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Post-Mortem Of Bernanke's Prepared Remarks

Tyler Durden's picture


From SocGen:

Bernanke downplays costs of easing

Here's Bernanke's list of the costs/risks associated with further asset purchases, and his assessment about the severity of those risks:

1. On the cost that concern about exit will undermine long term inflation expectations: In Bernanke's words, "the committee remains confident that it has the tools necessary to tighten monetary policy when the time comes to do so". He points to recent inflation trends which remain subdued, and to inflation expectations which remain well anchored in Bernanke's view.

2. On financial stability risks: The Fed's longstanding view is that monetary policy is too blunt a tool to deal with potential mispricing of risk in various asset markets and instead these concerns should be addressed through supervisory channels. Bernanke appears to cling heavily to this view. He notes in his testimony that the Fed has substantially expanded its monitoring of the financial system. The Fed's approach to supervision of financial firms has also taken a more systemic perspective since the crisis. Bernanke acknowledges that a long period of low rates could encourage excessive risk-taking, but concludes that the potential costs outweigh the benefits of promoting a stronger recovery and more rapid job creation.

3. On the risk of future capital losses and their implication for the federal budget: Bernanke acknowledges, in-line with recent Fed studies, that asset sales in a rising rate environment could lead to a period of capital losses. This, in turn, may force the Fed to suspend remittances to the Treasury, which could have an adverse impact on budget projections. Bernanke downplays these concerns and suggest that the Fed's activities have to be viewed holistically. He notes that even in the case of sharply reduced remittances to the Treasury in future years, total remittances during the entire balance sheet expansion will have been larger than during the pre-crisis period. He also underscores that better economic outcomes will ultimately improve the budget situation, implicitly arguing in favour of further asset purchases rather than against them.

Leaning against fiscal restraint

Bernanke also warns that the sequester could impose additional near-term burden on the recovery. He cites the CBO's estimate that it will contribute to 0.6% of fiscal drag this year. This is on top of the drag from tax increases that went into effect on Jan 1. In the context of the fiscal tightening currently underway, Bernanke does not seem to be in a hurry to scale back QE in the near future.

* * *

Of course, none of the above commentary from SocGen does nearly enough justice to Bernanke's response to Senator Shelby whether the Fed's record balance sheet has ever been higher: "there are other central banks whose balance sheets have been this large, such as Japan."

Well, since it worked for Japan.

Finally this, which the market may want to pay attention to: Bernanke says there may be ‘frothiness’ in some asset classes.


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Tue, 02/26/2013 - 12:36 | 3277968 _ConanTheLibert...
_ConanTheLibertarian_'s picture

3....2....1....FUCK YOU BERNANKE!!!!!!

Tue, 02/26/2013 - 12:41 | 3277998 McMolotov
McMolotov's picture

Shorter Bernanke: "I'm gonna keep giving money to my pals for as long as I think I can get away with it. The rest of you can go fuck yourselves."

Tue, 02/26/2013 - 12:56 | 3278063 GetZeeGold
GetZeeGold's picture



Any word of the Germans and their gold?

Tue, 02/26/2013 - 13:05 | 3278074 SafelyGraze
SafelyGraze's picture

1. copy the nank text

2. paste into google translate

3. auto-detect language (from fedspeak to english)

"the committee remains confident that it has the tools necessary to tighten monetary policy when the time comes to do so".

[when the time comes to remove trillions of dollars from M2 or M3 or whatever, we can sell those treasurys and MBSs. that will be an episode to remember. bitchez.]

Tue, 02/26/2013 - 13:09 | 3278097 SafelyGraze
SafelyGraze's picture

"The Fed's longstanding view is that monetary policy is too blunt a tool to deal with potential mispricing of risk in various asset markets and instead these concerns should be addressed through supervisory channels. "

[monetary policy lifts all boats. which is unfortunate. we want to selectively lift housing and s&p. therefore we use .. let's call them 'supervisory channels' .. we need to manipulate .. um .. let's call it 'deliberately direct' .. certain sectors so that the numbers conform to numbers that would indicate economic health, while suppressing numbers that would indicate economic trouble]

Tue, 02/26/2013 - 13:14 | 3278112 McMolotov
McMolotov's picture

Any word of the Germans and their gold?

"What do you mean, their gold?" —Uncle Ben

Tue, 02/26/2013 - 13:18 | 3278139 AZLagun
AZLagun's picture

"We are all Germans now" - Uncle Ben

Tue, 02/26/2013 - 13:15 | 3278126 Moe Hamhead
Moe Hamhead's picture

Ben, I'd like to pick up some of my gold that your storing.  Sure, stop by in ---seven years!!

Tue, 02/26/2013 - 13:42 | 3278239 kliguy38
kliguy38's picture

Yes. "We HAD your gold and double dog fuck yo momma Hans" ..... 

Tue, 02/26/2013 - 14:06 | 3278339 azzhatter
azzhatter's picture

Italy has Bepe, we have Benny. Two comedians

Tue, 02/26/2013 - 12:38 | 3277977 buzzsaw99
buzzsaw99's picture

The Fed's longstanding view is that monetary policy is too blunt a tool to deal with potential mispricing of risk in various asset markets...


Translation: We blow bubbles, it's what we do.

Tue, 02/26/2013 - 12:40 | 3277992 Cognitive Dissonance
Cognitive Dissonance's picture

One size (always larger than the last time) fits all.

