Posts Tagged ‘Ben Bernanke’
~Education is the key~rockingjude
“Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.” - Ben Bernanke
“The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving a trail of casualties in your wake.” – Alan Greenspan
There you have it – the wisdom of two Ivy League educated economists who are primarily liable for the death of the American middle class. They now receive $250,000 per speaking engagement from the crooked financial parties their monetary policies benefited; write books to try and whitewash their legacies of failure, fraud, and hubris; and bask in the glow of the corporate mainstream media propaganda storyline of them saving the world from financial Armageddon. Never have two men done so much damage to so many people, so quickly, and are not in a prison cell or swinging from a lamppost. Their crimes make Madoff look like a two bit marijuana dealer.
The self-proclaimed Great Depression “expert” Ben Bernanke peddles pabulum about inflation being too low and posing dire risk to the economy, but is blasé that swelling the Federal Reserve balance sheet debt from $900 billion in 2008 to $4.4 trillion today with his digital printing press poses any systematic risk to the country and its citizens. Either his years in academia have blinded him to the reality of his actions upon the lives of real people living in the real world, or his real constituents have not been the American people, but the Wall Street bankers that pulled his puppet strings over the last eight years.
Global Research, May 15, 2013
US$ dollars have been flooding the financial markets ever since Bernanke launched quantitative easing allegedly to turnaround the US economy. These huge amounts of US$ toilet paper are mainly in financial markets (and in central banks) outside of the United States. A huge chunk is represented as reserves in central banks led by China and Japan.
If truth be told, the real value of the US$ would not be more than a dime and I am being really generous here, as even toilet paper has a value.
That the US dollar is still accepted in the financial markets (specifically by central banks) has nothing to do with it being a reserve currency, but rather that the US$ is backed/supported by the armed might and nuclear blackmail of the US Military-Industrial Complex. The nuclear blackmail of Iran is the best example following Iran’s decision to trade her crude in other currencies and gold instead of the US$ toilet paper.
If the United States were not a military threat and a global bully that can blackmail with impunity the oil exporting countries in the Middle East, the global financial system which hinges on the US$ toilet paper would have collapsed a long time ago.
The issue is why has the US$ not collapsed as it should have by now?
When we apply common sense and logic to the state of affairs, the answer is so simple and it is staring at you.
But, you have not been able to see the obvious because the global mass media, specifically the global financial mass media controlled mainly from London and New York, has created a smokescreen to hide the truth from you.
Let’s analyse the situation in a step by step manner, and apply common sense.
1. The US is the world’s biggest debtor. The biggest creditors are China and Japan, followed by the oil exporting countries in the Middle East. With each passing day, the value of the US$ toilet paper is worth less and less. Like I said earlier, even toilet paper has some intrinsic value. It reaches zero value when everyone has to carry a wheelbarrow of US$ to purchase anything.
2. For the US$ toilet paper creditors, they cannot admit the fact that they have been conned by the global Too Big To Fail Banks (TBTFs) acting in concert with the FED and the Bank of England to accept US$ toilet papers. The central bankers of these countries have a reputation to preserve (not that there is in fact any reputation, for their so-called financial credibility is also part of the scam) and the political leaders that relied on them is in a bigger bind. How can the political leaders be so very stupid to trust these central bankers (who have stashed away in foreign tax havens huge US$ toilet papers as a reward for their complicity). This is the current state of affairs in plain English. They are having sleepless nights worrying if and when the citizens would wise up to this biggest con in history i.e. the promotion and acceptance of fiat currencies, the US$ being the ultimate fiat currency.
Money has no motherland: financiers are
without patriotism and without decency;
their sole object is gain.”
… Napoleon Bonaparte
By Al Holtje
March 14, 2012 in New York City.
When you start talking QUADRILLIONS, something must be wrong. Something has to give. Divide that number by every person on the planet and it equals $206,000. Make the distribution around the world and what would follow? A loaf of bread might cost $3 million. The dollar would be worthless.
Where’s the outrage?
We are, at a crossroads, either we come to terms with reality or face the consequences. The numbers don’t lie. We look, we read, we shrug, we point fingers and life goes on. That will end and soon because the most egregious example of what we have become is government allowing “financiers” as Napoleon put it to undermine our freedom.
Let’s review: The financially engineered derivative bubble now stands at about $1,405,000,000,000 vs. only about $15 trillion in our banking system. Too big to fail bankers have exploited our monetary system for their own personal gain without oversight from the federal government. In the United States … corruption rules pure and simple. The situation now is so serious that once the bubble pops, government will take control and … there go our rights and our freedoms guaranteed by Our Constitution as they will become redefined in what bureaucrats will cite as “in the best interest of the country.”
