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Bernanke On China Power Grab: "All That's Happening Is Congress' Fault"
Back in May of 2013, Ben Bernanke blamed US lawmakers for exerting “substantial drag” on the US economy, even as he and the rest of the FOMC were doing their absolute best to keep things afloat. Bernanke reiterated this in a blog post yesterday, saying that “if fiscal policymakers took more of the responsibility for promoting economic recovery and job creation, monetary policy could be less aggressive.”
Subpar economic growth isn’t the only thing Bernanke blames Congress for. As FT reports, the former Fed chair is out echoing comments from other former US officials regarding the connection between Congressional ineptitude and the founding of the China-led Asian Infrastructure Investment Bank.
Via FT:
Beijing was pushed into launching the Asian Infrastructure Investment Bank by US lawmakers’ refusal to give China greater clout in existing multilateral institutions, Ben Bernanke has said.
“The US Congress is largely at fault for all that’s happening,” the former chairman of the Federal Reserve said in Hong Kong on Tuesday.
America’s legislature blocked a 2010 International Monetary Fund agreement to shift 6 per cent of quota — and voting rights — to emerging economies, which Mr Bernanke believes would have “better reflected the increasing role of China” and other nations.
“The US Congress has not approved it. They should, they haven’t,” Mr Bernanke said. “So I understand why other countries say, ‘well let’s take our marbles and go home’.”
What’s interesting here is the tendency for Americans to view the AIIB as something that was ultimately created by the US — even if only inadvertently.
While it’s true that Washington’s unwillingness to reform the IMF to better reflect the economic clout of its members (indeed, even when an opportunity to get around belligerent lawmakers presented itself, The White House balked because the move would have cost the US its veto) is in part responsible for the establishment not only of the AIIB, but also of the BRICS bank, US arrogance prevents its officials from understanding that part of the reason these new multilateral institutions are appearing is because there is a demand for them in terms of regional infrastructure development.
(From President Xi's Pakistan visit in late April)
Additionally, there’s value in establishing close ties between the world’s emerging powers outside of the rigid structures that exist in post-Bretton Woods multinational structures, as indicated by China’s recent investment in Brazil, which will help the latter ride out a commodities slump and the former jumpstart trade.
In other words, everything does not emanate from a decision someone did or did not make in Washington and until the US realizes this, it will be unable to come to terms with what is an increasingly multipolar world and will continue to see institutions like the AIIB as a threat rather than as a response to world problems that the US and its allies have proven either unable or unwilling to solve.
This mindstate will lead US officials to demean new structures and partnerships which will in turn only serve to undercut US influence further. Case in point:
However, the former Fed chairman played down the practical implications of the AIIB, saying the bank was largely symbolic.
“There’s now a huge amount of private capital flows going in and out of emerging markets, including money that goes into infrastructure projects,” he said.
Mr Bernanke also said too much attention was being focused on the internationalisation of the renminbi, which was as much a matter of “national prestige” as of practical economic value. In reality, he said, the Chinese currency’s share of global reserves was “very tiny” and even its share of trade settlement was “modest”.
(Bernanke speaks in Hong Kong)
Perhaps, but while the US continues to deny the clear global trend towards multipolarity and de-dollarization, China is busy investing hundreds of billions of dollars in countries like Pakistan (where US foreign policy has been notoriously fraught) and Brazil (where China will help construct a railroad over the Andes in order to connect ports in Peru with the Pacific). These are major initiatives unfolding right before Washington’s eyes while the US continues to play politics in a desperate attempt to preserve the last vestiges of a post-war order that no longer exists.
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Shut up Ben. No one takes you seriously anymore. Fool
Unfortunately too many people still do. He's now a schill trying to paint a nice picture of himself for history's sake. Too late Bernank!
Of course it is you yid fuck, and none of yours, correct?
Right Ben you fucking dick head. How could the smartest economist of all time ever be wrong and ever be responsible for anything bad. Fuck You dickwad.
"In reality, he said, the Chinese currency’s share of global reserves was “very tiny” and even its share of trade settlement was “modest”."
So was the dollar a hundred years ago. Give it some time.
I led the Fed as Chairman.
I saved the world.
I brought back the economy from the brink of disaster.
Now, 6 years on, I think I'll.......
....... QUIT?
His leaving says it all.
He's scared shitless of what's coming.
CHICKEN SHIT bearded bitch!!!!
When the rest of the world goes back to a gold money system away from the corrupt and failed paper Ponzi scheme Bernanke was running, that's Congress' fault.
Well, yes, in a way Ben.