<OK.......on the count of three everyone BLOW.>

Tue, 02/26/2013 - 12:41 | 3278001 buzzsaw99
buzzsaw99's picture

Bernanke: How can there be a dump without first having a pump? Ebb and flow, ebb and flow...

Tue, 02/26/2013 - 13:48 | 3278252 francis_sawyer
francis_sawyer's picture

"The Fed's longstanding view is that monetary policy is too blunt a tool to deal with potential mispricing of risk in various asset markets..."


Translation: "The Fed's longstanding achievement has been that we're a bunch of BLUNT TOOLS, who can do no more than misprice risk & asset markets because we're rank academics when it comes to formulating monetary policy"

It's all in the SYNTAX, you see...

Tue, 02/26/2013 - 13:50 | 3278263 nofluer
nofluer's picture

So you're saying that The Bernank is blowing bubbles in the TUB? And thus the FED is underwater?

Tue, 02/26/2013 - 13:58 | 3278304 francis_sawyer
francis_sawyer's picture

 "When we were little, we used to have to fart in the tub when we wanted a jacuzzi"

~ Billy Ray Valentine, CAPRICORN

Tue, 02/26/2013 - 12:42 | 3278008 McMolotov
McMolotov's picture

We make money the old-fashioned way: We counterfeit it.

Tue, 02/26/2013 - 12:45 | 3278021 Id fight Gandhi
Id fight Gandhi's picture

We've never had central banks print and control so much, for so long. How can he say it will be fine?

There has been zero examples of any of this ending well anywhere in the world.

Tue, 02/26/2013 - 13:44 | 3278241 AmCockerSpaniel
AmCockerSpaniel's picture

""We've never had central banks print and control so much"" Need to read "When Money Dies" by Adam Fergusson. Oh; Sorry I forgot that few read any more.

Tue, 02/26/2013 - 13:54 | 3278290 nofluer
nofluer's picture

Reading - am through the prologue and into Chapter 1.

Tue, 02/26/2013 - 17:11 | 3279181 Bandit und Buster
Bandit und Buster's picture

"There has been zero examples of any of this ending well anywhere in the world."

But this ain't meant to end 'well', not for the 'goy'! Get it?

This is for the Zionist bankters!  They been planning this for a very long time!

Tue, 02/26/2013 - 12:38 | 3277978 Sutton
Sutton's picture

"Frothiness" to Ben applies to Gold and Silver.

Tue, 02/26/2013 - 12:43 | 3278010 max2205
max2205's picture

no, on your cappacino

Tue, 02/26/2013 - 13:23 | 3278107 Renewable Life
Renewable Life's picture

There really is no fucking end to this pricks arrogance!!!  If I have to listen to this smug bearded fuck much longer, I'm going to start drinking at 8am!!

And on another note, while I'm ranting, I'm getting tired to watching these BS MSM outlets running "stories" on how all these poor fucking .gov workers are going to be ruined by the "job cuts" coming! What the fuck do you think the rest of the County has been going thru for the last 5 years!! Where's their fucking news story?? Whats funny is, these idiots thought because they were in the gov, they were immune from reality!

Gov jobs are most bloated, inefficient, lazy, bullshit, overpaid jobs on the planet! The sooner we cut 10 million more of these bullshit jobs and open up the RFP process for private business to fill the void, the better!

Tue, 02/26/2013 - 13:39 | 3278225 BullsNBeers
BullsNBeers's picture

Yup. Nothing like paying a guy 60k to clean debris out of storm drains plus a good vacation, pension and health insurance plan.

Private sector translation of this position= Illegal imigrent making six bucks an hour.


Tue, 02/26/2013 - 12:38 | 3277980 DoChenRollingBearing
DoChenRollingBearing's picture

I have heard NOTHING that would change my opinion that our government and Fed are completely working against our economic interests.  I do not believe that either the Congress (include Obama here) or the Fed will do anything positive.

Non-believers should buy some gold.

Tue, 02/26/2013 - 12:41 | 3278002 JenkinsLane
JenkinsLane's picture

If you are not a member of the elite you are a peasant and therefore irrelevant.

Tue, 02/26/2013 - 13:12 | 3278104 eclectic syncretist
eclectic syncretist's picture

Physical gold and silver are the best put/bet against the powers that be. 

Tue, 02/26/2013 - 13:46 | 3278250 kliguy38
kliguy38's picture

Sorry Gretel but they've been dog foching you for years and listening to him shows you still believe that something he might say would be otherwise truthful or at the very least worth listening to.........

Tue, 02/26/2013 - 17:17 | 3279208 Bandit und Buster
Bandit und Buster's picture

but...but ... THEY PLANNED IT THIS WAY.  AND YOU'RE NOT supposed to say anything or YOU are anti-semitic! (never mind that 'they' are not semitic NOR Hebrews, but mongul turks)




Tue, 02/26/2013 - 12:38 | 3277982 Abraxas
Abraxas's picture

Fiscal restraint??? I'd like to see some of them stuff.

Tue, 02/26/2013 - 12:40 | 3277996 knukles
knukles's picture

0.6% fisacl drag..
Now that's from a bunchs models which consistently OVERESTIMATE economic activity.


Tue, 02/26/2013 - 12:38 | 3277983 Cognitive Dissonance
Cognitive Dissonance's picture

Buyer (of the propganda) beware.

