This page has been archived and commenting is disabled.
Rebutting Bernanke’s Defense Of Himself
Submitted by Larry Larry
QIRP Does Not Work And Rebutting Bernanke’s Defense Of Himself
I refer to the combination of QE and ZIRP as QIRP. Both happened concurrently for the most part. It is hard to dis-aggregate the effect of one from the other. ZIRP has its impact from a mechanical perspective. QE has its impact from a psychological perspective – investors believe it drives asset prices up (primarily stocks), so investors then drive up asset prices.
Regardless, at this point the data is in. Asset prices have inflated (and systematic risk as well), but the economy has not. The economy has also missed every forecast the Fed had for it along the way when these policies were implemented. Further, QIRP is not working in Japan, even with the government buying equities. IF QIRP was going to increase inflation, Japan should be the place where it should at least create some inflation as they are huge net importers of commodities.
Consider the following statement from a prominent economist: “Japanese companies held Y236t or $2.0t of cash in 4Q — the same as the US corporate cash. Given continued increases in inflation expectations, it’s somewhat surprising that cash holdings by companies are still increasing.”
This is a very outdated notion that increased inflation expectations drive investment, especially if inflation is going from 0% to 2%. Frankly from any level a few % point change in inflation expectations is NOT enough to scare a business into an investment they wouldn’t otherwise make. Further as it pertains to the U.S., companies are holding cash as a matter of strategy — tax avoidance (loopholes re foreign tax dodges and other still not fixed), buybacks, and acquisitions, especially defensive acquisitions.
- A little inflation is not the panacea for our economic problems and the Fed and others are over-focused on this notion and use it as an excuse for extreme policy flexibility.
With regard to buybacks, I think corporates are now cash-flow negative after dividends and buy-backs are taken into account despite record profits and relatively modest capex. Business strategy and society has changed. Economic policy that may have worked 50 years ago doesn’t necessarily work today, for a variety of reasons across a variety of behaviors (buybacks superceding CAPEX for example). Further when markets expect the Fed to behave a certain way because they have become conditioned to believe it will, the Fed’s actions are already baked in and therefore less meaningful (ergo when used to drugs, drugs no longer help as much). Also as long as end-market consumer demand remains weak (i.e., 28 qtr annualized growth of 1.4% is unprecedentedly weak), companies are not going to expand capacity. This is a classic accelerator effect in a non-accelerating demand climate.
Keynes himself would not advocate what a lot of “Keynsians” view as proper policy today. His views (whether right or wrong) have been greatly distorted and they have morphed into something else in practice in today’s economy.
The focus on increasing inflation is overdone, outdated, myopic, and an excuse to take experimental policy action and stretch the Fed mandate (locally and globally). I wrote this on the subject previously.
Further now that it appears QIRP has been much less effective than anticipated for the economy, while increasing systematic risk, which makes it a net failure, Bernanke has taken to the blogosphere with transparent attempts to defend his decisions and legacy. Alan Greenspan seemed to often try and defend his legacy as well after his term as Fed chair ended.
- People only need to try and defend their legacy when they are insecure about it. I never noticed Paul Volcker trying to defend his legacy – the results of his decisions were pretty clear.
Let me address a few things Bernanke has said in his recent blog posts:
“Although the recovery has not been as fast as hoped—in part because of “headwinds” arising from fiscal policy, the after-effects of the financial crisis, and other factors…”
Bernanke is saying he was right about everything, but everyone and everything else screwed it up. Hmmm. People that never admit they were wrong, blame others and other factors they didn’t consider but should have, never learn from their mistakes, and don’t evolve into being better at what they do. Janet Yellen fits this mold as well.
“The bottom line is that large increases in the short-term rate based on financial stability considerations alone would involve costs that well exceed the benefits……Initially, detractors focused on the supposed inflation risks of such policies. As time has passed with no sign of inflation, that critique now looks rather threadbare”
Makes sense, provided you assume, as the model he references does, that rate reductions have big effects on credit growth and economic growth. What if the effects on credit and economic growth were smaller than in the model? QE at least did not cause the credit growth that it was intended to. The increased money supply just ended up as excess reserves and the velocity of money slowed. That is why it wasn’t inflationary. Bernanke is now taking a victory lap because QE didn’t cause inflation. But that is only because QE didn’t do what he intended it to do. Then what if the costs (systemic risk) are greater than the model assumes? The costs of the last 2 bubbles blowing up was incalculably large. These models are all garbage in, garbage out. In my experience the Fed’s models recently appear to be good at one thing – being wrong!!!!
