $1.89 then, $3.59 today ~ see wheat prices... make from scratch

Almond butter, freshly ground, per lb: $4.79 then, $6.59 today ~ Don't live in Cali or Australia... I'm fine w/peanut

Whole pork loin, per lb: $1.79 then, $2.49 today ~ $1.99 [tenderloin], but I will say that they have about an 'eith more inch' fat rind on them ~ but you can render that if u want...

Whole chicken, per lb: $0.79 then, $1.29 today ~ build a coop and you can buy a chick for a buck... They're funny animals too...

Ground lamb, one lb: $4.99 then, $6.99 today ~ $6.99 as well

64 oz. can Apricot Nectar: $1.79 then, $2.49 today ~ say wha?

Tue, 02/26/2013 - 15:49 | 3278748 Miffed Microbio...
Miffed Microbiologist's picture

Good comparison Francis. You are fortunate to be in a place to raise beef. My cantankerous 83 yr old mother in law still raises 4-10 steers a year Spokane. When she sees what we pay in beef she always flips out. "Why I can raise a beef easily for $4.00/lb" is what he hear all the time. What she doesn't care to admit is she has 80 acres of pasture and only feeds hay 3 months a year. Being on a well in an arid part of San Diego means no pasture. Hay around here goes for $15-25 per 120# bale so we ain't gonna see $4.00/lb beef. Cheapest chicken scratch at Walmart was 6.00/ 40lb bag about 10 years ago. It's now $14. I buy organic scratch for my birds and it's $22. Organic lay pellets are $30/ 40lb sack which lasts me a week. Though we have a great advantage having a growing season that is all year, raising protein cost effectively is quite a challenge.

Miffed:-)

Wed, 02/27/2013 - 11:11 | 3281652 Jani
Jani's picture

Yeah, there are still many older neighborhoods on Long Island, primarily the ones build during the early boom years of the 50s that don't have access to NG. Tearing up the roads to install piping to service the 80 homes is not cost efficient for the providers.

So NG is not an option, we are stuck with another "barberic relic" --

I like the other relic better.

Tue, 02/26/2013 - 15:08 | 3278554 Miffed Microbio...
Miffed Microbiologist's picture

Akak, your numbers look about right. We're about 10-20% higher in each category but since San Diego is one of the costliest places to live in the USA it makes sense. We do shop more now at our local farmers market which actually is cheaper than the local supermarket and since I know each of the farmers personally I trust the food more. Also, I've taken up bartering some of our eggs and produce with our neighbors veggies. Still, with all our cost saving measures, we do feel the dramatic cost of food inflation. I want to believe Orly is not lying. I mean, would one really post those numbers just to be an asshole troll? Please, Orly link a picture of these food items and their prices next to a newspaper. I want to believe you but the numbers you site do not occur here, even one time coupon deals.

Miffed:-)

Tue, 02/26/2013 - 15:58 | 3278769 akak
akak's picture

Miffed, I agree with you in every particular, including taking extra measures to hold down costs that may have not been taken in the past --- I do that myself, including bartering for locally raised eggs, chickens, goat milk and a few other items that I can obtain locally (sadly, Alaska is not known for its agriculture, although I do live right next door to the Matanuska Valley and its renowned summer produce, which is available from a handful of farmers' markets, but only for a very limited season).

However, discussing these extra cost-saving measures was not and is not my point, as they amount to little more than the 'hedonic adjustments' that the BLS dishonestly uses in their fraudulent and laughably lowballed CPI statistics to discount real-world price increases.  I was trying to highlight the fact that food prices ARE and HAVE been rising over the last five or six years, and significantly, whether these individual spot prices are higher or lower than those observed concurrently in other regions of the country.  Orly has tried to argue that this or that food is "cheap" for her today, and therefore food prices are not rising --- yes, but how much LESS 'cheap' were they five or six years ago?

Honestly, when have food prices (or prices overall) ever fallen?  Not in any of our lifetimes, that is for sure!