Tue, 02/26/2013 - 12:41 | 3278000 knukles
knukles's picture

All just show supporting the Big Lie.

Tue, 02/26/2013 - 12:39 | 3277987 americanspirit
americanspirit's picture

Good Lord - I thought this article was a post-Mortem on Bernanke. What a disappointment.

Tue, 02/26/2013 - 12:48 | 3278037 McMolotov
McMolotov's picture

Cause of death: explosive verbal diarrhea.

Tue, 02/26/2013 - 12:39 | 3277989 wonderatitall
wonderatitall's picture

obama your daddy said print mudder foker or he drone you ass

Tue, 02/26/2013 - 12:42 | 3278007 sodbuster
sodbuster's picture

The best part of Obama, ran down his mama's leg.

Tue, 02/26/2013 - 12:40 | 3277991 ekm
ekm's picture

The last act of luring suckers, before the shit hits.


He is a bad actor also, Greenspan would act much better, as if he was believing what he was saying.

Tue, 02/26/2013 - 13:13 | 3278116 eclectic syncretist
eclectic syncretist's picture

He's thinking about his legacy, and how it's becoming painfully obvious that his great book that he'll write a few years from now will have to be titled something like "How I was really right all the time I was wrong".

Tue, 02/26/2013 - 12:40 | 3277993 Cursive
Cursive's picture

Ha!  BernanQE is punking all of us:  "We're turning Japanese, bitchez!"  I'll go out on a limb with a "bold" prediction:  The FRB will definitely suspend payments to the UST within the next 3 years.

Tue, 02/26/2013 - 12:45 | 3278024 LawsofPhysics
LawsofPhysics's picture

Suspension of payments or real interest rate hikes (range bound at or below 2% on the ten year now) are the death knell.  Neither will be allowed to occur publically so long as the U.S. military and the MIC retains it's current position in the world

Tick tock bitches.

Tue, 02/26/2013 - 12:41 | 3277999 World of Debt
Tue, 02/26/2013 - 12:52 | 3278050 Mi Naem
Mi Naem's picture

Man, I sure wish you would quit SPAMMING ZH with ads for that pitifully lame YouTube video you made. 

However, since you haven't got the common sense to realize that you should be ashamed of that embarrassing farce, I doubt you will stop on your own.  Perhaps a Tyler will also grow weary of you SPAMMING their boards. 

Tue, 02/26/2013 - 15:54 | 3278545 Mi Naem
Mi Naem's picture

Well how about that WoD! 

Your mommy got on the boards and up arrowed you and down arrowed me. That's nice. 


Seriously, this guy's been on ZH for a little over a week, and according to this is all he has to say:

Post date ID Author Title 02/26/2013 - 11:41 3277999 World of Debt Funny: World of 02/24/2013 - 13:09 3271803 World of Debt World of Debt: Funny 02/23/2013 - 18:04 3270441 World of Debt Funny video concerning the 02/23/2013 - 13:32 3270023 World of Debt Hilarious music video about 02/23/2013 - 13:27 3270018 World of Debt Funny music video on the 02/23/2013 - 13:26 3270013 World of Debt Funny music video about the 02/23/2013 - 13:23 3270011 World of Debt Hilarious new video/song: 02/23/2013 - 12:38 3269945 World of Debt Skip: what a twisted,
Tue, 02/26/2013 - 12:41 | 3278003 Cdad
Cdad's picture

This is the most surreal Fed hearing in my memory.  Not only are some very long postponed "concerns" being put to Mr. Bernanke, also...Mr. Bernanke's poor lying skills are well on display.  

Anticipating a close today with far, far less "hope" than is priced in at this point in the market session.  It would appear that a thought I posited sometime back is sharpening...namely that the nexus between DC and Wall Street is cracking, and that these two entities seem to be preparing to blame one another...for what is clearly coming.

Good luck out there, my brothers.  

Tue, 02/26/2013 - 12:57 | 3278059 Mrmojorisin515
Mrmojorisin515's picture


they feel the same way


Also beware because i'm the one who is going to gladly take away your money or some shit according to an old teapartier who can't grasp that the empire has to go

Tue, 02/26/2013 - 13:17 | 3278132 eclectic syncretist
eclectic syncretist's picture

The shit is flying through the air, the trajectory is perfect, the windspeed optimal, the velocity high, the fan is running full speed, and Bernanke is chained within the spray zone.  I love it.

Tue, 02/26/2013 - 12:42 | 3278006 LawsofPhysics
LawsofPhysics's picture

Would like to see just one eCONomist try and explain what the "price" of something is that is required for survival, but that is either unavailable or that I refuse to sell.  Supply lines have very real inputs that cannot be printed out of thin air.  Humanity isn't just a ponzi, it's the ponzi.

Tue, 02/26/2013 - 12:42 | 3278009 diogeneslaertius
diogeneslaertius's picture

you dont unwind a con game untill the last sucker is broke

Tue, 02/26/2013 - 12:43 | 3278011 Vashta Nerada
Vashta Nerada's picture

Bernanke  truly believes he can reflate the bubble.

Tue, 02/26/2013 - 12:54 | 3278055 WatchingIgnorance
WatchingIgnorance's picture

Chairman: "So, our economy is built on bubbles?"

Bernanker: "There is no chance in that."

Chairman: "So, what is going on?"