“If you asked the person in the street, “Why are interest rates so low?”, he or she would likely answer that the Fed is keeping them low. That’s true only in a very narrow sense. The Fed does, of course, set the benchmark nominal short-term interest rate. The Fed’s policies are also the primary determinant of inflation and inflation expectations over the longer term, and inflation trends affect interest rates, as the figure above shows. But what matters most for the economy is the real, or inflation-adjusted, interest rate (the market, or nominal, interest rate minus the inflation rate). The real interest rate is most relevant for capital investment decisions, for example. The Fed’s ability to affect real rates of return, especially longer-term real rates, is transitory and limited. Except in the short run, real interest rates are determined by a wide range of economic factors, including prospects for economic growth—not by the Fed…The Fed’s actions determine the money supply and thus short-term interest rates.”
BUT this is what he said on August 31, 2012 at that year’s Jackson Hole conference:
- “Generally, this research finds that the Federal Reserve’s large-scale purchases have significantly lowered long-term Treasury yields…
The $600 billion in Treasury purchases under the second LSAP program has been credited with lowering 10-year yields by an additional 15 to 45 basis points. Three studies considering the cumulative influence of all the Federal Reserve’s asset purchases, including those made under the MEP, found total effects between 80 and 120 basis points on the 10-year Treasury yield. These effects are economically meaningful. Importantly, the effects of LSAPs do not appear to be confined to longer-term Treasury yields. Notably, LSAPs have been found to be associated with significant declines in the yields on both corporate bonds and MBS… “
Then Bernanke also stated:
“This sounds very textbook-y, but failure to understand this point has led to some confused critiques of Fed policy. When I was chairman, more than one legislator accused me and my colleagues on the Fed’s policy-setting Federal Open Market Committee of “throwing seniors under the bus” (to use the words of one senator) by keeping interest rates low. The legislators were concerned about retirees living off their savings and able to obtain only very low rates of return on those savings.I was concerned about those seniors as well. But if the goal was for retirees to enjoy sustainably higher real returns, then the Fed’s raising interest rates prematurely would have been exactly the wrong thing to do. In the weak (but recovering) economy of the past few years, all indications are that the equilibrium real interest rate has been exceptionally low, probably negative.”
What a load of garbage. It is well documented seniors face a higher rate of inflation than the average person (medical costs, etc.). The inflation seniors are facing is now running north of the interest rates they can earn on the typical conservative investment seniors like to make. Therefore the real rates of return seniors are earning are now negative. Probably the worst they have ever been for seniors. But he has the nerve to claim his policy was good for seniors. All policies have upsides and downsides, but in Bernanke’s view apparently his policies have no downside for anyone. I have no idea how lower interest rates, with the intent of generating higher rates of inflation can be good for the real rates of return seniors and other savers generate. Further, for people holding a fair bit of cash, as a lot of seniors do, there is probably no better case than high rates and deflation. Money can be put to work earning great returns, while the cost of everything drops. For the not working (seniors) savings class, this is a great situation. Granted it probably isn’t so good for everyone else. But Bernanke seems to think that what he did (which didn’t work anyway) was somehow good for everyone, including seniors.
My advice to Ben Bernanke is simple. If you consider yourself a public servant, spend less time trying to concoct ways to defend your legacy, and spend more time on what you did that didn’t work, what can be learned from it, and what current policy makers can change and do better.
Here is a theoretical title to a Bernanke blog post that I would like to read, but don’t think will ever get wrriten “Things I was wrong about, what I learned, and what the Fed should do differently going forward.”
»
- 12195 reads
- Printer-friendly version
- Send to friend
- advertisements -
You have the right to shut the hell up Ben.
Cause everyone knows you lied like hell under oath.
Of couse he did but to him he did the "right thing"........HE'S a PSYCHOPATH
a professor professes, he does not CONfess.