Tue, 02/26/2013 - 16:18 | 3278894 Miffed Microbio...
Miffed Microbiologist's picture

Absolutely. Spot prices in food have risen in all categories in my experience. One may argue they haven't increased in equal percentages. We have noted protein has gone up dramatically vs carbs, probably due the fact it requires more energy to produce. I guess that's why the bernank view people will shift from ribeye to hamburger ( or iPad?) that will somehow even all this out. I can see how this may work in a very short time period but it doesn't work now. Our wages are no where near keeping up with inflation ( my husband has not had a raise in ten years) and now hamburger is the cost per lb as ribeye was 5 years ago today. Mr miffed and I know we are slowly sinking in quicksand. The extra cost saving measures are a pathetic attempt on our part to contain the bleeding. Besides, we get great joy handing our friend some cash and flying a bit under the radar. We are no economists but we are smart enough to know the CPI is a farcical joke. Anyone thinking otherwise is a deluded idiot. Sorry Orly.

Miffed;-)

Tue, 02/26/2013 - 10:46 | 3277388 Winston Churchill
Winston Churchill's picture

Just wait until June.

Gulf closed and new summits to climb.

Tue, 02/26/2013 - 10:43 | 3277373 espirit
espirit's picture

What are they gonna do?  Roll over and whisper in his ear?

Tue, 02/26/2013 - 10:43 | 3277375 stocktivity
stocktivity's picture

CNBC has their "ALL-TIME" Dow High Rally caps and pom-poms ready. They have their count-down going. It's all Bullshit!!

Tue, 02/26/2013 - 10:48 | 3277393 gamera9
gamera9's picture

Udner the category of "Believe and you shall see"

