Saturday, February 27, 2010

Regarding Whether or Not To Take Bernanke Seriously

when he said in front of Congress that the Fed would stop printing money...there has been a short debate in the comment section of the Greenspan post. I thought that in order to settle the debate, I would resurrect one of my original masthead quotes. This should answer any questions/doubts: 
"The last duty of a central banker is to tell the public the truth."  -- Alan Blinder, [then] Vice Chairman of the Federal Reserve, on PBS's Nightly Business Report in 1994

I think that quote speaks for itself and needs no additional commentary.  Please note that Alan Blinder is an economics professor at Princeton, where Bernanke was Chairman of the economics department...'nuff said.


  1. The Fed just funneled trillions into the big banks. Now he suggest the Fed gov't cut expenses, layoff its workers, cut social security/medicare, pull our troops back from foreign soil to a moribund economy, and stop the graft to its favored corporations. Who the **** buys this shit? The same idiots that have been screaming Fed will anytime now raise the Fed Funds Rate? Anytime now. You just watch. Deflation dead ahead.

    The Fed are not idiots. They know what they are doing, which is to loot the treasury while Rome burns.

  2. Dan my mistake... In the article ben said the fed was not going to monetize the huge government deficits and did not say he was NOT going to extend the qe program. My bad.

    So come march he might well extend the qe program but stop providing the invisible bid in the treasury auctions!

  3. Sorry I meant to say Dave.

  4. anliu: how do you know when Banana Ben is lying? answer: when his lips are moving.

    Anonymous above is right about the Fed/Banks looting the system while it burns. I don't agree on deflation, but the best way for them to loot the system is to either print money or issue debt (it's one and the same when you can't pay back the debt, quite frankly), pay themselves lavish salaries while they use taxpayer obligations to monetize their bad business decisions. exactly why they are keeping AIG alive. AIG, and soon FNM/FRE, are the massive monetization conduits. The Taxpayers will be stuck with the bill and eventually the system collapses anyway.

    Sorry, it's not pretty but it's what's going on.