Bernanke: "Some of the bubbles are exerting frothiness."

Tue, 02/26/2013 - 17:30 | 3279273 Bandit und Buster
Bandit und Buster's picture

"Bernanke truly believes he can reflate the bubble"  NO, HE truely WANTS YOU to believe it!

He's not stupid, he IS a lying deciever

the below is from "the Protocols of the Learned Elders of Zion" 


4. The GOYIM are a flock of sheep, and we are their wolves. And you know what happens when the wolves get hold of the flock? ....

5. There is another reason also why they will close their eyes: for we shall keep promising them to give back all the liberties we have taken away as soon as we have quelled the enemies of peace and tamed all parties ....

6. It is not worth to say anything about how long a time they will be kept waiting for this return of their liberties ....

7. For what purpose then have we invented this whole policy and insinuated it into the minds of the GOY without giving them any chance to examine its underlying meaning? For what, indeed, if not in order to obtain in a roundabout way what is for our scattered tribe unattainable by the direct road? It is this which has served as the basis for our organization of SECRET MASONRY WHICH IS NOT KNOWN TO, AND AIMS WHICH ARE NOT EVEN SO MUCH AS SUSPECTED BY, THESE "GOY" CATTLE, ATTRACTED BY US INTO THE "SHOW" ARMY OF MASONIC LODGES IN ORDER TO THROW DUST IN THE EYES OF THEIR FELLOWS.

Tue, 02/26/2013 - 12:45 | 3278019 valkir
valkir's picture

Postmortem is very easy and short-Horse stick for Bernanke.

Tue, 02/26/2013 - 12:45 | 3278027 dracos_ghost
dracos_ghost's picture

"Bernanke says there may be ‘frothiness’ in some asset classes."

Yeah, the "frothiness" comment was almost like "irrational exuberance" ala Greenspan. But then again, he might have been talking about fart bubbles in the tub.


Tue, 02/26/2013 - 12:56 | 3278065 akak
akak's picture

Yeah, Bernanke you Faustian bastard, "frothiness".

That's a nice euphemism for "declining standard of living".

Tue, 02/26/2013 - 14:16 | 3278371 TheFourthStooge-ing
TheFourthStooge-ing's picture

"No need to worry about frothiness, because it is only emulsionary." </economentia>

Tue, 02/26/2013 - 14:24 | 3278408 akak
akak's picture

I wish I could share with Bernanke some of the equally delightful "frothiness" that I experienced several years ago as a result of transitory, giardia-driven explosive diarrhea.

Tue, 02/26/2013 - 15:07 | 3278552 dontgoforit
dontgoforit's picture

But without it, it's like a cake without the frosting or a birthday without the birth.

Tue, 02/26/2013 - 13:41 | 3278233 Liquid Courage
Liquid Courage's picture

Actually, froth was originally another fine example of Greenspeak. As this NYT article from 2005 attests, Bennie learned the term at the feet of the master.


Tue, 02/26/2013 - 13:01 | 3278060 Dr Paul Krugman
Dr Paul Krugman's picture

I am losing faith that the opposition to proper monetary policy will ever understand that economics is a science, and with the rigor of a science, determinations are made for the betterment of our society.  A lot of you are just angry with your lives.  Maybe you lost your job, or fell out of love with a partner, but whatever it is, please understand that there is a group of people who have your best interests at heart and will do what is right so to put us back on track.

Tue, 02/26/2013 - 13:08 | 3278087 LawsofPhysics
LawsofPhysics's picture

Tell us then, what is the "price" of something that is essential for your survival, but that is unavailable for delivery or that I refuse to sell?  Do you refute that supply lines have very real inputs with hard limits?  Come on, let's see if that nobel really means anything.  Seems to me there is no limit to paper promises but if that is your only model, it has no foundation in reality.

Tue, 02/26/2013 - 13:22 | 3278157 MarsInScorpio
MarsInScorpio's picture



You know it's satire . . . you do know that, don't you?


Tue, 02/26/2013 - 14:07 | 3278344 LawsofPhysics
LawsofPhysics's picture

Yes, but it's fun to get him to respond (which both him and MDB sometimes do).  You do know how to troll don't you?

Tue, 02/26/2013 - 17:46 | 3279344 OldE_Ant
OldE_Ant's picture

btw.  While I fail this at times a courtesy of letting people know your making a sarcastic post reveals some element of respect for those reading.  So unless your the poster you are assuming based on your own subjective views.

No way to know if someone is being serious or not unless they say so, and even then people lie all the time especially on the web.

I have not achieved mind melded reading status and so some of us out here presume people mean what they write.  But hell it only takes a day or two to realize at least 90% of the posts on this and other sites are people who get their kicks out of jerking on other peoples emotional strings.

Which shows to me entirely how our society has completely degenerated into faceless, sympathyless solipistic fucks who may actually deserve to get what they give.

Ah too bad Karma seems to have very long delays.

Tue, 02/26/2013 - 20:03 | 3279832 Just Ice
Just Ice's picture

ditto.  i find nothing humorous in persons masquerading as repulsive persona, wasting peep's time with imbecilic arguendum.

Tue, 02/26/2013 - 13:09 | 3278098 Mi Naem
Mi Naem's picture

I for one always appreciate your condescension, "Doc". 