Tue, 02/26/2013 - 11:05 | 3277480 francis_sawyer
francis_sawyer's picture

To CNBC:

~~~

- The DJIA had a low [in Dec 2008] of 8148 & a high of 8934... Making a median of 8541

- The DJIA, now, is 13845

- The median price of gasoline in Dec 2008 [nationwide] was $1.65

- The EIA 'projects' the median price of gasoline for the rest of 2013 to be $3.57

Sincerely,

BLOW ME you cocksucking sychophant morons

Tue, 02/26/2013 - 10:48 | 3277394 gamera9
gamera9's picture

Udner the category of "Believe and you shall see"

Tue, 02/26/2013 - 12:01 | 3277739 slightlyskeptical
slightlyskeptical's picture

We passed all the old highs a while ago if you include dividends (total return indices). I don't see how anyone can report on it without including this piece of info.  But to a man, the media, seeking alpha, ZH, etc. have made no mention of this fact. is everyone just an idiot or dishonest or both?

The date was April 2, 2012 when the S&P 500 passed it's 2007 highs on a total return basis.

Tue, 02/26/2013 - 10:44 | 3277376 Jacque Itch
Jacque Itch's picture

From a General on an old MASH episode:

"This is a press conference!  The last thing I want to do is answer a bunch of questions!!!!!"

and...

"I would like to add that I have nothing to add"

Tue, 02/26/2013 - 10:44 | 3277377 q99x2
q99x2's picture

Write your congressperson. Ask them to sponsor laws against financial terrorism.

Tue, 02/26/2013 - 10:51 | 3277410 pods
pods's picture

Yep, and there will certainly be a provision in said law that speaks about those who hold physical, barbarous relics.

I would write my congresscritter and ask them to suck on a gun barrel if it didn't get me 3 hots and a cot in Gitmo.

pods

Tue, 02/26/2013 - 10:58 | 3277450 Dr. Engali
Dr. Engali's picture

Why would they do that? I fairly certain that the congressperson would have to be amongst the first to be arrested of said law.

Tue, 02/26/2013 - 10:44 | 3277380 crgTMT56
crgTMT56's picture

"let's not fix the problem, or really even pay attention to that graph.... let's focus on job creating windmill energy and how clean it all feels"- give you one guess

Tue, 02/26/2013 - 12:50 | 3278041 TBT or not TBT
TBT or not TBT's picture

Fascism and green go together don't you know.

Tue, 02/26/2013 - 10:45 | 3277381 Rainman
Rainman's picture

It's just a coincidence that food and fuel are declared volatile and thus disregarded in the inflation index farce. Let the muppets keep scratching their heads....no conspiracy to be seen here.

Tue, 02/26/2013 - 10:45 | 3277382 Oldwood
Oldwood's picture

Whats to explain? The plan is working perfectly.

Tue, 02/26/2013 - 10:45 | 3277383 Jack of All Trades
Jack of All Trades's picture

It's OK - thanks to the wealth effect created by the Bernank, people don't feel the higher gas prices.

Tue, 02/26/2013 - 10:46 | 3277385 bnbdnb
bnbdnb's picture

Ben,

How does buying MBS and Treasuries help the average american? Do you have any real world examples to back that up? If you stop buying, does that mean stocks will go down?

Tue, 02/26/2013 - 10:50 | 3277404 Toolshed
Toolshed's picture

What on earth gave you the idea Ben was trying to help average Americans? Get real dude. He is working for, in every respect, the banks. They do employ him, literally, after all. The Fed is a bank, owned by banks, and run by bankers. What else would you expect?

Tue, 02/26/2013 - 10:51 | 3277409 bnbdnb
bnbdnb's picture

I personally don't think so. I think the committee should ask him those questions.

Tue, 02/26/2013 - 10:57 | 3277436 smlbizman
smlbizman's picture

i will tell you one way, at least for a little while.....my wifes girlfriend is in mort. refis.....i was just told last night ,she offered a 2% no cost refi....than follwed with , either state farm or allstate is offering "price" matching mort..... 

 

edit...everything i own is paid for, so i dont follow this much anymore

Tue, 02/26/2013 - 11:03 | 3277475 bnbdnb
bnbdnb's picture

Good answer.

Tue, 02/26/2013 - 10:48 | 3277395 eclectic syncretist
eclectic syncretist's picture

Ben Bernanke is a fucking lunatic who is going to ruin our country with his limitless FRNs.  Where is Thomas Jefferson when we need him most?

Tue, 02/26/2013 - 11:07 | 3277500 mayhem_korner
mayhem_korner's picture

 

 

Ben is not going to ruin our country.  There is no need to put a future tense on that.  The ruin is secure, the timing is all that's left to ponder.

(I would vote for Franklin or Madison over Jefferson, BTW, but those guys are rolling over in their graves that exactly what they warned about has come to be...)

