Highlight clip, via Daily Bail, from Bernanke's press conference last week. Runs 2 minutes, and it takes Ben nearly that long to answer the question, before finally, in the last 10 seconds, he says it is "extremely unlikely" to happen in the U.S. He does not say, however, that taxing or seizing assets from bank accounts is impossible.
My take is "extremely unlikely" coming from Bernanke means the exact opposite. It's been discussed, and if need be, it's on the table.
ReplyDeleteThere is no way the ECB did what it did in Cyrpus without first discussing the scenario with other central banks, most likely including the Federal Reserve.
They are all playing on the same team. To think it can't happen here is being totally naive.
No rumor is considered substantiated until officially denied.
ReplyDeleteO yeah, I trust this maggot...
ReplyDeleteTwo things worth mentioning:
ReplyDelete1. A Cyprus-like bail-in is limited to those unlucky enough to have accounts in the targeted banks, whereas theft through inflation affects society as a whole.
2. I favor bail-ins for the simple fact that even a public school graduate can figure out who the thief is. They don't have a clue when it comes to identifying the culprit when their purchasing power is destroyed through monetary debasement.
Bernanke's eye twitch with his words, '...I consider it extremely unlikely...' shows me that he has discomfort with his statement.
ReplyDeleteI think he considers seizure of depositor proceeds as on the table.