Try to understand, though, that the anger and bitterness you persistently read here is the most appropriate initial response to relentless lying about data, bogus analysis, and pervasive propagandizing in virtually every corporate controlled venue on the planet. 

In short, you're full of crap, and we're on to you.  When the SHTF, where do you and your colleagues think you will be able to hide from people with nothing left to lose? 

Tue, 02/26/2013 - 13:20 | 3278148 MarsInScorpio
MarsInScorpio's picture



Please tell us that you are not so dense that you fail to understand his writing is satire . . .


Tue, 02/26/2013 - 13:22 | 3278155 akak
akak's picture

Are you sure?  Can you PROVE that it is only satire?

I agree that it likely is --- but who knows?

Tue, 02/26/2013 - 13:27 | 3278171 MarsInScorpio
MarsInScorpio's picture



You are actually proposing that the real Krugman is posting on ZH?


Seriously, are you really proposing that?


If it isn't the real Krugman, then the only alternative is that it is someone who is a satirical writer composing obviously ludicrious remarks for the purpose of illustrating the absurdity of Krugman, et. al.


So, not satire? "Abandon all reality, ye who enter such thoughts."


Tue, 02/26/2013 - 13:48 | 3278261 akak
akak's picture


You are actually proposing that the real Krugman is posting on ZH?

Seriously, are you really proposing that?

No, I am proposing that it is possible.

Krugman does, by his own admission, venture into the blogosphere from time to time.  And ZeroHedge is one of the more prominent sites dedicated to matters dear to his heart.

Are you proposing that Krugman NEVER might make comments online, here or elsewhere?

Seriously, are you really proposing that?

Tue, 02/26/2013 - 14:13 | 3278357 Shell Game
Shell Game's picture

Case in point, the Tylers and Roubini go at each other big on Twitter at times.  This shit is real folks, there are real asshole PhDs with real egos and real online activities who cannot stand Austrian economics and want to (try) to show the world they are iSmart. Try, and fail.

Tue, 02/26/2013 - 13:09 | 3278100 aardvarkk
aardvarkk's picture

Don't be down-arrowing Dr. Paul unless YOU are willing to step up and provide us equally compelling entertainment.

Tue, 02/26/2013 - 13:14 | 3278121 Mi Naem
Mi Naem's picture

Dr. Paul is a patriot and a hero.  "Dr." Krugman is, well, not. 

Tue, 02/26/2013 - 15:04 | 3278541 dontgoforit
dontgoforit's picture

Right.  He takes the 'guess' out of 'guesswork'!

Tue, 02/26/2013 - 13:18 | 3278141 MarsInScorpio
MarsInScorpio's picture

As always, brilliant satire.


Pity there are so many idiots who don't get it and vote down arrows . . .


Tue, 02/26/2013 - 13:25 | 3278163 Mi Naem
Mi Naem's picture

OK, you got me. 

I've heard and read (apparently just) enough of Krugman that that seems like his real voice to me. 

As a public writer and commentator, it seemed reasonable to me that he might come here (among other sites) to publicly, in-your-face style do a little opposition research, and enjoy poking fun at the proles before he leaves. 

Egg on my face.  Oops. 

Tue, 02/26/2013 - 13:31 | 3278188 MarsInScorpio
MarsInScorpio's picture



Thank you. Your reply shows you have a lot of class.


The ability to so convincingly mock Krugman's style is the brilliance of the writing.


Tue, 02/26/2013 - 13:33 | 3278201 Mi Naem
Mi Naem's picture

Hmmm, so you're Dr. K? 

Now that would be amusing. 

Tue, 02/26/2013 - 13:35 | 3278207 slightlyskeptical
slightlyskeptical's picture

Yes the Fed is acting in the interest of your society. They are not however acting in the interest of our society.

If they were, there would be some straight shot stimulus - like refinancing all the MBS they buy directly with the homeowners. Just send a letter...these are your new terms...accept or deny.

This would put money where it is needed..straight into the consumers pocket...building bank reserves is doing nothing for us.

Tue, 02/26/2013 - 14:12 | 3278355 nofluer
nofluer's picture

So you're underwater on your mortgage, eh?

A FED refi of mortgages = ZERO money into the economy becaused the money would NOT go to the homeowner... just a credit. And the money would NOT go to the banks either as they only get FED overnight/reserve credits. (Like the "purchase by the FED" of the MBS' where the FED paid NOTHING for them, but credited the bank's accounts at the FED - and meanwhile the FED started collecting the cash paid on mortgages by the home owners, thus actually reducing cash going to the banks.) How do you think The Bernank has avoided the appearance of overt inflation all this time while printing $trillions?

And the result would be more US debt with a ZERO "stimulus" to the economy. (Due to the broken window effect, spending of government money harms the economy, not helps it.)

Tue, 02/26/2013 - 13:51 | 3278276 Liquid Courage
Liquid Courage's picture

rigor of a science


So then if you and your PhD playmates are applying the "rigor of a science", you can no doubt cite some empirical (experimental) evidence supporting your hypothesis and proving that your monetary nostrums will repeatably result in the outcome you expect.

What? No? Then how can Economics be a Science if it cannot employ the Scientific Method?

