Saturday, November 12, 2011

Bernanke Launches an Old Testament Diss Against Ron Paul

Reuters is reporting that at a town hall meeting with soldiers and and their families, in Fort Bliss, Texas, Fed Chairman Ben Bernanke said:
I'm not a believer in the Old Testament theory of business cycles. I think that if we can help people, we need to help people.
This comment isn't in his prepared remarks, so it must have come during the Q&A.

Despite this being an odd metaphor from a guy who, while a teenager, helped roll the Torah scrolls in his local synagogue, you know that the metaphor is aimed at Ron Paul. Bernanke is pushing Austrian Business Cycle Theory (which Ron Paul supports), as a "Pain Theory" of solving the economic crisis, when he says that "we need to help people". He's implying that something different from the old time economic theories can now be used to "help people" during an economic crisis.

This, I remind you, is coming from a guy who as Chairman of the Federal Reserve crashed the economy and destroyed the housing market, and and where, as a result of the crash, roughly 9%, to this day, remain unemployed. Some help he is.

The poor performance of the economy is, of course, the result of past Federal Reserve money printing manipulations that distort the economy. Once, the money printing stops, even for a short period, like it did in the summer of 2008, the economy attempts to readjust to a non-manipulated structure. Thus, people who find themselves in jobs that are only the result of the distorted Fed manipulated economy, end up unemployed and need to move into jobs that are developing in the non-manipulated economic structure.

The only way the Fed can truly help these people is to stay out of the way and allow the economy to reshape in non-manipulated fashion. This will result in people finding jobs in the non-manipulated economy, which has a much stronger structure and very unlikely to result in an overall general crashes that have become the norm when central banks are created and start to print money.

Bernanke's "New Testament" is about printing money to hold up the manipulated structure, which benefits the banksters, but, also, ultimately leads to massive price inflation, which screws most of the non-bankster population.

Thus, Austrian Business Cycle Theory is not about extending pain. It is about ending the madness with as little pain as possible.

As I have written before:
This "pain theory" that is identified with Austrians and embraced by some is distorting.

One would not, for example, say that a heart surgeon attempting to save a man's life by heart surgery is in favor of pain as the way to save the man, even though pain is most assuredly a byproduct of a major heart operation.

There would never be a critique of a heart surgeon, "Oh, he causes pain." We all know such an operation is performed only to prevent further pain, and possibly death. In the same way, an Austrian economist who calls for a laissez faire attitude during the down phase of the business cycle is doing so only because he knows that the down the road alternative is worse. A resumption of money printing may prop up the earlier central bank manipulated capital structure, short-term, but it will only mean a greater liquidation down the road or hyper-inflation.

Thus, an Austrian calling for liquidation of malinvestments is more like a surgeon calling for a malignant tumor to be cut out. In either case, do you really want the alternative, for them to grow?

Austrian economists aren't into pain anymore than heart surgeons and cancer surgeons. Austrian economists look at the business cycle and are really saying, "Look you better stop this now because it will only get worse." That's not a pain theory. It's a theory to limit pain.
Bottom line: Bernanke should go back to reading "Old Testament" economics. His "New Testament" economics is going to end up creating hell on earth for all of us.


  1. Its a very odd definitions of 'help' where you're stuffing your pockets at the expense of those you're saying your trying to assist, just like claimimg to venerate the troops and implying everyone should do the same(while dumping body parts at the city landfill.)

  2. Fixed it:

    'I think that if we can help bankers, we need to help bankers.'

  3. nader paul kucinich gravel mckinney baldwin ventura sheehan perot carterNovember 12, 2011 at 9:15 AM

    Snake in the grass.

  4. He doesn't want to help anyone. He just wants someone else to point a gun at you and force you to help people.

  5. I am a retiree. I worked hard, have been frugal, and saved for my retirement. I used to earn enough income from my interest to live comfortably. For the last three years, I have been screwed by Bernarke manipulating interest rates below market. I don't know who is helping but he certainly is NOT helping me.

  6. Anonymous 8:40AM and help the politicians also. They get their cut too.

  7. Judging from all the comments made by Mr. Bernanke since he became the Head FED, he doesn't believe in economics at all. His comments through the years exhibit a woeful deficit in the understanding of economics, of history, of monetary mechanics and people.

    If you placed all his comments on both the economy and money then it would be evident that the man simply doesn't know what he is talking about...a collection of such comments would show nothing more than just how big of an idiot he really is...he should have reason to not only be ashamed, but extremely embarrassed.

  8. Anyone that tries to associate the welfare state with Christianity is barking up the wrong tree. Its pretty clear from the biblical accounts of Jesus that he was no friend of the state and most likely would have been horrified at the idea using his words as inspiration for turning over the care of fellow human's to what he knew at the time to be the most corrupt and dangerous institutions ever conceived by man. I would guess that Jesus probably would have been some kind of anarchist and would never call the welfare state an act of compassion or caring. He would probably see it for what it is, which is a means to control people by making them dependent on the state for survival.

  9. Hell on earth is indeed coming.

    I am a reformed Christian, and believe that God made all choices from eternity past, and that man does not have choice; this is known as the election of grace. Social institutions and government are of God action, and not of man’s actions. I place faith in the Bible which communicates that all things are of God, Ephesians, 1:9-11, and that government by kingdoms is God’s ordained plan Daniel 2:41-43.

    Angela Merkel and Nicholas Sarkozy called for a “true European economic government” in the August 2011 Communique. These are simply precursors, antecedents, of the Prince who is to come, Daniel 9:26-27, who will convulse the world before the return of Christ to rule in his Kingdom.

    Some question if the EU and the Euro are a mistake. The unity of economies and a common currency were ordained by God from eternity past as He determined and orchestrated that a Revived Roman Empire would arise from the destructionism we see today. The Apostle John describes the Beast Regime of Revelation 13:1-4, as rising from the sea of humanity, and having seven heads, symbolic of mankind’s’ seven institutions, and ten horns, symbolic of the world’s ten regions. And Daniel the prophet presents the statue of the progression of world kingdoms in Daniel 2:31-45, where a Ten Toed Kingdom of iron diktat is mired with clay of democracy, to form a world wide government. Its political components are not compatible building materials, and will fail, introducing a fierce one world government seen in Daniel 7:7 with global seigniorage Revelation 13:18.

  10. When he says "help people" he means the 1%.

  11. That is a weird metaphor coming from Bernanke. I'm no expert in Judaism, but I thought they didn't even have a New Testament.

    Perhaps, Ben means that Keynesianism is the "Miracle-based" economics.

  12. It is shocking that the idiot 95% people of Earth do not even understand that they are slaves of the global counterfeiters...That's what Bernanke really meant.

  13. I am waiting for Bernanke to say "Yeah, we run a global counterfeit money racket you morons...We own all of you...What are you going to do about it?...Just get over it".

  14. It was pathetic to see this self-absorbed/fatally conceited counterfeiter pontificating to a room full of dopey military people.