Tue, 02/26/2013 - 14:23 | 3278405 Bam_Man
Bam_Man's picture

Correct. This country is already completely ruined. Just a question of when the sheeple start to realize that fact.

Tue, 02/26/2013 - 15:16 | 3278594 Totentänzerlied
Totentänzerlied's picture

"Warning"

No, declaration of intent.

Tue, 02/26/2013 - 10:49 | 3277399 Dr. Engali
Dr. Engali's picture

Quick show some flag burning Muslims to blame it on.

Tue, 02/26/2013 - 10:53 | 3277420 Spastica Rex
Spastica Rex's picture

That shit makes me scared just thinking about it. I don't even have to see it anymore.

Tue, 02/26/2013 - 11:09 | 3277511 pods
pods's picture

Praise the Lord, pass the duct tape. God wants us to cower in our plastic room.

pods

Tue, 02/26/2013 - 12:57 | 3278069 TBT or not TBT
TBT or not TBT's picture

It makes me cry for tolerance and understanding, personally. As opposed to the intolerance that goes with psychotic religious obscurantism emanated from a child raping illiterate hallucinating warlord of the sands of dark ages Arabia.

Tue, 02/26/2013 - 10:49 | 3277400 Winston Churchill
Winston Churchill's picture

Kommisar Bernake will pretend to answer, and they will pretend to ask.

Forward USSA.

Tue, 02/26/2013 - 10:50 | 3277407 DonutBoy
DonutBoy's picture

Give it a rest with the big arrows.  All that says is the graph doesn't show what I want it to show so I'm going to clutter it up to make my case.

Tue, 02/26/2013 - 10:50 | 3277408 eclectic syncretist
eclectic syncretist's picture

Whatever happened to Alan Grayson?  Did the banksters manage to get rid of him?  He used to grill Bernanke real good!

http://www.youtube.com/watch?v=n0NYBTkE1yQ

 

Tue, 02/26/2013 - 12:08 | 3277826 marathonman
marathonman's picture

I think his grilling was probably akin to Elizabeth Warren grilling Federal financial enforcement officials.  All for show.  When she was in enforcement she didn't do anything either but she can serve up tough questions to look serious.  It's all a farce.

Tue, 02/26/2013 - 10:52 | 3277412 khakuda
khakuda's picture

Ben has yet to figure any of this out.  Ultra loose money raises bond, stock, real estate and commodity prices (energy most importantly).  It's fun and games at first, but eventually, asset prices get to unsustainable levels and crash in the case of bonds, real estate and stocks, slowing the economy.  Energy cost increases hurt from day one and slow the economy.

But, we all know these guys don't live in the real world so they don't get it.

Tue, 02/26/2013 - 10:52 | 3277413 W74
W74's picture

When are people going to understand that only labor and production produce real wealth?  In the early 1900's a factory could hire men by the dozens and by the hundreds at a time and ASSUME that they'd take to their jobs quickly and work their butts off (it helped that there was no welfare system and these men had to put food on the table) because that's how our society was.  I also didn't matter if you had a decade of experience or were a kid just starting out.  No one cared if you had a job yesterday or if you hadn't worked in a year.

Nowadays any manager has to thoroughly scrutinize all applicants.  The hiring managers now ASSUME that anyone who puts in an application is lazy, will not adapt quickly, might steal, and might cause disruption to the workplace.  Managers now want many years of experience and no gaps in employment.  WHAT CHANGED?  Our culture of coure.   In the 1900s if you didn't work you were fired on the spot and there was no bureaucratic hassle, no lawsuits, no problems.  You could get another job tomorrow, but you'd still have to make the change.  Now if you're hired and you fall into a "protected class" you can instantly slack off on the job and be well assured that you're untouchable.  You can even show up late twice a week and there'd be no issue, but take a kid like your's truly (who hasn't been late to work in 12 years) and I'd be writen up for my first "violation" or possibly escorted out the door right then and there.

Tue, 02/26/2013 - 11:10 | 3277515 Oldwood
Oldwood's picture

That was before we "Progressed". Old thinking suggested that work and its production created wealth. The modern world now understands that wealth can only come from the printing press and its amplification through the financial services industry where enlightened gamblers can advance the world for all of us. Anyone who believes that "work" is required to create wealth is simply looking for an excuse to enslave people. Real freedom is a tit in every puckered lip and a display screen for every eyeball.