"moral courage to do what is necessary" -- Remember that when we are taking their fucking heads...
the thing to worry about is not Bernanke, per se, but the string of "appointed" Fed chairs and governors. they all have one most important job qualification, and that is their ethnicity. it should be foremost in every article on the subject. we need only look to the former israeli central bank chief, now the #2 mic at our fed, as proof of this assertion.
Why the ad hominem attack on Jewish folks, Bob?
Because you're unable to construct a principled critique of Bernanke or the Fed.
That's sad, given the utter failure of central banks during the crisis.
look up ad hominem. i simply stated fact. when the short list of candidates for Fed chair, with Yellen included, was discussed, 5 of 6 were jewish. would the country be tolerant of a monopoly of mormons as fed chief? would tolerance of a fundamentalist christian as treasury secretary be observed? the current one is an orthodox jew, yet nobody peeps. are jews the only decent economists, or do they have a lock on the jobs? btw, my 2 favorite authors are jewish, and i care about many individual jewish people. look up ad hominem please.
What the author fails to realize is that Ben actually did a great job. The disconnect here is that the author thinks that Ben's job was to stabilize the economy, or some such nonsense. Ben's job was to make sure that huge sums of money made it to specific institutions - under the control of specific individuals. In other words, his job was to make certain, specific, insanely wealthy groups and individuals even more wealthy - that's it. Everything else is illusion/bs for the peasants. It still surprises me to see that so many thinking adults are unable to reach this simple and obvious conclusion.
indeed. it seems zerohedge is rife with articles which pretty much say, 'central banks are cool, but only when they're run 'correctly''. truth is, central banks aren't cool to begin with. competing currencies and non-centralized banking for the win!
It's still politically correct to blame certain individuals at central banks, like this particular article does - e.g., "Jim Yellnanke did a bad job." You can be a member of the officially credentialed economist class across the spectrum - Keynesian, Monetarist, neo-classicist, supply-sider, Marxist - and criticize without fear of professional or academic reprisal.
On the other hand, it's not politically correct to blame central banking itself as an institution - e.g., "The Federal Reserve must be destroyed" (http://www.zerohedge.com/news/2015-03-21/federal-reserve-bank-must-be-de...). This type of criticism is generally only made by Austrians, Ellen Brown-type Greenbackers, the new wave of crypto-currency-anarchists, and other libertarian-oriented types.
The first group's defense of bad economies is the "Absent-Minded Professor" theory - "Jim Yellnanke is really smart, but even he wasn't good enough to save us."
The second group's accusation of bad economies is the "Lizard-Man" theory - "Jim Yellnanke is a total reptilian puppet of the bankster cabal, and despite outward appearances, accomplished exactly what was intended, using the central bank was his primary tool."
"Never attribute to malice that which is adequately explained by stupidity."
So, malice or stupidity? Which side of Hanlon's Razor do you fall on?
“Already the principle banks, the stock exchanges throughout the world, the loans to all governments are in our hands.
“The other great power is the press. By ceaselessly repeating certain ideas, the press in the end makes them considered as truths. The theater renders similar services, every where theater and press follow our directives.
By an indefatigable campaign in favor of the democratic form of government, we will divide the Gentiles amongst themselves in political parties, we shall thus destroy the unity of their nations, we will sow the seeds of discord.
Powerless they will have to accept the laws of our bank, always united, always devoted to our cause.” Rabbi Rzeichorn speech in Prague – 1865
Zero Hedgers want to have their cake and eat it too. They want to retain their sense of moral indignation toward Bernanke and the Fed, but they also don't want the Fed to stop debasing the currency, either.
Given the choice between stopping the endless QEs for the benefit of the country or continuing them for the benefit of their gold pocketbook, Zeroes opt for the latter, but also have the temerity to bitch about it.
i'm sure you invest in one of those morally responsible mutual funds your own self.
Ben Bernanke is an incompetent, sociopathic, narcissistic, egomaniac. He lied to congress, he lied to those he represented, and he lies today.
He has a problem and it's called "living a lie".
Irony is when he dies, he will still be known as a liar. The guy is simply one sad specimen.
Yes. But rich as hell and a hero among his clique.