Ben,
Let me explain how banking actually works since you don't seem to know, even after over a decade of "on-the-job training" at the Federal Reserve. Bankers gamble with OPM, and seek to offset various risks through RISK TRANSFERENCE (which may or may function as intended if TSHTF). Now look at what you wrote: “There’s now a huge amount of private capital flows going in and out of emerging markets, including money that goes into infrastructure projects.” Where do you think these private bankers are shopping for risk transference? The answer (now) is the US Taxpayer (through the IMF & WBG- where things are generally priced in USD in deference to US veto power). See the problem? Your "private banker" BFFs aren't members of AIIB/BRICS Bank club, so they will have to PAY for access, take actual risk, or be shut out of the market for those projects. Moreover, if they chose either of the first two options, what currency do think the "representatives" of the taxpayers actually assuming liability are going to insist on? Sure as fuck not your brand. Next time, think before committing to words evidence of just what a colossal disaster your "intelligence" and "banking knowledge" has been for the USSA & USD hegemony you were tasked to extend.
Thanks,
Someone who doesn't like bullshit.
Up vote for using "dickwad".
He's just happy it didn't blow up on his watch. Now he can gloat and do whatever he wants. Just like Greenscam.
If Mr. Yellen makes it, (s)he will be doing the same thing.
pods
With liberal progressive democraps, it's always somebody else's fault..... fukem
Dare I say, masterful!
Ok, I will say it "Masterful"
That's priceless!
Would you please stop using my picture to put funny captions underneath? It's starting to annoy me.
LOL, once again you made my day great job ;))
I just hope and wish we could just hurry up and get to those consulsions...
Nothing is ever Bernanke's (or Greenspan's or Yellen's) fault. It's always someone else or some other institution. He deems himself infallible as he successfully destroyed the currency and the global economy.
Denial isn't just a river in Egypt.
I have noticed that all collectivist, no mater what the call themselves, have that problem.
"It did not work because we did not do enough off it"
"It did not work because weren't cooperating"
"It did not work because blah, blah"
It is always the same
Bent BoneFranke looks like a Ricardo Cabeza, if you get what I mean....
Just Moar lies from a habitual liar, lets call it tradition.
The IMF is a weapon. It does not do what it claims it does, and therefore cannot be useful to asian countries. It is political in nature, it has no utility beyond that. But the AIIB is probably also going to be used as a weapon, so its utility as an "investment" vehicle is limited as well. The main thing here is that the AIIB will be a weapon available to swoop in and debt-fuck a foundering country and take it over. It provides another option to these failing countries. Before it was just the IMF. Now they have competition.
Bernanke is a liar, never believe anything he says. He knows and he is lying.
Guess you don't need to print an actual physical dollar bill to pass the buck.
I wish Ben would retire and go away. And that's the nicest thing I can say about him.
At some point in the future I'm expecting these think-tanks to start paying him NOT to speak.
If he says the wrong things - a nail gun may be in his future.
"America’s legislature blocked a 2010 International Monetary Fund agreement to shift 6 per cent of quota — and voting rights — to emerging economies, which Mr Bernanke believes would have “better reflected the increasing role of China” and other nations."
These globalists fuckers just can't give our soverignity away fast enough
Congress should have Porky and Bibi Nut-and-Yahoo give more speeches in front of Congress so they can give endless standing ovations for their bosses.
I can tell he regrets leaving. He can't STFU.
Narcissism. He's beyond humble, as are most people who fix the game then claim credit.
Single nostril blowout at bens feet
He has a point. The Senate and Congress should have passed the law to coin their own money years ago and FUCK THE FED.
How can it be Congress's fault? All they ever do is vote the way their lobbyists tell them to. To be 'at fault' would imply at least a minimum level of intellect or some desire to help the country. Most of Congress has neither.
Bibi and Porky Porkyschenko (real name Waltzman) get 300 standing ovations from Congress when they give a 5 minute speech. Congress knows who their bosses are.
I'm actually blaming the Caucasian baby boomer voting and fiscal influence in the U.S.
Congress did a shit job of picking which lobbyist to serve and how.
Maurice Greenberg and James Cameron's business team know how to work with China so much better than Exxon.
The boomers have all of the money, they decide who gets to be lobbyists with their purchasing power.
Please I'm begging you shut up, go find an island and let the world never hear from you again. Take a hint from Bobby Fisher and just go away. Nobody cares what you think or who you blame. All you did was what you were told. That was to counterfeit money and give it to banks. You did your job now just go away. You're really not that important, and the more you say you did nothing wrong, and it was everyone else's fault, the more people can see that you're just an ordinary run of the mill pathological liar.
