The Golden Truth: Regarding Ben And His Credibility As An Economist

Wednesday, June 9, 2010

Regarding Ben And His Credibility As An Economist

A commentor posted these little gems of wisdom straight from Helicopter Ben's mouth. Remember these the next time you hear him report that there is no risk of a double-dip recession and the U.S. dollar is the Rock of Gibralter:

March 28, 2007: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”

May 17, 2007: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”

Feb. 28, 2008, on the potential for bank failures: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”

June 9, 2008: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”

Golden Truth Commentor June 10, 2010: "Why does anyone still listen to this guy?"

7 comments:

JuanWednesday, 09 June, 2010
They listen to him because "they" (the financial press) and "he" share something very important in common.
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Dave in DenverWednesday, 09 June, 2010
reach-arounds?
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stibotWednesday, 09 June, 2010
There is quite interesting development in my country. Gov seems to push a law that each employee must buy government's bonds for around 3 % of his/her salary.

Of course, it is not introduced as 'buying bonds plan' but it is encapsulated to new 'pension reform'.
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Dave in DenverWednesday, 09 June, 2010
that law will be coming soon to the U.S.

how's the gold coin supply over there?
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stibotWednesday, 09 June, 2010
Supply not as good as year ago, some stuffs still missing here on dealers' lists. But from panic month ago it has improved much and premium has normalized.
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AnonymousWednesday, 09 June, 2010
"Of course, it is not introduced as 'buying bonds plan' but it is encapsulated to new 'pension reform'. "

This is the US scheme: http://www.goldworth.com/lewrockwell.html
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RothbardWednesday, 09 June, 2010
Everybody wins! The gov finances their deficits and the people win b/c their hard-earned dollars are put into "less risky" pension assets (bonds vs equities).

YAY! We're all winners.

Pay up your 3% Joe Plumber. Someone has to pay for the Billions in TARP and other bank bailouts. Do your share for the good of the country (and help pay forthe bankster bonuses).
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Add comment

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.