Bernank and his ethnic hoard are ok with the lies because the sheep are'nt in thier clique. Just like the muzzies when it boils down, they have an utter contempt for those outside their religion.
Now if that is not a Strawman Argument...
I never bitched about Bernanke stopping QE.
I am pissed off that he STARTED IT in the first place. Gold is an INSURANCE POLICY against his destructive and treasonous actions.. I am ALSO PISSED THAT INTEREST RATES WERE NOT RAISED., I am still pissed that Yellen has not done that.
Raise those Interest Rates.
If it implodes the price of Gold and collapses the S&P 500 then bring it on and let's collapse this fraud.
I wil celebrate the collapse of fraud.
You are a fraud and I am looking forward to the destruction of ALL FRAUD.
That is what we want you immoral, lying, pile of shit. Go and suck your own penis, autofellator.
I don't like to be 'that guy' injecting fact into a feel-based argument, but since we both share antipathy for a large contingent of zerohedge readership (in my case mainly the old fart raegan fanboys known collectively as 'the butthurts'), I am compelled to set you straight before your idiocy is associated with others critical of zerohedgers.
1. Zerohedgers despite all their shortcomings, are not in favour of QE, and call for it's abolishment ad infinitum. On what grounds do you base your spurious claim that any contingent of zerohedge supports QE?
2. QE has not been super dooper awesome for the gold price, and the people who believe correlation equals causation (zomg more than 100% increase in gold price during QE1&2!) should explain to those like myself who are not omniscient regarding the gold market, why the price of gold suffered record losses during QE3.
3. Having cake IS eating it you moron.
That's okay to him, cause Jesus already died for his sins, so anything after that is just gravy.
I wonder if Ben included these quotes of his in his fancy book.
"The Federal Reserve takes responsible lending and consumer protection very seriously. Along with other federal and state agencies, we are responding to the subprime problems on a number of fronts. We are committed to preventing problems from recurring, while still preserving responsible subprime lending." -September 20th, 2007
"The risk of moral hazard must be considered in designing government-backed programs; such programs should not bail out failed investors, as doing so would only encourage excessive risk-taking." 2007
“Importantly, we see no serious broader spillover to banks or thrift institutions from the problems in the subprime market; troubled lenders, for the most part, have not been institutions with federally insured deposits,” May 17th, 2007
His ilk got 6mil Jews killed.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
A true psycho-sociopath who lacks the truth gene and is easily directed...perfect qualities for a fed chairman
What garbage, moral courage would have been actually prosecuting the fucking fraud!!!!
I fart in your direction!
I piss on your fart!
Must not be any Mr. Show fans
The blog post can be titled in five words "Infltion is a hidden tax"
It could his mea culps...not that anyone outside the ZH audience would read nor understand it
"The blog post can be titled in five words "Infltion is a hidden tax" (Inflation)
Awww, we ass-fucked the world for a century...hey give the guy some sympathy. At least he admitted they ASS FUCKED THE WHOLE WORLD FOR A HUNDRED FUCKING YEARS.
His whole family lineage need to be mea culpa-ed by a troop of baboons, at the Rose Bowl, for our pleasure.
hey ho.
Irresponsible Government borrowing is the hidden tax.
The bill is now due.
Raise the Interest Rates, Yellen.
Go ahead. Make my day, Janet.
The great Fed experiment has utterly failed, they can not and will not, EVER, raise rates. All that is left now is to pass down the status quo, they won't even acknowledge anything less.
Mustered the moral courage =simple to decision to save the bankers asses.
"I did what I did because Rothschild told me to."
Blopper = comment with "Rothschild" = tiring
Tiring? Not me.
The house of Rothschild 1934. Full Movie
https://www.youtube.com/watch?v=MqCTvW5URfY
Another anti-Semite exposed.
It's a fact established long ago that the Rothschilds are NOT jews.
To wit: http://www.rense.com/general88/hist.htm
Blopper = comment with "Rothschild" = tiring
What's getting "tiring" here at ZH are trolls who continually complain about "anti semites" and "pro Russia" posters.
Get the fuck out...
Please. People are being sent here from Rense and Stormfront and other hate blogs for the purpose of discrediting this community, and you're too blind to see it.
