Bernanke On the Inflation Train Now- Betrays Fed Principals

[matshock]

http://www.bloomberg.com/news/2010-10-15/bernanke-sees-case-for-further-action-on-economy-with-too-low-inflation.html

The opening paragraph says it all:


Federal Reserve Chairman Ben S. Bernanke said additional monetary stimulus may be warranted because inflation is too low and unemployment is too high.

In basic Keynesian economics inflation and unemployment are supposed to move counter to one another- when they don't the cause of inflation must be through monetary policy which is against the written charter of the Federal Reserve.

Anarchy.

[sevlex]

Here is Denninger's take (excerpted):

More Heroin Please (http://market-ticker.org/cgi-ticker/akcs-www?post=169279)


In a very real sense, Bernanke is throwing Granny and Grandpa down the stairs - on purpose. He is literally threatening those at the lower end of the economic strata, along with all who are retired, with starvation and death, and in a just nation where the rule of law controlled instead of being abused by the kleptocrats he would be facing charges of Seditious Conspiracy, as his policies will inevitably lead to the destruction of our republic.

[HDR]

Loosely translated what Bernanke said was we need to borrow more money to buy our own bonds..

[matshock]

Loosely translated what Bernanke said was we need to borrow more money to buy our own bonds..

Borrow from whom? No one is lending to us anymore.

It's "printed" money- it could not be anything else.

[matshock]

Here is Denninger's take (excerpted):

More Heroin Please (http://market-ticker.org/cgi-ticker/akcs-www?post=169279)

Yep, I'm prepped to take care of my FIL and my aunt Kiku for a while if needs be.

But those social liberals with loose familial bonds- they're going to kill their own, just like Red China in the 60's if they're allowed to continue setting policy.

[HDR]

But those social liberals with loose familial bonds- they're going to kill their own, just like Red China in the 60's if they're allowed to continue setting policy.

There is a book about it.


“Between 1958 and 1962, China descended into hell. Mao Zedong threw his country into a frenzy with the Great Leap Forward, an attempt to catch up to and overtake Britain in less than 15 years The experiment ended in the greatest catastrophe the country had ever known, destroying tens of millions of lives." So opens Frank Dikötter's riveting, magnificently detailed chronicle of an era in Chinese history much speculated about but never before fully documented because access to Communist Party archives has long been restricted to all but the most trusted historians. A new archive law has opened up thousands of central and provincial documents that "fundamentally change the way one can study the Maoist era." Dikötter makes clear, as nobody has before, that far from being the program that would lift the country among the world's superpowers and prove the power of Communism, as Mao imagined, the Great Leap Forward transformed the country in the other direction. It became the site not only of "one of the most deadly mass killings of human history,"--at least 45 million people were worked, starved, or beaten to death--but also of "the greatest demolition of real estate in human history," as up to one-third of all housing was turned into rubble.


http://www.amazon.com/gp/product/0802777686/ref=pd_lpo_k2_dp_sr_1?pf_rd_p=486539851&pf_rd_s=lpo-top-stripe-1&pf_rd_t=201&pf_rd_i=0805056688&pf_rd_m=ATVPDKIKX0DER&pf_rd_r=0006VT284VWA4JRAQYJ8

0bama's America.

[LAGC]

Well, all I know, is if they do start mass printing money and driving up inflation to drive unemployment down, they better start raising the minimum wage again and boosting the COLA (Cost of Living Adjustment) for Social Security recipients so they can keep up.

My boss was commenting on how much Gold is worth right now, when it was only a fraction of the price 10 years ago. Precious metals could be an even better hedge against inflation soon, if inflation starts to take off again like it did during the late 1970's.

http://www.kitco.com/LFgif/au00-pres.gif

[HDR]

http://www.kitco.com/LFgif/au00-pres.gif


How much of gold's increase is due to the shrinking value of the dollar?

[matshock]

Well, all I know, is if they do start mass printing money and driving up inflation to drive unemployment down, they better start raising the minimum wage again and boosting the COLA (Cost of Living Adjustment) for Social Security recipients so they can keep up.


Carter tried it- it didn't work. Unemployment kept rising and so did inflation. All it does is keep an insolvent government afloat which is all Bernanke and Obama/Pelosi/Reid care about at this point.

[serf]

Since the Fed's creation in 1913 the dollar has been debased 97%. The only plan to "pay" our debts is with monopoly money. Everyone sees it but the boiled frogs inside the American pot. Here they show us arranged stats about price inflation that belies what the world sees, and what we can see in those dollar denominated commodities. Then they say those commodities are "the next bubble". Fiat currencies always eventually return to their intrinsic value: zero.

[Penguin]

So it sounds like helicopter Ben is about to live up to his name.

Great just great. Just since when did falling prices become the end of the world anyways. I would like to save some money, and then be able to aford to buy things I currently can't. If we just inflaute the money suply to get every one to spend their money how is going to have any money saved up to invest in things that create new jobs? I fail to see how creating money out of thin air creates jobs.

[matshock]

So it sounds like helicopter Ben is about to live up to his name.

Great just great. Just since when did falling prices become the end of the world anyways. I would like to save some money, and then be able to aford to buy things I currently can't. If we just inflaute the money suply to get every one to spend their money how is going to have any money saved up to invest in things that create new jobs? I fail to see how creating money out of thin air creates jobs.

It doesn't- it erodes the value of debt, that's all.

If you're asset rich but income poor (i.e. a retiree) you're fucked- they're fucking you to pay off their bad debts, period.

It doesn't even fix debt problems permanently- it will create larger entitlements via COLAs then we'll just have the same problems another 10 years from now.

The alternative is that those holding bad debts will have to default, resulting in massive firings of elites so they of course won't let that happen.