Tue, 02/26/2013 - 15:00 | 3278521 dontgoforit
dontgoforit's picture

more like rigor mortis

Tue, 02/26/2013 - 13:58 | 3278307 venturen
venturen's picture

Dr K you channel Krugman pretty well...the abject sanctimony, the stupidity of believe in the system that keeps failing, the defending of the out right rape of the American people by Wall Street with Washington's assistance. Didn't Greenspan keep saying that all is under control and there is no inflation or problems as housing prices triple along with food. You are in a bubble that logic can't reach...but you will be proven to be clueless nitwit that you are! 


Explain why gasoline prices are near a record while demand is below 1980? It is called inflation? Explain why Wall Street is handing out record bonuses while the "regular" economy struggles? Please enlighten us where housing goes from interest bottom is bottom and normal people see no wage growth and the young have record unemployment....please show us how smart you are!



Tue, 02/26/2013 - 14:00 | 3278313 venturen
venturen's picture

And while you stuggle to explain the economy...please explain why the paper you write dying? Why no one but a few hard left liberal read it anymore? You and your paper are pretty much a laughing stock at this point. 

Tue, 02/26/2013 - 14:21 | 3278393 TheFourthStooge-ing
TheFourthStooge-ing's picture

Dr Paul Krugman, Sveriges Riksbank Economic Scammery Nobel Participation Trophy frootloopeate, said:

I am losing faith that the opposition to proper monetary policy will ever understand that economics is a science

Economics exists in order to make astrology appear scientific.

Tue, 02/26/2013 - 15:38 | 3278679 akak
akak's picture

I've read that Herr Doktor Krugman was born under the sign of Keyneser, with an ascending moonbat and a descending Uranus.

Tue, 02/26/2013 - 20:11 | 3279852 Just Ice
Just Ice's picture

"...a descending Uranus"

That's what that was.  I mistook it for a dag.

Tue, 02/26/2013 - 14:58 | 3278515 dontgoforit
dontgoforit's picture

Whoa, Paul - sorry, man - you may think that's the case, but I don't trust those guys any farther than I can spit.  Too many tea leaves say differently than what you're saying.  Dog hasn't died or any of that stuff - just plain don't trust the U.S. Govt and it's minions.  They scare the hell out of me.

Tue, 02/26/2013 - 15:28 | 3278580 Z'
Z&#039;'s picture

I am losing faith that the opposition to proper monetary policy will ever understand that economics is a science, and with the rigor of a science, determinations are made for the betterment of our society.

The 'rigor of a science' means that one actually considers alternatives that are in opposition to the theory in question.  By applying opposing pressure to a given theory, legitimacy prevails as challenged by the data itself.  A bunch of self-congratulatory bureaucrats surrounding themselves with like-minded sycophants is not scientific rigor.  Nor is using 'managed data' designed to influence outcomes.

A lot of you are just angry with your lives. Maybe you lost your job, or fell out of love with a partner, ...

Congratulations for tuning into that anger... too bad you choose to ignore your role in guiding policy that is designed as a 'heads I win, tails you lose' for the citizens you so condescendingly dismiss.  To reject this anger as personal baggage is to ignore at your peril what is simmering beneath the surface.  In your arrogance you presume to know what is best for everyone, with a myopic view that really suits your own bloated ego.  You seek to create rules, such as "retail investors have no place owning gold," and you implicitly or explicitly exempt your cronies (institutional investors, Apple, Intel).  You don't seek to level the playing field, but to control it for your own gratification.

...but whatever it is, please understand that there is a group of people who have your best interests at heart and will do what is right so to put us back on track.

Reading this is just nauseating.  What utter arrogance.  You are truly a hero in your own mind.  You use your connections in the influential "group of people" to set policy based upon a one-sided view, ignoring outcomes for the citizens being ground under the wheels of government policy and force. 

The middle class has been sold a plethora of lies about how working hard, making sacrifices, doing the 'right thing' will bring rewards.  What do we get, but a bunch of inept, cronyist policymakers whom, having screwed the pooch royally, now greedily lick their chops at the latest meal on the plate... the middle class.  Of course, this intention is disguised by labeling us as 'rich', in spite of the fact that once policy has decimated the value of retirement savings, many of us will look forward to a meagre income in our later years despite our willingness to save for the future.  One way or another, through inflation or taxation, our assets will be siphoned to pay for the grandiose schemes of entrenched revolving-door bureaucrats and 'scholars'.

Despite the odds stacked against them by the government/financial circle jerk, a few people are still managing (or at least trying) to scrape together some sort of a secure future through savings and sacrifice.  These people are having roadblocks thrown in their face left and right by policymakers and their 'altruistic' advisors... 'altruistic' not with their own resources but with other people's money and future prospects.  Theft of wealth in any way possible, through inflation and policy decisions that seek to force people into risk assets and away from any possible security (such as your "retail has no place owning gold" idea).

Angry? You bet we are angry.

I will say, it felt good to write that.

Tue, 02/26/2013 - 17:34 | 3279290 OldE_Ant
OldE_Ant's picture

Nice reply Z'.   I will add the following to the circle jerk list.

1)  American Medical Association

2)  Politicians and political parties that reflect the same side of the coin - the vested interests of the lobbiests/corps vs. citizenry.

3)  Education system.  Which really is a propiganda programming system to create stupid slave class.

4)  Almost the entire Scientific establishment who would rather ban, cajole and harass people with new ideas that fall outside of the established and accepted norms rather than explore them in real ways.