The Rothschilds were Khazarians that adopted Judaism and put up a Jewish face as a front.
The Jews were just scapegoats all along, used by the Rothschilds as target.
Blopper = comment with "Rothschild" = tiring
You ain't seen nothing yet.
He's going for the quaddrupple-down.
This theory has been entirely discredited by the scientific community:
Hammer, who also co-wrote the first paper that showed modern-day Kohanim are descended from a single male ancestor, calls Elhaik and other Khazarian Hypothesis proponents “outlier folks… who have a minority view that’s not supported scientifically. I think the arguments they make are pretty weak and stretching what we know.”
Read more: http://forward.com/articles/175912/jews-a-race-genetic-theory-comes-under-fierce-atta/?p=all#ixzz3WpwwZH00
Come on dude, Psychopaths are never wrong.
"courage would have been actually prosecuting the fucking fraud!!!!"
With Bernanke and Dudley wearing an orange jumpsuit in shackles would have been justice.
Bernanke's memoirs more accurately titled: "How I burned down the global economy and destroyed capitalism in the West."
It took a lot of courage to print out of thin air, why is everybody being so hard on this smug asshole?
We might have found a new MDB...
I'm more convinced than ever that the next crash is triggered by a real estate collapse triggered by millions of seniors finding themselves unable to continue to maintain an independent household after years of negative savings.
Whom the gods wish to destroy, they praise. Bernanke, economic god pretender, praises his own courage.
The only thing a "little inflation" is good for is .gov and those closest to the printing presses. For everybody else it's a tax of the most insidious kind. Oh yeah..... Fuck you Bernank!
I'm still trying to understand how the smartest guy in the world, student of Great Depression, Time man of the year, with the courage to act , just quietly left out the backdoor ....
Had he not pocketed the millions, he would not have left so quietly.
"Bernanke is saying he was right about everything, but everyone and everything else screwed it up."
In a way, the Bernank is partially correct, US CONgress owns fiscal policy, but by bailing out WS, the Bernank gave cover for the Fiscal policy owners, CONgress to do nothing, or even worse, to do the wrong thing.
Therefore the whole solution of the FED and the CONgress in conjunction is the real problem. The whole solution operates like co-enabling drug addicts each buying drugs for the others habit.
if you hated qirp you're really going to hate the next round of bailouts and tender nirpleness
The hairs on my dog's ass-hole quivered at those new nomenclatures....
He farts in your general direction.....
i thought you were your dog's asshole lulz
Ever notice Bernanke has an evil smile to boot. He's scum.
Not really. Ever notice how ZH always posts the most un-flattering and un-complimentary photos of those it is deriding?
Tell us all of your under-bridge life. I'm genuinely curious as to how you get broadband in there.
LOL
when I see anyone or site, actually propose it was "stupidity" or "ignorance".. well.. I can only LoL
this is BAKED INTO THE SYSTEM
Its a rational, logical, predictable exercise.. when private interests manage and control a global monetary system
duh
P < P + I
The only chance of Ben's admitting he was wrong---or rather that he knew exactly what he was doing and simply didn't care who got hurt---that is when Ben finally gets sent to death row for aiding and abetting enemies of the Uinted States, and has to make a big show of finding Jesus or his Jewish roots and acting contrite, to up his chances of being granted clemency by the revolutionary government. Forgive me for not wishing him luck if it ever comes to that.
More likely, writing the brief for the prosecution in the case of US v. Benjamin Shalom Bernanke will have to be left to the next generation of economic historians---if our masters condescend to granting the rest of humanity another generation of life before exterminating us.
ben raising rates reminds me of the old challenger joke. what happens when i push this button?
I have to be honest with everyone.
For some time now I do not bother to read anything that Bernanke or Greenspan say or anything written about them.
I have better things to do with my time and calories.
They were disaster and the only thing I ever propose to read with their name in the future is an obituary (although I do not wish them an untimely death because I want them to live long enough to see for themselves the final disaster.)
nature abohrs vacuum
vacuums will be filled with only those so conscience-less, as to be labeled sociopaths. narcissists.
that describes the entirity of any and all "leadership" today.. be it gov, or corp
its all about SCALE. scales are unmanagable today, so, responsibile intelligent people balk at stepping into responsibility of leadership.. thus.. a vacuum, thus.. sociopaths.
simple explainable, predictable human behaviour. its all thre across what honest history you can find, of course most has been rvised, but there is enough to know and see.. how this works.. how this goes...