Tue, 02/26/2013 - 11:24 | 3277580 W74
W74's picture

Well said Oldwood.  I agree with your assessment, and those last two sentences of yours are especially profound.

Tue, 02/26/2013 - 11:41 | 3277667 Shizzmoney
Shizzmoney's picture

Anyone who believes that "work" is required to create wealth is simply looking for an excuse to enslave people. Real freedom is a tit in every puckered lip and a display screen for every eyeball.

"The working man is a sucker" - Sonny from "A Bronx Tale"

 

Tue, 02/26/2013 - 12:27 | 3277929 Praetorian Guard
Praetorian Guard's picture

Very well said... bravo!

Tue, 02/26/2013 - 15:18 | 3278606 Totentänzerlied
Totentänzerlied's picture

Yeah, no. All those things you say produce wealth, they also consume it, in the form of energy. Only a small minority will ever produce more wealth than they consume in the process.

Tue, 02/26/2013 - 10:52 | 3277414 Sandmann
Sandmann's picture

Why doesn't the US Federal Government take the increase in gas prices as tax to reduce the deficit and cut off hedge funds and prop trading by removing Limited Liability and making Prop Traders operate as Unincorporated Partnerships ?

Tue, 02/26/2013 - 10:52 | 3277415 DaveyJones
DaveyJones's picture

what is this word you speak of - explain?

Tue, 02/26/2013 - 10:52 | 3277418 MFLTucson
MFLTucson's picture

The senante is not bound by insider trading rules so why disrupt thier money making efforts?

Tue, 02/26/2013 - 10:53 | 3277424 Clint Liquor
Clint Liquor's picture

Ben will be explaining to Congress how the FED is going to lose a shitload of money on the $2 Trillion of Treasuries it owns, if interest rates ever go up. Key the 'Deer in Highlights' photo.

Tue, 02/26/2013 - 10:54 | 3277428 Y2JPD
Y2JPD's picture

Its transitory.  The gas prices eventually comes back down and the money supply stays bloated at the new normal....

Tue, 02/26/2013 - 10:56 | 3277438 yogibear
yogibear's picture

Jack Jew will fix everything.  He'll make more profits for Goldman Sachs.

Tue, 02/26/2013 - 10:56 | 3277439 venturen
venturen's picture

NOTE usage of Gasoline is at 1980 levels according to EIA....so it isn't demand. Of course Wall Street doesn't care about supply and demand that is so old fashioned!

Tue, 02/26/2013 - 10:58 | 3277448 Spastica Rex
Spastica Rex's picture

Everywhere at 1980 levels? India? China?

Hmmmmmm......

Tue, 02/26/2013 - 12:00 | 3277779 Sudden Debt
Sudden Debt's picture

At the end of the 90's... I was driving a Camaro ss...

If my fuel consumption would be the same now as it was back than I'D BE IN THE POORHOUSE!

Tue, 02/26/2013 - 10:57 | 3277441 q99x2
q99x2's picture

The thing about LA traffic and construction not changing much over 25 years is probably because decadence rises at the end of civilizations and homosexuals and lesbians from all over the world are flocking here. The other thing is is that fat fucking people take up twice as much space as decent human beings. To house them and to get them where they are going requires more construction and vehicles. 

Tue, 02/26/2013 - 10:57 | 3277442 Hedgetard55
Hedgetard55's picture

Senator Paul: Mr. Bernanke, you are printing 85 billion dollars a month and buying Treasuries with that money. Since the money comes out of thin air, where does it's purchasing power come from? Why would anyone accept it?

Chairman Ben: It comes out of the hide of everyone owning dollars, through currency debasement, Senator. If I print up 10% of the money supply from thin air, there is a 10% drop in the value of the dollar - that is where the purchasing power comes from.

Senator Paul: Mr Bernanke, if you buy a trillion dollars of bonds and they fall 50% in value, who takes the loss?

Chairman Ben: The FED takes the nominal loss of $500 billion, but there is no real loss to us because our cost basis was zero. The real loss is taken again by the owners of dollars, and it was taken when I printed the money and spent it. That remains true until such time as I sell the treasuries back into the market, and take money out of the financial system, at which time the loss is lessened by whatever amount I can get for the treasuries. Fortunately for the FED, not one out of a thousand Americans understands this, or my head would be on a spike in front of the Mariner Eccles Bldg.

Tue, 02/26/2013 - 11:20 | 3277559 espirit
espirit's picture

Yes, we kahn dream.

Tue, 02/26/2013 - 11:52 | 3277738 Crash Overide
Crash Overide's picture

Any predictions when the runaway train crashes?

Tue, 02/26/2013 - 12:09 | 3277832 Hedgetard55
Hedgetard55's picture

