Bernanke's Speech Decrypted

Tyler Durden's picture

Bernanke's splendiferous defense of all things holy and Central-Bank-like this afternoon has a little for everyone - if you spent the time to listen/read his entire lecture. For those who did not, perhaps the following word-cloud sums up his perspective - and its odd subliminal messaging. The words Gold and Standard appear more times than Central and Bank; the words Policy and Economy are almost equal in number and very close together in this 'randomized' word-cloud; Collateral and Essential appear infrequently but oddly proximate when the random hand of Worldle is applied; the Dollar got its rightful tiny mention; and the Inflation-Deflation debate will rage on - as Inflation slightly outnumbered Deflation but the randomizer did its job and strangely placed Inflation next to Bad and Deflation next to Great. There was no mention of Oz, The PPT, Unicorns, Beard-Trimmer, Ron Paul, or Those-Bloody-Bears-On-YouTube, though the words Panic and Panics were somewhat surprisingly frequently uttered.

Source: Wordle

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dark pools of soros's picture

Ron Paul was pretty smooth on Leno just now


Ron was GREAT! Bernanke stuttured and was nervous tallking about the GOLD standard, anyone notice the ummmmmms?

The Big Ching-aso's picture



If someday I had to take a Fed-Ed college course I should automatically put into a genius class due to ZH affiliation.

RafterManFMJ's picture


Hopefully the course will be part of a history unit.

GetZeeGold's picture



Of's tradition.


neidermeyer's picture

We have received your paperwork and you are pre-enrolled in re-education camp Jeckyl Island , please pack only personal effects such as glasses, all other needs will be provided by us. Our agents will assist you onto the bus momentarily.

ChacoFunFact's picture

Gold backed currency is not the solution.

 A Gold Standard would be an unmitigated disaster. It will lead to an excruciating deflation. Deflation is a horror for debtors, who see their debts and the interest they pay over them grow worse in real terms. And since everybody is complaining of debt so much, we might reconsider making it worse with deflation.

Winston Churchill, who was involved in the reinstatement of the Gold Standard in Britain in the twenties testified to the House of Commons in 1935, when the deflation of the Great Depression had made Gold untenable:
Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan.
Minor fluctuation might well be ignored, but I say quite seriously that this monetary convulsion has now reached a pitch where I am persuaded that the producers of new wealth will not tolerate indefinitely so hideous an oppression. . . . I therefore point to this evil, and to the search for the method’s of remedying it as the first, second and third of all the problems which should command and rivet our thoughts.

Deflation destroys the economy, because people have an incentive to hoard cash, instead of using it for production and consumption.

The Banking Fraternity is well aware of the disastrous deflation that Gold promotes. For instance, the Protocols say in their financial program (Protocol 20): You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible.‘”

--Real Currencies




Here’s how we do it.  The US government, not the fed, issues Debt Free “US notes”, that are legal tender.  The US Treasury then buys back all its pre-existing bonds in the open market with these debt-free notes.  Then they raise the reserve requirement at hometown banks at exactly the same time.  This will remove fractional reserve banking.  The amount of “US notes” in circulation should be held in a tight band where the amount is allowed to increase or decrease as a function of population or similar transparent standard. 


When the US borrows from the Federal Reserve Bank the Federal Reserve Bank only issues money equivalent to the amount of principal requested.  The Fed doesn’t issue money to the Treasury for the interest payments the US government will owe.  So where does the government go to get this additional non printed money to make good on the interest?  By borrowing more.

lineskis's picture

Unless debt is forgiven...

DrStrangelove's picture

Biggest zerohedge style forreign Paul supporter... Stellaconcepts... by far





MUST WATCH!!!!!!!!!!!



STELLACONCEPTS in the building yall

GetZeeGold's picture



Some burned out Aussie stoner calling for silver $25,


Evidently he was passed out the last time silver was at $25.


non_anon's picture

yeah, I've been depressed since 2008

LowProfile's picture

Ah the first of the seven stages.  Been there.  Recently just made it all the way to "acceptance".

Now I'm just happy, puttering around, getting the compound kitted out...

The Big Ching-aso's picture



Decrypted.    I think somebody should be put into a crypt.

TruthInSunshine's picture

I'm not about to try and pine at length in the wake of what is Zh's outstanding breakdown of The Bernank's blathering bullshit, but just did want to mention how absolutely hilarious it was that one of The Bernank's central claims in his propaganda today was that economic/business cycle and banking system crises have been greater in terms of depth and duration during times when the gold standard was used, compared to when it wasn't.

I won't even get into his intentionally leaving out the fact that government safety nets such as FDIC (and many other programs) were in place at times when the gold standard had been abandoned, but just want to say that if anyone doubts that Bernanke is a psychopath and/or sociopath (given my opinion that there's no way he's less than very intelligent), today's speech was the conclusive proof that he's either or both.

r00t61's picture

No, I don't think he's either. 

He's just another ivory-tower academic, knee-deep in his equations and theories.  He's surrounded by other academics and policy wonks who think like he does.  It's groupthink and social norming taken to the nth degree.  There's nothing sinister there.  Just a lot of micro-intelligent, macro-incompetent alchemists.  Probably the same type of brain processes that concluded that the Titanic could never sink, that the Maginot Line was an unbeatable military strategy, that the sun revolved around the earth, that bloodletting/leeching was a useful medical procedure, that the O-ring design on the space shuttle was an acceptable flight risk.

It's not premeditated malice, only blind hubris.

Dimon, Blankfein, et. al, seem much more sociopathic to me.  Especially Hank Paulson.

LowProfile's picture

Those we consider as smart people can still be co-opted, unprincipled, and make stupid mistakes...

Guess we need to raise the bar on what constitutes "smart".