Virtually everyone who is a professional in their fields knows that certian elements of actual science involve a form of art.  This is why there are better welders, better scientists, better programmers.  If life was just science everyone would be identically the same because 'art' or creative thought/observation wouldn't produce 'better' anything.   Sometmies this yields to science sometimes it simply can't be explained OR duplicated.    For instance the difference between Steve Jobs and Bill Gates (as well as their products) or Edison and Tesla.

Too many people seem to forget that humans are feeling, subjective beings and not objective, robotic machines.   Some people seem to want a world where everything reduces to black and white and 1's and 0's so they don't have to think too much, or feel anything because all those subjective emotions create loss of control.

What IS control anyway??   The power to transform a human into 'this' (a battery/ala slave).  

I'm sorry but the robotic unfeeling/uncaring science going on in all aspects of human life and society is leading us straight down the path not just to a totalitarian state, but total destruction.   And before someone goes off on a half nut here, realize I have no interest in going to the other side of touchy feely subjective views.  (imo) Science and the seeking of objective verifiable truths and reality IS important, but doing so to the exclusion of how people feel or their 'spirituality' ignores the entire scope of what being human is.

Tue, 02/26/2013 - 17:45 | 3279340 Bandit und Buster
Bandit und Buster's picture

"please understand that there is a group of people who have your best interests at heart and will do what is right so to put us back on track."

<Dear Goy, Please understand that there is a group of jews who have our best interest at heart and will do what is right to put US back on track (for world domination).  >

"In this New World Order the children of Israel will furnish all the leaders without encountering opposition. The Governments of the different peoples forming the world republic will fall without difficulty into the hands of the Jews. It will then be possible for the Jewish rulers to abolish private property and everywhere to make use of the resources of the state. Thus will the promise of the Talmud be fulfilled, in which is said that when the Messianic time is come, the Jews will have all the property of the whole world in their hands."  — Baruch Levy, Letter to Karl Marx, 'La Revue de Paris', p.574, June 1, 1928


Tue, 02/26/2013 - 13:01 | 3278070 Mi Naem
Mi Naem's picture

I see Bernanke stopped talking - the S&P is climbing again.  And look at PM's bounce! 


Tue, 02/26/2013 - 14:55 | 3278509 dontgoforit
dontgoforit's picture

Might be chippy, not frothy by the bell.  In any event, it's merely a bounce.  It's gonna close down around 200 tomorrow, bounce again Thursday/Friday and fall into remission on Monday 3-3-13 by about 90 more.  No bout adout it, we're headed down again.  Soros picks up $300-400 million on this sequester-ridden POS market.

Tue, 02/26/2013 - 13:09 | 3278096 hairball48
hairball48's picture

Thanks for the summary. I watched for a while live. After 5 minutes of his lying bullshit Bernanke made me want to rip my hair out. I had to turn him off.

Tue, 02/26/2013 - 13:18 | 3278103 Mercury
Mercury's picture

Bernanke downplays costs of easing
2....Bernanke acknowledges that a long period of low rates could encourage excessive risk-taking, but concludes that the potential costs outweigh the benefits of promoting a stronger recovery and more rapid job creation.

Uh...don't you have that backwards Monsieur SocGen?

Bernanke believes that the benefits of low rates outweigh the costs so he's pressing forward with more cowbell.

...or did Ben slip on a Freud? I wasn't watching.

Tue, 02/26/2013 - 13:21 | 3278150 eclectic syncretist
eclectic syncretist's picture

If this is what he calls a recovery I'd hate to see a depression!

Tue, 02/26/2013 - 13:14 | 3278120 Edward Fiatski
Edward Fiatski's picture


Tue, 02/26/2013 - 13:25 | 3278166 T-NUTZ
T-NUTZ's picture

sub prime is contained BITCHEZ!

Tue, 02/26/2013 - 13:28 | 3278183 surfsup
surfsup's picture

I tend to think William Banzai will pick up on the term "Frothiness" and venture forth into some illustrative madness relating there to --->

May the froth be with you

Tue, 02/26/2013 - 13:35 | 3278208 yogibear
yogibear's picture

Germany wants their gold because their fearful the US will natinalize the gold and just take it.

A warning to those with gold in the US.


Tue, 02/26/2013 - 14:20 | 3278390 helping_friendl...
helping_friendly_book's picture

The exact purpose for the creation of PM ETFs like GLD.

Great Idea! Let's concentrate all the gold in one place so the frbny can confiscate it and, again, lower it into their vaults.

'droids  need to sell their shares of GLD and take that boating trip real soon!

Tue, 02/26/2013 - 14:52 | 3278494 dontgoforit
dontgoforit's picture

They may have been unsure that it was still there at all.

Tue, 02/26/2013 - 15:02 | 3278527 Panafrican Funk...
Panafrican Funktron Robot's picture

The government can nationalize any asset.  Including your house.  That's actually more likely.  Who do you think owns or guarantees the vast majority of home mortgages?  

Tue, 02/26/2013 - 13:54 | 3278285 Meat Hammer
Meat Hammer's picture

One thing is certain: Uncle Ben doesn't cheat on his wife.  He's a terrible liar and would've been caught by now.

Tue, 02/26/2013 - 14:22 | 3278400 Mercury
Mercury's picture

Actually he did but they had a deal.

Tue, 02/26/2013 - 14:23 | 3278396 JR
JR's picture

The economy is not in sync with the Fed. Bernanke, no matter what he does now, is digging himself deeper into a hole. It’s too big now; he can't recover.