Nope. I have been thinking it shold have crashed many times by now.

Tue, 02/26/2013 - 10:58 | 3277447 caimen garou
Tue, 02/26/2013 - 10:58 | 3277449 Disenchanted
Disenchanted's picture

Buck the Fernank

Tue, 02/26/2013 - 10:59 | 3277453 Tsar Pointless
Tsar Pointless's picture

Stawks flying high after a one-day "plunge" and "massive selloff".

All bad news has been replaced by all good news. BUY BUY BUY, bitchez!

Tue, 02/26/2013 - 11:02 | 3277471 rsnoble
rsnoble's picture

Senate grill Ben? More like suck his dick and kiss his ass. 

Tue, 02/26/2013 - 11:02 | 3277473 venturen
Tue, 02/26/2013 - 11:14 | 3277529 Tsar Pointless
Tsar Pointless's picture

Nice.

Bullish, too.

Tue, 02/26/2013 - 12:14 | 3277866 marathonman
marathonman's picture

Gasoline sales tax collapses!  States and US get even more broke.  Sweet. 

Tue, 02/26/2013 - 11:05 | 3277489 Sach Mahoney
Sach Mahoney's picture

O blames it on "big oil" and "speculators" and "house republicans" and "Tsunamis",,,,but the FED balance sheet is sure to inflate by 20% or more by end of year and then 2014 even more.  2014 gas at the pump  $7 / gallon.  How are those solar cars coming along? 

Tue, 02/26/2013 - 11:12 | 3277518 Winston Churchill
Winston Churchill's picture

Becalmed.

Their auxillary power unit(sails)aren't working.

Tue, 02/26/2013 - 11:14 | 3277507 thismarketisrigged
thismarketisrigged's picture

dear senate, please ask this douchebag to explain this.

 

why the fuck are you printing money if the economy is so fucking good? all these great numbers that these jackasses on cnbc are touting about, and all this shit, and yet u continue to print?

 

fuck u bernanke, fuck u bullard, fuck u wall st, fuck u obama, fuck u goldman sachs. now we know why the market sold off yesterday. it was for all the big banks to get out and then be able to buy back at a lower price.

 

fuck them all, i wish every single one of those ppl/ companies nothing but the worst in life. fucking douchebags

Tue, 02/26/2013 - 11:56 | 3277754 Crash Overide
Crash Overide's picture

Wait a minute, are you saying this whole thing could be rigged and they lieing to us?

Because I am beginning to think something is off here ;)

Tue, 02/26/2013 - 11:57 | 3277764 the grateful un...
the grateful unemployed's picture

actually if the economy were so wonderful they would have to print real money, and that would mean inflation, so interest rates would go up (maybe) so to pull the economy up by its bootstraps they created the money just as if the economy were growing, with the assumption that the rest of the parts would come together. (but they can't just hand the  money out, that would be pure Marxism- Bernanke only likes Marxist lite) the result was a lot of distortions, like i can't go to work because i am sicker than a dog, but i go to work anyway and pretend i am the same as always, and i make a lot of mistakes. (according to MSM the market sold off yesterday on election results from italy - apparently we are in with the ECB, up to our necks- though we say we aren't, just as we said Fannie and Freddie didn't have government guarantees and they did - and Goldman doesn't have a single retail outlet but it has FDIC) yes its very corrupt out there. and Bernanke is crying QE is dead, Long Live QE!!

Tue, 02/26/2013 - 11:10 | 3277508 riphowardkatz
riphowardkatz's picture

Dear concerned citizen,

thanks for your tip but your knowledge of economics pails in comparison to mine as is reflected in my bank account compared to yours. the obvious cause of spikes are...

speculators
profit gauging
weather
refinery shutdowns
seasonal blend changes
bush
big oil
reliance on foreign supplies

Sincerely,
Fancy Nancy Pelosi 

Tue, 02/26/2013 - 11:10 | 3277513 the grateful un...
the grateful unemployed's picture

we're talking gASS-et prices here. the class of assets moves together (we are in a one market world, and the economy in that world splits into assets and income. Bernanke's Fed is sworn to defend ASSETS, including housing, energy, and yes, even gold) if income is falling, personal income for sure, that is because there isn't enough economic growth to levitate everything. there will be growth in income if asset prices are allowed to find a level where economic activity picks up. if economic activity picks up asset prices will fall (conundrum) which long ago Fed dim bulb Wayne Angel noted, that 'raising interest rates was the way to stimulate the economy', while conversely lowering interest rates actually dampened economic activity. history has proven him correct. falling gas prices portend deflationary crash mode. in the area of foreign policy the muslim brotherhood is bad for oil prices, because they will sell what they have to feed the people. that only fuels deflation, (since developed nations have are the biggest part of the global economy, so goes the world). Obama is on the Bernanke Wall Street side of protecting assets to the detriment of the economy, something Bob Novak told Bush some years ago. Run this economy for business and forget the stock market. Neither Bush nor Obama followed that advice.