Bernanke & Yellen are puppets like Obama of the Banking Cabal.
I would agree that CON-gress is guilty of abdicating its duty to coin money to the FEDRES, and generations, including mine, are guilty of letting it go on.
Would someone please suicide, cyanide, genocide, calcium chloride him...
or stick another dick in his mouth so the fucker can't talk...
Better get longer rope....we're gonna need it.
It's as clear as daylight that O'BarryBushtheYounger kept continuity in the two most important positions in the USSofA political/economic Spectrum with Bernanke and Gates.
Fiddle me Banksterdom & MICboozeNSA.
That's how the Cabal maintain their grip on POWER. The rest is pure theatre.
America's fade from influence in the world to accelerate geometricly.
China pouring money down the rat hole that is Pakistan is nothing but good news for America.
Shillarys Vice Pres maybe? BB can't get enough
If it's so tiny, irrelevant, insignificant then why bring it up Ben you motherfucker? Fuck You Ben and please die soon and in the interim shut your fucking piehole asswipe
On the Titanic its always the fault of those "others"...never of the Captain or his crew.
Explain to me how the guy that oversaw a massive real estate bubble in the U.S. and was clueless even after the implosion started and who was the regulator over a banking system during a time when it levered up into bad debt to astronomical levels without him letting out even a peep of concern is now qualified to pontificate on global financial markets, who should be doing what and what it all means.
It is laughable, though incredibly sad, that he still has a voice that anyone views as credible as he continues to demonstrate his cluelessness almost daily.
Still trying to lie to himself for the feels
Peter Schiff should have knocked this noob's lights out at that cocktail party then done a captain morgan's pose over his limp body. That would have been a picture.
Bullshit.
The world's marginal consumers who became China's marginal customers are the sole reason for China's growth.
China before massive dollar inflows vs China since massive dollar inflows. QED.
Not rocket science, not conspiracy theory, just basic mercantile economics.
Can comment quality go any lower?
To state the obvious: Congress does nothing. They don't write the legislation being passed. They don't read the legislation being passed. Much of the time, the congress critters are not even awake at the time that legislation is being passed.
All they do is try to gather up as many fat checks as they can and shut the hell up, trying to enjoy the ride, while hoping no one takes away the gravy train. The money powers who own the Fed also control Congress and all politicians.
Very sad. Both Congress and Ben were on the dole from the money powers and both pretend that they are important, that they care and that they are independent.
It is a lie.
I wonder if Bernanke and his Japanese American wifey have arguments about whose currency value is going to dive the fastest.
Bernanke knows where BOJ gets it's liquidity for their QE- except that Japan has been a huge lender to the world at 0% interest rates.
Ben is ultimately blaming you, the American schmuck.
Everything is someone elses fault all the time hey Benny?
“George Herbert Walker Bush: ‘ If the American people ever find out what we have done, they would chase us down the street and lynch us.’Expect us,
The American people.
Politicians of yesteryear bought into the Federal Reserve System because it offered "Plausible Deniability"
Brilliant really.
We should dig-up Woodrow Wilsons corpse and Bitch Slap him for being a big PUSSY!!! Then, we should invade the UK and take back all our tax dollars from the royals. Equally Brilliant!
"Politicians of yesteryear bought into the Federal Reserve System",...
and the right to total failure, as the US FED is not afforded (but appears to have been given) any Constitutional protection, that is any-rights more that is afforded to anyone else. Appearances can be deceiving.
Interest rates have to go up.
This and most other problems in the U.S.A. is the fault of the Second Amendment Gun Nuts who let all the rest of the Bill of Rights go, and all the Banks be "robbed" while fondling and stroking their barrels in the Semi-Privacy of their own underwater mortgaged homes.
One of the stupidest comments I have ever read on ZH . . .
He is metaphorically stabbing Congress in the back while screaming "You're hurting me!"
Bernanke is trying to cover his tracks. He knows history will judge him poorly, and he needs someone to blame. Sounds like a President I know.
IMF = IaMFuckked
Its only an instrument of the rich(& cappycabals) to make developing nations go down deep in debt.
Debt == Weapon
Debt has always been a weapon of the rich to exploit the poor laboring class in order to :
(1) Skim all their hard earned money
(2) Keep them in submission
(3) Keep them in poverty
(4) Make them shut their mouth
(5) Use their mouths as parrots
(6) Use them as puppets
(7) When they are useless , destroy them.
But thanks to China & Russia with AIIB & BRICS & possibly gold backed funds , the poor nations will have the alternatives to come out of western slavery.