The bubble bursting process is taking place now in the form of deleveraging forcing a move of these contracts to higher ground by using the Federal Reserve’s influence to guarantee against failure which could happen on an unprecedented scale. Bank America for example, has on its books $75 trillion in contracts, J.P. Morgan, Chase has $79 trillion. Combined, the $159 trillion is ten times the total money in the nation’s banks and incidentally, both banks passed the U.S. Treasury’s stress test. How could that happen? Ben Bernanke, one of the worst guardians of the nation’s money in the history of the Federal Reserve, gave an ok to Bank of America to transfer their $75 trillion in open contracts from their brokerage subsidiary (Merrill Lynch) to the bank thereby making them eligible for FDIC protection. The transfer was clearly illegal and the FDIC objected but, to no avail.
Everybody on Wall Street is talking about the new piece by New York magazine’s Gabriel Sherman, entitled “The End of Wall Street as They Knew It.“
The article argues that Barack Obama killed everything that was joyful about the banking industry through his suffocating Dodd-Frank reform bill, which forced banks to strip themselves of “the pistons that powered their profits: leverage and proprietary trading.”
Having to say goodbye to excess borrowing and casino gambling, the argument goes, has cut into banking profits, leading to extreme decisions like Morgan Stanley’s recent dictum capping cash bonuses at $125,000. In response to that, Sherman quotes an unnamed banker:
“After tax, that’s like, what, $75,000?” an investment banker at a rival firm said as he contemplated Morgan Stanley’s decision. He ran the numbers, modeling the implications. “I’m not married and I take the subway and I watch what I spend very carefully. But my girlfriend likes to eat good food. It all adds up really quick. A taxi here, another taxi there. I just bought an apartment, so now I have a big old mortgage bill.”
Quelle horreur! And who’s to blame? According to Sherman’s interview subjects, it has nothing to do with the economy having been blown up several times over by these very bonus-deprived bankers, or with the fact that all conceivable public bailout money has essentially already been sucked up and converted into bonuses by that same crowd.
By Annalyn Censky @CNNMoney
NEW YORK (CNNMoney) — One Fed official owns thousands of acres of farmland and at least $1 million in gold. Many own individual blue chip stocks, while another appears to hold no major assets other than his home and an employee benefit plan.
Americans got an unprecedented peek at the wealth of the Federal Reserve’s top ranks this week, when the central bank released nearly 600 pages of financial disclosure documents from its current regional presidents.
As the twin pillars of international monetary system threaten to come tumbling down in unison, gold has reclaimed its ancient status as the anchor of stability. The spot price surged to an all-time high of $1,594 an ounce in London, lifting silver to $39 in its train.
On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save – Spain and Italy – though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe’s currency union.
On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody’s to warn of a “very small but rising risk” that the world’s paramount power may default within two weeks. “The unthinkable is now thinkable,” said Ross Norman, director of thebulliondesk.com.
Moody’s Investors Service said Wednesday it has put the U.S. government’s top-notch credit rating on review for a possible downgrade because of the risk that Washington will not raise the federal debt ceiling in time to avoid a default.The firm added that even a brief failure of the government to pay its bills would mean that the United States’s Aaa rating “would likely no longer be appropriate.”
July 13 (Bloomberg) — U.S. Representative Barney Frank, a Massachusetts Democrat, talks about negotiations between lawmakers to raise the U.S. debt ceiling. Frank also discusses Federal Reserve Chairman Ben S. Bernanke’s testimony today before Congress. He speaks with Michael McKee on Bloomberg Television’s “Fast Forward.” (Source: Bloomberg)
Budget, debt ceiling glossaryA cheat sheet for understanding the debate
The announcement comes after Standard & Poor’s, another of the major credit rating agencies, has said that it would dramatically downgrade the U.S. government’s credit rating if payments were missed.
The U.S. has long been able to borrow money cheaply because global investors believe the government can be counted on to repay its debts. If credit rating agencies downgrade the U.S. and investors lose their faith in the creditworthiness of the government, the cost of borrowing money — in other words, the interest rate — could rise.The Treasury Department has said that on Aug. 2, it will run out of legal tools to meet the government’s financial obligations in the absence of an agreement to raise the $14.3 trillion legal limit on how much debt the government can maintain.The Moody’s review is prompted by “the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes,” an announcement from the firm said Wednesday. “Moody’s considers the probability of a default on interest payments to be low but no longer to be de minimis.”
