The Golden Truth: Regarding Whether or Not To Take Bernanke Seriously

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.

4 comments:

AnonymousSaturday, 27 February, 2010
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.
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anliuSaturday, 27 February, 2010
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!
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anliuSaturday, 27 February, 2010
Sorry I meant to say Dave.
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Dave in DenverSunday, 28 February, 2010
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.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.