P < P + I
Psychopathic, narcissistic, sociopath, neurosis,
If you say it loud enough it simply sounds precocious,
Supercalifragilisticexpialidocious!
Bob Woodward refused to write Ben's book.
Send him to prison. Let him get his re-buttal there.
Fuck off and die, Bernank!
It was all Edward Quince's fault.
Ben B.
Mid 80s Saving and Loan crisis and the latest WS Bailout and Gluttony.
That will be the comparison made in the future.
Already been a book about the S&L and the 2008 crashes, as the same thing, through 2012. I forget the title, I bought it and lent it to a guy who disappeared with it. Was a bit boring, but true. All the S&Ls that were saved in 1990 are the same ones that crashed and burned in 2008. Oh wait, I remembered:
http://www.amazon.com/Other-Peoples-Houses-Regulators-Mortgages/dp/0300168985
But more than that, here's the thing, all the banks were effectively nationalized in 1990 because the money market funds disintermediated them (and the Internet has since made everything even worse). It's all been Fed and Treasury handouts since then, complete fraud. I should write a book.
Serial killers tend to enjoy their work, too. Like Ben, many like to go back and visit the defiled and rotting corpses; they are able to summon their own immoral courage in order to re-live their monstrous and undiscovered evil.
The Courage to Act - How fucking dare he? More proof that evil is without bounds. Reminds me Dr. Kevorkian, who was actually a death-obsessed pathologist and a serial killer himself, masquerading as a right to die advocate. Here are Dr. Kevorkian's paintings:
Jack Kevorkian Art Prints
damn it! wtf! I had no idea about those paintings.. kinda looked up to the guy, what he was up too.. Im naturaly in support of a persons's right to choose... but that guy is whack! thanks for posting
Well stated and glad people continue to call BS on these guys, they deserve it.
"Bernanke is saying he was right about everything, but everyone and everything else screwed it up."
So Ben is that full of himself.
Ben wrote in 1988, that QE doesn't work.
Then he wrote a speech in 2002 saying QE is exactly what he would do to create the illusion of inflation.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm
If there's a God in the universe, this man's book will be in full-promotion mode when the Ponzi finally tanks, putting his policies right up against their ultimate results. Hopefully, people will be smart enough to put two and two together, and the title "Courage to Act" will take on a different meaning than the author intended...
"People only need to try and defend their legacy when they are insecure about it."
Ben knows what is coming and doesn't want any of his blame for it.
Well when you have erroreneous economic theory, you tend to be a fuck up all the time, and well all your life. Ben Bernanke's views on The Great Depression, and what should of been done (which mimics Milton Friedman's) is completely wrong. Bernanke has the warped view that the economic bubble is not bad, it's growth in his view, it's the bust that must be prevented, which of course leads to a bigger systemic bubble of large proportions. It takes courage to let a recession to happen, or even a depression, which is a natural market cleansing process of what is wrong in the economy. Recessions occur because the the market is off track, when you fight a recession with easy money policies and inflation, you don't make the market healthy, the market needs to clear the bad activities in the economy that simply doesn't work.
Fed policies never worked. They claimed they killed the depression and recession with their monetary wizardry, when in fact they destroyed savings in the economy. What is capitalism without capital? When less people save, they become consumers at a macro level. There will be less productive activities and more junior level activities like opening up bars and restaurants. Sure we have a lot of those but not much in growth in industrial capacity, and production of goods? Why, because americans don't save. Savings started to decline since the 1970s, and so forth when there is less savings, consumerism grows, less production of goods occur. It requires savings for entrepreneurs to invest in activities that further create wealth. When you prefer maximum consumption over saving deferred consumption to invest in enhanced consumption the future, the economy experiences little to no growth, even stagnates. And monetary policy of the US has been that of easy money.
