Tuesday, May 11, 2010

Bernanke Tells the Truth Behind Closed Doors: Euro Bailout Isn't Enough

Federal Reserve Chairman Ben S. Bernanke told U.S. senators today that the euro region’s almost $1 trillion aid package to stem its debt crisis isn’t a cure- all, according to participants,reports Bloomberg.

“He said, ‘This is basically not a panacea,’” and that the measures are “temporary,” Alabama Senator Richard Shelby, the senior Republican on the Banking Committee, told reporters in Washington after a closed-door briefing Bernanke held with the panel. “There’s got to be fundamental underlying changes in their economies, not just Greece, but a lot of other countries,” Shelby cited Bernanke as saying.


  1. Of course it is not a panacea. The economic system of the U.S., which has been imposed upon almost every nation in the world by the CIA (KILLING HOPE by William Blum)is an inherently unstable ponzi scheme that is predestined to bankruptcy.

    The Fed and Congress create fiat money by a gift to the Fed of government securities for a line of credit on the accounting ledgers of the Fed. Congress then gets to spend the fiat money. The U.S. Treasury acts as auctioneer to sell the Fed owned securities to make it look like the government is raising money. Actually, it is pulling money out of circulation to reduce the inflationary pressure in the same manner as FOMC does when selling assets. The new money still in circulation then becomes the reserves of commercial banks that are multiplied by the fractional reserve scheme.

    When the securities (bills, bonds, or notes) are given to the Fed, the amount of the principal in the security is created. Every “dollar” in circulation has been created in this manner. The promise is to pay back the principal PLUS the interest. The interest is not created. It does not exist. It is impossible to culminate the contract. Any contract that cannot be culminated is an act of fraud and is void from its inception.

    The only way to pay the interest is to create more principal, but that creates more debt. It is a matter of postponing the inevitable---as in any Ponzi scheme. Perhaps this article may be of interest----- http://usa-the-republic.com/items%20of%20interest/Inherent%20National%20Bankruptcy.html

    Every nation has a similar debt-based economy. They have been imposed by the CIA’s economic exploitation of nations. Ref. CONFESSIONS OF AN ECONOMIC HIT MAN by John Perkins. The plan puts the IMF in charge and the CFR as chief exploiter. Every nation has a Ponzi scheme for an economic system. Every Ponzi scheme terminates when no new patsies can be found.

  2. Good call on Gold RW.

  3. I am going to be blunt here take it for what it is worth

    We're headed for a cost-push crash

    For the newbies, you better know what this means as you're gonna get crushed if you aren't on the right side of this move. It requires being positive about hugely negative financial news. Very few get it. And of those who do, very few can stomach it. For those who can, untold riches. Hooray for the Debt Pushers.

  4. RW: Another smart economist who has no clue about Gold.

    The list is legion.