Saturday, August 28, 2010

Bernanke's latest big lies (revised)






Federal Reserve Chairman Ben S. Bernanke said the central bank has the tools to prevent the U.S. economy from slipping back into a recession, while stopping short of indicating an immediate need for more stimulus.

Look around and ask yourself what we need, and you will find that we need more of certain things, such as infrastructure and factories of all sorts, not simply more currency pushing up the prices on existing goods. The Fed should issue credit for the creation of valuable infrastructure so that the increase in money is balanced by the increase in the real value of the economy. Bernanke's attempt to prop up Greenspan's old bubbles will destroy the economy, as occurred in Weimar Germany, not protect it. Therefore, Bernanke's statement qualifies as a big lie. He is protecting financial bubbles, not the economy. (In fact, his real goal IS to destroy the economy, as was Greenspan't goal behind creating the bubbles. Greenspan received an honorary knighthood from Queen Elizabeth for his service to the Empire.)

Also note that such intervention is a direct contradiction to Bernanke's "free trade" religion/lie of letting prices be determined by an actual free market in securities, ruled by savvy investors. (Even the stock market, that supposed bastion of free trade, is manipulated by injections of funds at key points and times.) Such intervention is "necessary" because derivatives, which have no connection to the real economy, have been given value by government fiat - the government declared these gambling debts ("Monopoly money") to be real money, and they have a nominal value in the hundreds of trillions of dollars. If this connection is not broken with Glass-Steagal, civilization is doomed.

Bernanke also said something to the effect that he will only resort to "quantitative easing" (hyperinflation) when he realizes that the economy is "worse than expected." But aren't "the experts" constantly "realizing" that the economy is worse than they "expected," i.e. worse than the lies they fed us to lull us into a false sense of security? In other words, Bernanke's admitted in code that he's already doing it, as London ordered via The Telegraph, and he's lying about it being a future possibility.