Thursday, September 13, 2012
Bernanke
The Fed can only print more money to keep things where they are.
The time of QE generating a boost to the economy is over. Now it's just making certain that the banks continue to get their FIX.
Banks and big investors are now buying foreclosed homes in BULK. They will rent them out to people as inflation skyrockets, locking out the Middle class from home ownership and generating huge profits for corporations. All because of Obama and Bank of Bernanke.
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How do you tax people that don't pay income taxes? Easy! Create inflation. Inflation destroys everyone's wealth... but not the Government. Inflation means higher revenues to the Government. Inflation means that the Fed can pay off current bondholders with cheaper valued money.
ReplyDeleteBernanke is Obama's puppet. So is Timmy. Inflation makes the Government stronger and the people weaker.
Spot on! Bernanke is stealing your hard earned work product!
Delete"On July 1, 1914 (a few months after the Fed was created) the U.S. national debt was 2.9 billion dollars.
Today, it is more than more than 5000 times larger."
"The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar
Did you know that the U.S. dollar has lost 96.2 percent of its value since 1900? Of course almost all of that decline has happened since the Federal Reserve was created in 1913.
Because the money supply is designed to expand constantly, it is guaranteed that all of our dollars will constantly lose value.
Inflation is a "hidden tax" that continually robs us all of our wealth. The Federal Reserve always says that it is "committed" to controlling inflation, but that never seems to work out so well.
And current Federal Reserve Chairman Ben Bernanke says that it is actually a good thing to have a little bit of inflation. He plans to try to keep the inflation rate at about 2 percent in the coming years.
So what is so bad about 2 percent? That doesn't sound so bad, does it?
Well, just consider the following excerpt from a recent Forbes article....
The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level."
http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve
DI
1773-2009 End the Fed
QE3 40 Billion for mortgage backed securities and 45 Billion for treasuries. That's 1 TRILLION a year.
ReplyDeleteIt's all good.... stock market to 15000 and better than before 'Bush' put us in this crushing recession. Obama has come to save the day, the economy, the middle class, the environment, the homeless, Al Qaeda...... but I digress....
ReplyDeleteHe's creating another bubble, but the next time the bubble bursts there won't be a solution because we are much more indebted now than we were when the first crisis hit. Why do you think DHS purchased a billion rounds of ammo?
DeleteBernanke has turned the US in to a diabetic addicted to sweets. Can't end well.
ReplyDeleteBefore I retired 12 years ago I owned and operated an import business. For imports from Europe I traded with Euros and the local currency from Britain Norway Germany and Denmark. From USA the US dollar and from Asia the US dollar as all imports were priced in this medium. The currency was respected, stable and honoured everywhere.
ReplyDeleteSome old partners now tell me there is a strong movement to shift in Asiatic trades from the US to Chinese currency other than from Taiwan. The currency has lost the respect of traders and this is usually the first sign of impending trouble. The practice of continued QE is akin to giving an overdosed addict another shot of H.
Cheers from Aussie
What would make the Chinese currency any more stable than the US currency? They manipulate their currency as well. Does it all come down to perception?
DeleteDoes it all come down to perception?
DeleteSuch is the way of an unbacked currency where 'good faith and credit' are the only value imparted....
This game has been going on for a long time. It is simply a matter of who gets the loot. The folks that have been receiving the bulk of these QE's have not turned this thing around for main street. Maybe it is time to try something different.
ReplyDeleteStormy
ReplyDeleteA perceptive response and please understand my reply is in no way meant to be patronising.
It all boils down to the problem with "Fiat" money. That is, the money we all have but which has nothing with which our respective governments can back it up. America is broke and without massive deflation and or default will remain that way forever. China at present has far less per capita debit and far greater credit. It appears that there is becoming a greater reliance in the Chinese currency for stability and foreign governments becoming less confident in the ability of America to retain the confidence of its trading partners.
Remember, ever since the Romans invented fiat finance; every attempt to resurrect the system has led to failure. Yes re your QE comment, I agree entirely.
Cheers from Aussie
This unfortunately is the flaw with the MMT theorist perspective of money. In a closed system a government can print with 'near' impunity but when the government and its economy must deal with other countries... a much different matter indeed.
Delete"The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence
ReplyDeleteThe mainstream media portrays Federal Reserve Chairman Ben Bernanke as a brilliant economist, but is that really the case?
Let's go to the videotape.
The following is an extended excerpt from an article that I published previously....
----------
In 2005, Bernanke said that we shouldn't worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to "full employment"....
"We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."
In 2005, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets....
"With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."
In 2006, Bernanke said that housing prices would probably keep rising....
"Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."