Tue, 02/26/2013 - 11:13 | 3277527 Catullus
Catullus's picture

Forgot to add the production and consumption graphs in case the demand pull/supply push convoluted garbage comes out.

Tue, 02/26/2013 - 11:17 | 3277541 Aegelis
Aegelis's picture

Up is the new down.  Stocks are up, unemployment is up, gas prices are up, national debt is up, food prices are up, CPI and inflation are up, taxes are up, etcetera.  C'mon man, get with the times!

Tue, 02/26/2013 - 11:30 | 3277618 Fix It Again Timmy
Fix It Again Timmy's picture

I have a dream:

Senator Rand Paul to the Bernank: "Whose bitch are you?"

Tue, 02/26/2013 - 11:43 | 3277677 Shizzmoney
Shizzmoney's picture

I have a dream:

Senator Rand Paul to the Bernank: "Whose bitch are you?"

Senator Rand Paul's Big Oil backers to him: "Shut the fuck up, dude."

Tue, 02/26/2013 - 13:16 | 3278127 Clowns on Acid
Clowns on Acid's picture

you know so little....

Tue, 02/26/2013 - 11:34 | 3277627 benbushiii
benbushiii's picture

Mr. Bernanke,

Senate: We are so happy to have you here.  Please let us ask you some questions so you can continue to justify funding our socialist and entitlement programs with new monopoly money.  We realize since 1913 we have entrusted the Federal Reserve with the ability to provide the TBTF banks with a perpetual back stop to create a debt serfdom.  Recently we enhanced your powers by providing cover with new mandates for low inflation (where you can manipulate the numbers to your liking) and low unemployment (where you have no hope of printing jobs, but give solace to the unemployed while you funnel huge amounts of money to the Financial institutions your represent). 

Memo to staff: 1. Do  Not ask Mr. Bernanke about the common man in the context of rising expenses.  2. Never ask Mr. Bernanke to draw a conclusion between QE and tax increases on the majority.  3. Never ask Mr. Bernanke how comfortable the Fed feels being an unelected fourth branch of government influenced by political ambitions and the Banks.

 

Tue, 02/26/2013 - 12:05 | 3277813 the grateful un...
the grateful unemployed's picture

1) They used to ask my predecessor about the common man? Who was that Rep, Waters? She wanted Fannie and Freddie to be there for a few poor blacks in SoCen LA. Then the whole damn finance industry piled in with toxic mortgage paper on McMansions. I don't want to get into personalities, so let's say I am for employment.

2) If I am the left hand of government and you all are the right hand and the left hand doesn't know what the right hand is doing. It's magic I guess.

3) I wish I was more independent, but not being independent I can't really say that. I just hope that SCOTUS recognizes the rights of the FED as an individual. I am tired ot all this transparency.

4) I sort of feel like Cleavon Little, the sheriff in Blazing Saddles, when the townspeople first met him, and they realized he was BLACK. He had to put a gun to his own head and threaten himself. That's sort of where I am at, don't shoot or the Fed chief gets it!

Tue, 02/26/2013 - 11:44 | 3277683 Glass Seagull
Glass Seagull's picture

Bernanke: "Haha!!! QE doesn't increase gas prices!!"

[he exclaims as his eyes nervously dart toward his Nymex OTC trader who is busy aggressively bidding for RBOB swaps with an unlimited line]

Tue, 02/26/2013 - 11:46 | 3277707 Meat Hammer
Meat Hammer's picture

The strategy is to collapse the economy and blame the only thing that could've saved it - true capitalism.   We've all heard Obama blame capitalism for socitey's ills. They'll say if it weren't for The Fed, the economy would've collapsed long, long ago.  This has always been the plan.  They know that when Sickcare is implemented, the effects will be disastrous and the economy will finally be unsustainable with QE.  That will be the day when the Socialists can finally save us from ourselves.  

They'll name a bridge after our savior, Bernanke, and put Obama on Mt Rushmore.  The sheeple will have no idea what happened.

But we will.  

Tue, 02/26/2013 - 11:52 | 3277737 Sudden Debt