It added that an actual default, or failure by the federal government to pay its bills, “would fundamentally alter Moody’s assessment of the timeliness of future payments.”
In early June, Moody’s had said it would likely review the federal government’s credit rating in mid-July if there were no “meaningful progress” in negotiations over raising the debt limit. That review is now happening.
Moody’s also has placed on review several companies that enjoy implicit backing of the federal government, most notably the mortgage finance giants Fannie Mae and Freddie Mac.
A senior Treasury Department official pointed to the Moody’s announcement as evidence that Congress needs to act to raise the debt ceiling.
“Moody’s assessment is a timely reminder of the need for Congress to move quickly to avoid defaulting on the country’s obligations and agree upon a substantial deficit reduction package,” said Jeffrey A. Goldstein, the Treasury undersecretary for domestic finance, in a statement.
- Moody’s warns it may downgrade US credit rating (sfgate.com)
- Debt ceiling: Waiting on Moody’s (money.cnn.com)
- Moody: US may lose top credit rating soon (msnbc.msn.com)
- Raters Put U.S. on Notice (online.wsj.com)
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by Bob Chapman
June 18 2011: Pensions borrowed (plundered) from heavily, nobody wants QE3, debt used to wage war, Fed Chair Bernanke acts like an elitist, a short term debt limit to deal with, a Greek default could bring the Euro down, a disease of debt, IMF pessimistic.
As far as we can discern the US Treasury thus far has spent and borrowed about $100 billion from the federal pension accounts. Unless there is a vote on the cash debt extension prior to August 2nd, government will probably have borrowed some $250 billion to $300 billion. The Treasury is paying virtually no interest on this debt. Three-month Treasury bills are currently yielding zero percent. Our question is how will the funds be generated to fulfill the Treasury’s obligation to the pension fund? What happens if on August 2nd if legislation is not passed? Does this go on forever? We will keep you apprised on new developments.
The current situation regarding the state of recovery in the US has turned from precarious to dismal and as we predicted a year ago May we will have to be treated to QE3 something no one really wants, but as we said before it is inevitable. The Fed and their controllers, the member bank owners of the Fed, know the present approach doesn’t work and it is only a matter of time, as a result of their policies, when more stimulus will be needed, which in turn leads to more inflation.
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Margins will continue to rise on the COMEX until it reaches the cash price of silver. This works for the shorts as their hammer on the silver market reduced the equity of low cost positions.
The efficacy is short term and made no difference whatsoever in 1980 as the silver market made its highs.
What broke silver in 1980 was a unilateral change (novation) of the silver contract, which went to “sellers only.” Under contract law that is simply not permitted. They got away with a violation in 1980, but the corporate changes in structure at the COMEX that have occurred since 1980 makes the COMEX less able to pull that trick off successfully in 2011.
Silver is simply being silver. Silver did help gold therefore the 25% drop in value has to pressure the gold price.
The USDX is simply having a weak rally off a totally oversold on every internal indicator short side trade.
The dollar has no future. The supply wishing to diversify is simply too big to allow any rally to have legs.
I have told you silver is a game. That being said, it is a great game.
Certainly as the silver price approached the 1980 high, you might have considered selling 1/3.
The high trade on silver was $54 in 1980. Silver’s round numbers are at $50 and $100. Both will function as such in trading.
Silver is not money. It is simply too bulky to be freely and universally fungible. After this short play, which had to follow the spike intermediary top, silver will rise as fast as it did again.
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Chairman Bernanke has placed himself in a box. It is not a box of his choosing, but rather the result of his misguided economic beliefs, use of flawed statistical data, geo-political events occurring during his watch, poor decisions and a penchant for political pandering. Some of these may be requirements for academia success but not for leading global financial markets during turbulent times.
It is time for Professor Bernanke to return to the collegial setting of Princeton University while the world still has time to correct the path he has mistakenly set us on.
I was angry during most of former Chairman Greenspan’s tenure because of his persistent use of liquidity pumping to solve every problem from Y2K to the Peso crisis. Greenspan’s inability to see a bubble two inches from his nose and yet still pontificate about irrational exuberance, rather than taking the punch bowl away from the party, incited me. Bernanke does not affect me that way. He simply disappoints and leaves a taste like eating dry shredded wheat, with the hope of a child, to eventually get the prize at the bottom of the box.
Character flaws show during times of stress. Honesty, integrity, value systems and beliefs are put to test and are highlighted under the public media microscope. I’m sure Chairman Bernanke is a nice guy, loved by his family but he is missing a backbone. On April 27th, 2011, that will become obvious to all.