In 2007, Bernanke insisted that there was not a problem with subprime mortgages....
"At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."
In 2008, Bernanke said that a recession was not coming....
"The Federal Reserve is not currently forecasting a recession."
A few months before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure....
"The GSEs are adequately capitalized. They are in no danger of failing."
For many more examples that demonstrate the absolutely nightmarish track record of Federal Reserve Chairman Ben Bernanke, please see the following articles....
*"Say What? 30 Ben Bernanke Quotes That Are So Stupid That You Won’t Know Whether To Laugh Or Cry"
*"Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?"
But after being wrong over and over and over, Barack Obama still nominated Ben Bernanke for another term as Chairman of the Fed."
http://theeconomiccollapseblog.com/archives/10-things-that-every-american-should-know-about-the-federal-reserve
QE3 Won't work. The banks are already sitting on 1.6 Trillion in excess reserves that they won't lend out. THis is just another wealth transfer from the Middle class. It seems like Obama wants to get rid of the middle class or he is just ignorant about how capitalism works and how government intervention distorts the economy.
ReplyDeleteAlex Jones & Paul Joseph Watson
Friday, September 14, 2012
While Ben Bernanke’s announcement that the Federal Reserve will embark on an open ended scheme to purchase $40 billion in mortgage-backed securities each month has been touted by the establishment media as the beginning of “QE3″ it is in fact nothing less than another banker bailout in disguise.
While many have rightly attacked the Fed’s policy of printing money as a band aid that does little to solve the economy in the long term, this new move isn’t even about that. The policy announced yesterday will merely see the Fed use taxpayer money to purchase more bad debt in the form of junk mortgage-backed derivative based securities that have been sold over and over again.
This has nothing to do with getting the economy going again and will only serve as yet another huge wealth transfer from the middle class to the elite.
While the fed claims the move will facilitate more lending it will do nothing of the sort. As the China Securities Journal reports today, “QE3 is not likely to result in more loans.”
“The truth is that it isn’t as if banks are hurting for cash to loan out,” writes Michael Snyder. “In fact, right now banks are already sitting on $1.6 trillion in excess reserves. Just like with the first two rounds of quantitative easing, a lot of the money from QE3 will likely end up being put on the shelf.”
Indeed, after the TARP bailout back in 2008, the Federal Reserve paid the big banks to withhold loans, because the bailouts are not about reinvigorating the real economy, they are about propping up the stock market for the rich while the real economy goes to the dogs.
QE1 and QE2 both did absolutely nothing to rescue the economy. Despite a massive injection of quantitative easing over the last four years, the unemployment rate in the United States has barely improved.
In addition, the “wealth gap” between rich and poor has vastly increased. This again illustrates how actions such as the one announced yesterday have nothing to do with helping the little guy get back on his feet and everything to do with the concentration of financial power into fewer hands.
As George Washington’s Blog points out, “This is just another bailout for the big banks. (If the government had instead given money directly to the consumer, we would be out of this economic slump by now).”
“Bernanke claims that the main justification for QE3 is to boost employment. This is slightly ironic, since Bernanke’s policies are largely responsible for creating high unemployment in the first place. The real justification is to try to artificially prop up asset prices. But that approach has been proven to be an absolute failure.”
Indeed, the Federal Reserve admits that its new program will do little to alleviate the suffering of jobless Americans.
“I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem,” Bernanke said yesterday.
The fact that we haven’t seen massive inflation since the start of the Fed’s so-called quantitative easing policies illustrates how the money is not even being pumped back into the economy. The only real inflation has been in the luxury sector because the rich are getting richer and spending more while the poor continue to live on or below the poverty line.
QE3 is merely another massive wealth transfer and a tool of waging economic warfare on the poor and middle class, another manifestation of neo-feudalism to destroy America and have the global bankers pose as the saviors.
http://www.infowars.com/new-banker-bailout-disguised-as-qe3/
In Australia today we see the Aust Dollar appreciating yet again against the US unit. We are now, in a little over two years more than 50% higher and this of course is harming our export markets particularly in areas where contracts are written in US dollars.
ReplyDeleteThe following is a small excerpt from this morning’s newspaper and is from a reputable source. I leave my American friends to interpret the figures as they affect your currency and the confidence the world has in the latest QE rubbish.
Cheers from Aussie
"The US Dollar is taking a beating in virtually every asset class due to the Fed's QE Infiniti plan," said Neil Gilbert of GFT.
"The reason for this beat-down is that the Fed will be injecting additional capital into the current money supply, increasing the number of dollars available, and in turn, decreasing the value of each dollar that is currently out there, to the tune of $US40 billion per month."
"The question now becomes, how long will this last?"