And he doesn’t have the politics down.

That question from Shelby says it all; it says you are in over your head. And Bernanke replies, Japan was worse!

Just because Bernanke says the opposite doesn’t mean that the bankers aren’t in deep crisis. And just because he keeps digging the same hole deeper doesn’t mean he knows how to pull out of it.

The stock market is going to drop heavily, IMO, soon; all the numbers are working against it. Bernanke’s testimony substantiates it; the only thing he's counting on to save the system a few days more is to hold the market up; and everything he’s saying is fashioned to do that, to try to keep the investors in the market.

But the economy is too far down for them to recover it.

In short, everything I read here recapped by SocGen is just a filthy lie. The things that Bernanke says they didn’t do, they did. The things he says don’t matter, matter. The things he says are going to happen, don’t happen. Every step he’s taken, is a step that has taken the economy down. He’s developed a position from which he can’t recover.

Tue, 02/26/2013 - 14:50 | 3278485 dontgoforit
dontgoforit's picture

His explanations are like Obama's.  If you hate blue you say you love the sky; if you hate shit, you say you love your horse.  Same old shell game - but the stakes, OMG, are so high you can't see the top from here or from where he, Bernanke, sits.  What a house of cards.  A ballon blown up with other peoples gas - and oh, what a stinker it's gonna be when it deflates.

Tue, 02/26/2013 - 16:51 | 3279059 Village Smithy
Village Smithy's picture

Watching him I felt like he had no grasp of the obvious consequences of manipulating the market, that being when you stop the whole world will stop with you. He thinks he is dealing with numbers that can be adjusted up or down but in reality it's sentiment that he is messing with and it is controlled with a switch. It's 'Fed In or Fed Out" it's on or off, it can't be adjusted or "feathered". When they begin to unwind, the direction that things will go is well understood and the stampede to the exit will be epic.

Tue, 02/26/2013 - 18:20 | 3279481 Bandit und Buster
Bandit und Buster's picture

Village Smithy wrote:

Watching him I felt like he had no grasp of the obvious consequences of manipulating the market

COME ON PEOPLE!!  Wake UP! These LIARS are exactly THAT! LIARS!&nbsp; Most people here on ZH seem to think this is all about ignorance in government! Wake UP! They are the wolves and we are supposed to be the sheep. That is their perspective... pay attention. You don't even have to 'read between the lines'... They have spelled it all out for us but most have been too busy watching the f***ing circus and jew hollywood productions for our 'Entertainment' to seek out the reality!&nbsp;</p><p>Bernake and the rest of the duel citizens in DC are laughing their asses off at the ignorant 'goy'

Read: Synagogue Rising at www.synagogue

Read: 'The Protocols':"></a>&nbsp;</p><p>

These 'people' really believe this shit they are pushing and lying about to the so-called goy! This is NOT a game, this is NOT a drill...this is for real

"Our race is the Master Race. We are divine gods on this planet. We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best. Other races are considered as human excrement. Our destiny is to rule over the inferior races. Our earthly kingdom will be ruled by our leader with a rod of iron. The masses will lick our feet and serve us as our slaves."
— Israeli Prime Minister Menechem Begin

"The governments of the peoples included in this world republic, with the aid of the victorious proletariat, all will fall without difficulty into Jewish hands. Private property will then be strangled by the Jewish directors, who will administer the state patrimony everywhere. Thus the promise of the Talmud will be fulfilled, that is, the promise that the Jews, at the arrival of the Messiah, will possess the key to the wealth of all the peoples of the earth." - Baruch Levy, in a letter to Karl Marx, published in the Rothschild controlled La Revue de Paris, June 1, 1928.

"Use the courts, use the judges, use the constitution

of the country, use its medical  societies and its laws to

further our ends. Do not stint in your labor in this direction.

And when  you have succeeded you will discover that you can now

effect your own legislation at will and  you can, by careful

organization, by constant campaigns about the terrors of

society, by pretense  as to your effectiveness, make the

capitalist himself, by his own appropriation, finance a large

portion of the quiet Communist conquest of that nation."

(Address of the Jew Laventria Beria,  The Communist Textbook on

Psychopolitics, page 8).


Tue, 02/26/2013 - 16:25 | 3278923 PAWNMAN
PAWNMAN's picture

Had to love when Old Ben proclaimed himself as having "the best inflation record of any Central Banker in history" WTF?!? Having a juiced CPI definitely helps in that regard. The Senators are all to ignorant to call him out on that one. Bring back Ron Paul!

Wed, 02/27/2013 - 01:48 | 3280889 polo007
polo007's picture

The Bernanke Reflation

Naturally, the Fed and its most vocal constituencies -- Wall Street and politicians -- see nothing much to worry about. Wall Street sees a reflation as a way to ease its credit problems, as price increases ease debt burdens and perhaps reflate housing values. Congress and the White House see a way to perhaps avoid a near-term recession, which might get them past the election.

As for the Fed, its Governors are dusting off their favorite intellectual justifications. We are told that inflation isn't as bad as it seems because "core inflation" -- which excludes food and energy prices -- isn't rising as fast as the consumer price index. However, food and energy are what most Americans are having to spend ever more of their paycheck to buy. Thus the Bernanke reflation is in part self-refuting even as a short-term recession antidote, because it robs consumers of some of their discretionary income just when the economy needs it.

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