A economy is not a car and interest rates are not a gas peddle. You don't simply press the gas peddle and expect the economy to boom and become productive. That's not what interest rates are in a free market economy, but central planners think that interest rate policy is a gas peddle, which shows you what kind of discipline they practice, which is fundamentally not free market at all. Just central planning like any other central planner, even from the side of Soviet Union central planning. Modern mainstream economics really has no clue what the purpose and relationship of interest rates are. Monetarism doesn't have any real cohesive theory about it, and sure as hell Keynesianism doesn't even address it instead concentrating on policies to encourage maximum consumption. Whether they practice Keynesianism the way Keynes himself would of practiced, doesn't really matter, he had no clue what interest rates are for in a economy other than a gas peddle. He held the same error in viewing interest rates just as modern maintstream economic theory which unfortunately persists all over the world.
Bernanke can't defend himself or his colleagues, because they don't know what they are really doing. They act like they do, but look at all the uncharted territories of multiple QEs, and Operation Twist and possibly even more. They don't know what they are doing, because their theories are wrong from the ground up. Hindsight is 20/20, if history is the best judge, these people don't know what they are doing. It's foolish to think a central planner can guide a complex economy. A real economist would simply acknowledge defeat in that respect.
“When the economic well-being of our 'One percent Elite' demanded a strong and creative response, my colleagues at Goldman Sachs, corrupt SEC policymakers and staff alike, mustered the criminal courage to do whatever was necessary, to rape, pillage and plunder all that was still left of the US after Lehman 2008.
I am grateful to all who helped me fuck the US Economy via QE and ZIRP.” Ben S. Bernanke
there Bernanke, I translated the true meaning of what you did...
not your ficticious fanciful hopeum dreamworld of hollywood makebelieve -
just the real world.
Fuck you Bernanke!
WR;)
Okay ... so I had to throw a bunch of Seniors under the Bus to save Goldman, AIG, and the other Wall Street banking Oligarchs - so sue me!!!!!.
RON PAUL: DO YOU CONSIDER GOLD TO BE MONEY?
BERNANKE: NO
RON PAUL: THEN WHY DO CENTRAL BANKS HOLD IT?
BERNANKE: TRADITION
"tradition" wtf hahahahaaha... The Youtube video of this exchange is pretty embarrassing to Bernanke. You guys gotta view it.
Oy vey! "Dear God, you made many, many poor people.
I realize, of course, that it's no shame to be poor.
But it's no great honor either!
So, what would have been so terrible if I had a small fortune?"
If I were a rich man,
ya ba dibba dibba dibba dibba dibba dibba dum.
All day long I'd biddy biddy bum.
If I were a wealthy man.
I wouldn't have to work hard.
ya ba dibba dibba dibba dibba dibba dibba dum.
If I were a biddy biddy rich,
Yidle-diddle-didle-didle man.
I'd build a big tall house with rooms by the dozen,
Right in the middle of the town.
A fine tin roof with real wooden floors below.
There would be one long staircase just going up,
And one even longer coming down,
And one more leading nowhere, just for show.
I'd fill my yard with chicks and turkeys and geese and ducks
For the town to see and hear.
squawking just as merrily as they can
And each loud "cheep" and "swaqwk" and "honk" and "quack"
Would land like a trumpet on the ear,
As if to say "Here lives a wealthy man."
If I were a rich man,
ya ba dibba dibba dibba dibba dibba dibba dum
All day long I'd biddy biddy bum.
If I were a wealthy man.
I wouldn't have to work hard.
ya ba dibba dibba dibba dibba dibba dibba dum
If I were a biddy biddy rich,
Yidle-diddle-didle-didle man.
I see my wife, my Golde, looking like a rich man's wife
With a proper double-chin.
Supervising meals to her heart's delight.
I see her putting on airs and strutting like a peacock.
Oy, what a happy mood she's in.
Screaming at the servants, day and night.
The most important men in town would come to fawn on me!
They would ask me to advise them,
Like a Solomon the Wise.
"If you please, Reb Tevye..."
"Pardon me, Reb Tevye..."
Posing problems that would cross a rabbi's eyes!
And it won't make one bit of difference if I answer right or wrong.
When you're rich, they think you really know!
If I were rich, I'd have the time that I lack
To sit in the synagogue and pray.
And maybe have a seat by the Eastern wall.