Sudden Debt's picture

I'm watching this movie on youtube:

Argentina's Financial Collapse -- Documentary -- FULL

It's a good view for what's comming....

 

It says it very well in the beginning: FROM APATHY TO REVOLUTION IN 1 WEEK

Tue, 02/26/2013 - 13:28 | 3278172 Bobportlandor
Bobportlandor's picture

It says it very well in the beginning: FROM APATHY TO REVOLUTION IN 1 WEEK

 

Funny you should post this I woke up this morning thinking people are at a point of exhaustin. I see it throughout the web. 

The issues have been beaten to death and nothing changes. Their is no one to stand up and say enought is enough.

Yep Bankers were smart they put Beavis and Butt head in charge.

Tue, 02/26/2013 - 11:55 | 3277748 Stuck on Zero
Stuck on Zero's picture

Bernanke doesn't work for he United States.  He works for the banksters and they are happy as pigs in shit.

 

Tue, 02/26/2013 - 12:25 | 3277899 Yardfarmer
Yardfarmer's picture

this is a great post which accurately depicts the the manipulation and corruption of our financial system. another signifcant correlary is that the US consumerist has been floating the US Treasury bond at the gas pump for decades. of course the Fed's incredible and unprecedented present massive subsidy of the astronomical national indebtedness via the bond market is indelibly welded to oil purchases from the House of Saud et al. the Fed's "hidden tax" of inflation is most painfully evident every time you fill 'er up and embodies, along with draconian taxes on capital formation, the shackles that bind the ordinary citizen to the present maintenance of interest alone on the behemoth and unpayable $200T national debt.

the Achilles heel of our financial system is of course the bond market whether that be municipal, state or federal. the price at the pump will thus continue to rise exponetially to meet this fradulent criteria. however the crushing weight of the notional derivative markets and their intrinsic connection to the bond yields will inevitably thoroughly undermine the already overstressed debt service via the US Treasury and its enslavement to the Zionist bankers of the Fed. the paper price of Gold and Silver, usually a faithful barometer of the inevitable devaluation of the currency,is of course being suppressed via massive naked shorting gratis the bullion banks in collusion with the reuglatory agencies to produce at least the temporal manifestation of the "strong dollar" which as everybody(?) knows is at least the apparent aim of our financial engineers. haha.

In reality though the social controllers want nothing less than the utter impoverishment of the American citizenry and their increasing dependency upon and subsequent bondage to the fascist government and their ultimate relegation to the status of docile serfs and vassals of the corporate state.Those billions of rounds of hollow point .40 caliber ammunition which the goons at Department of Homeland Security are presently expending into targets depicting images of generic American citizens as well as the military drones flooding the skies of America, not to speak of the confiscation of guns and the present interdiction of supplies of ammunition are for those "dead enders" who might seriously object to such a scenario. good luck friends.

 

Tue, 02/26/2013 - 12:27 | 3277928 helping_friendl...
helping_friendly_book's picture

Maybe they will load the billions of rounds of ammo into drones?

Just a thought.

Tue, 02/26/2013 - 12:25 | 3277915 helping_friendl...
helping_friendly_book's picture

The 'nanke is in front of the Senate right now.

The dumb-ass Senator is asking Bernake why frbny is not doing Congress' job?

Tue, 02/26/2013 - 12:26 | 3277923 Praetorian Guard
Praetorian Guard's picture

Wow, watching Bernanke right now, and he looks beyond tired, nervous, and scared...

Tue, 02/26/2013 - 12:33 | 3277949 helping_friendl...
helping_friendly_book's picture

The Senate is trying to pin the sequestration on the 'nanke!

Unbelievable!

Fucking Congress gives their power away and then blames the frbny when they do nothing.

I don't even think they grasp that it is THEIR (Senate) job to pass a budget.

It is fun watching them try to pin it on Ben.

Tue, 02/26/2013 - 12:40 | 3277994 helping_friendl...
helping_friendly_book's picture

Now Sen. Coburn just said Japan is following the USA in QE!!!!

What a fucking cluless douche bag!

Japan has been doing QE for 15 years.

http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm

Idiots.

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