Ignatius's picture

Is it an accident then, or perhaps a stupid mistake, that every new dollar coming into the system comes in as an asset to the banks and a liability to everyone else?  Did he even mention debt and the debt level, or its exponential growth?

Gold is a wealth reserve asset.  That is gold's power.  That is gold's job -- securely store excess purchasing power.

Attacking the limitations of the gold exchange standard as the Bernank did is a diversion from the more important fact that all money comes in as a debt to the private bankers.  This is the privilege that he is protecting.  Governments will always issue excess tickets and undermine any set price in a gold exchange system.  That is human nature and that is the history.  That is the beginning of the confidence con... to first gain your confidence.

TruthInSunshine's picture

According to the DSM-IV, The Bernank arguably meets 4 of the criteria to be deemed sociopathic, whereas only 3 criteria need be met (and he definitely meets 3).

neidermeyer's picture

that the O-ring design on the space shuttle was an acceptable flight risk.

It's not premeditated malice, only blind hubris.


The shuttle booster sections were originally supposed to have a seal containing asbestos ... both our shuttle disasters were caused directly by the EPA ... disaster #1 due to crappy butyl O rings rather than a rolled/folded asbestos fabric , disaster#2 caused by foam using non-cfc propellant ... never had ANY foam problems with the old CFC stuff. Blind Hubris is right ... why pay engineers if you're going to proclaim it's "going to be MY WAY no matter what the consequences because I know CFC's are evil..."

mkkby's picture

Except he works for a private corporation owned by the banks.  Nothing sinister?  Perhaps.  But certainly nothing one millimeter outside their interests.  Ever.

Hard1's picture

Actually the bedtime story says the following, which the FED is clearly failing to do

During a panic, central banks should

lend freely

against good assets

at a penalty interest rate (to discourage excessive use)


Son of Loki's picture

The bedtime story says the CB is a "government agency" and it is actually a private bank I thought owned by private bankers.

Rusty.Shackleford's picture

gold is bad, uuuuuuummmmmmmmkkkkkkk

AllThatGlitters's picture

Look carefully and you will see a clear hidden message:


First Came Gold


Get Gold

sitenine's picture

That's fantastic!  Thank you

LongSoupLine's picture

A deeper message is the word "bank" being pregnant with the word "end"...wonder when it will give birth?

l.hauri's picture

it is good that finally you made it. cloud storage

Unprepared's picture

... and deeper message: End Bank NOW

indygo55's picture

And "People might panic".


sitenine's picture

I put it all together, and I came up with this:


first came gold

collateral essentially

dollar still short-term

cash institutions

fixed world

crisis monetary

war long

inflation bad

recession also

people might panic

exchange currency

get gold

end bank now

Uber Vandal's picture

Giving this a closer look, I came up with:



Think Depression

Unemployment Called Good

Gold Price

Pay Well Failed


Son of Loki's picture

If you play his speech backwards, he says, " is dead..."

I thought it was supposed to say, "Paul is dead"?

sitenine's picture

Bernanke claims to have good assets in exchange for those loans he talks about.  I found that point to be quite laughable.  Solid FED balance sheet?  Toxic maybe?

xtop23's picture

Mark to market then ya fucker !!! 

LowProfile's picture

Well, if you revalue a certain item on the Treasury's balance sheet upwards ~$50k per unit...  No problem!

xtop23's picture

A house in Iceland and a lodge in Switzerland, as well as a plane to shuttle between the two, would be lovely. I think I could stomach that very well indeed tyvm :)

hangemhigh77's picture

Everything Berstooopid said is just a friggin INSULT to my intelligence. This guy is a friggin IDIOT.  How fuckin' DUMB does this guy think we are?  All you have to do is be able to read and you KNOW everything this IDIOT said is all BULLSHIT.  Harvard, Yale, Princeton, are they teaching these assholes at these institutions of higher learning?  I mean everyone who gradutaes from these schools seems to be a fucking lying thieving scumbag.  I would say you could get a guy who's been in prison for 20 years for gang rape, mutilating old ladies and murder and put him together with a graduate from Princeton and you wouldn't be able to tell the difference.

stacking12321's picture

Everything Berstooopid said is just a friggin INSULT to my intelligence.

to what intelligence are you referring?

i detect none

hangemhigh77's picture

Then the only assumption that can be made is that your head, containing whatever gray matter still firing any electrical impulses, must be firmly wedged between your butt cheeks.

Seditious Blasphemer's picture


Harvard, Yale, Princeton, are they teaching these assholes at these institutions of higher learning? I mean everyone who gradutaes from these schools seems to be a fucking lying thieving scumbag.


Self evident facts and answers are self evident and clearly not a coincidence. Also, the fact that the CFR really has had and does have its agents in every last part of the government of the United States of Prozacistan means that while we endlessly analyze the reality we face, they are creating the next reality for us to endlessly analyze, etc., ad infinitum. I refer you to my latest must read, " Battle Hymn: Revelations of the Sinister Plan for a New World Order".



zKeyserSoze's picture

it is biggest heist in history - need perp walks of bankers and govt officials

Clashfan's picture

Every cheap hood strikes a bargain with the world.

Bansters-in-my- feces's picture

And the USA Goverment allow these Criminals to terrorize their citizens...?

Make me fucking puke.

bigkahuna's picture

the US gov't operates at the behest of these criminals.

urbanelf's picture

I've become more inclined to think that, in spite of Bernanke's nervous demeanor, he isn't really all that nervous.  He's just a crappy speaker with some weird mannerisms who's relatively confident about his stupid beliefs. 

Bansters-in-my- feces's picture

The Non Federal "Federal Reserve" are terrorist.

Plain and simple

People even know where they do thier dirty deeds from,and allow it,with the blessing of the President.