And I'd discuss the holy books with the learned men, several hours every day.
That would be the sweetest thing of all.
If I were a rich man,
ya ba dibba dibba dibba dibba dibba dibba dum.
All day long I'd biddy biddy bum.
If I were a wealthy man.
I wouldn't have to work hard.
ya ba dibba dibba dibba dibba dibba dibba dum.
If I were a biddy biddy rich,
Yidle-diddle-didle-didle man.
Qualitative Easing Exceeding Reasonable Proportions - QuEERP.
Hey Berasshole, who cares about your legacy? When you croak, unless they have a 24 hour guard over your grave the whole world is going to take turns pissing on your grave. Your grave will be the toilet for the world and all the people you fucked over. In the end you're going to be pissed on you piece of shit.
and we should get ready to piss on Rbt. Rubin's grave and the jerks in the US Congress who overturned Glass-Steagall - Phil Gramm, Jim Leach, Tom. Bliley
I will find him and I will piss on his grave. I don't care if I'm arrested, I will piss on this fucking worthless cunt along with Geithner
These are the words our great grandchildren will read in the history books of the future. Lies, lies and more lies. Very telling as to the stories we've been raised to believe as true.....
The Fed's (The Bernak/Yellen/Greenspan, etc) business model is very simple.
Debt slavery.
Money printing is debt printing and the more debt pumped out the more control these Beasts can assert unto a People, be it Greece, Ukraine or the USSA.
Not unlike Building 7, at some point the "smartest guys in the room" will see the upside to "pull it."
Make sure you have some real skills in your portfolio and not just a promise from an inaccessible website.
bury this fool in an unmarked grave
just die
What they don't say is that conscious decisions were made over the years to develop more of the world and create a larger economy, by involving more people in it.
So, the vast majority of the VALUE ADDING labor was moved from the west to the east, first to Japan, then to the 4 tigers and then to China. At each step the total size of markets increased, but the important value adding component moved, leaving economic gaping holes where it had left.
Bernanke knows this. Everyone should know this. The trick then was to try to figure out how to replace value adding activity with non-value-adding activity and still maintain the perception of a good economic level.
To accomplish this, the Fed went into trickery mode and has tried to make US inflation and labor arbitrage look like growth. They failed ... but won't admit it because from a global perspective they have succeeded in conjunction with the rest of the central banks at increasing the size of the total market... which they perceive as a win.
Killing the US and the rest of the west is not really part of the plan, but over time they want to re-set expectations so that the US and the rest of the west accept a set of elitists that benefit from globalization and a slave class that lives off minimum wage work and welfare.
The elite have always hated the middle class. They like peasants begging for work for food. It's taken a while to extinguish the middle class but they are actively working on it. When you have a little money you get a sense of freedom, of choices. They don't like that, never have. They love slaves
Fuck you bernanke. Fuck you hard and then die pigfucker
this a$$hole has been on the higher octave of the public dole - govt 'service' - his whole life, never met a payroll or been long or short so much as a bushel of soybeans.
The people who live in the state now known as "Israel" are NOT BIBLICAL JEWS.
As stated here, they are Khazars. The Khazars are of mostly Russian descent.
The Khazars have successfully co-opted the idea that the so-called "jewish" people living in "Israel" today are God's Chosen People.
That is a lie.
Many Christians are not aware of that.
Today, ONLY Christians are God's Chosen People.
Nonsense. That has been completely debunked by genetic scientists:
"Hammer, who also co-wrote the first paper that showed modern-day Kohanim are descended from a single male ancestor, calls Elhaik and other Khazarian Hypothesis proponents “outlier folks… who have a minority view that’s not supported scientifically. I think the arguments they make are pretty weak and stretching what we know.”
Read more: http://forward.com/articles/175912/jews-a-race-genetic-theory-comes-under-fierce-atta/?p=all#ixzz3WpwwZH00
I saw Bernanke this morning, then I flushed it.
The banksters need to repay us.
"Mr. Bernanke, we are pleased to inform you that your reservation on our guillotine has been confirmed. Don't worry, we will pick you up for the short trip over to it. We'll take care of everything."
You can't please everybody, so you should please the ones who are most likely to kill you first.