Thursday, January 30, 2014

Bernanke's Highlight Reel

  • The Federal Reserve jumped in and bailed out "too big to fail" banks that made bad business decisions.
  • The Fed continued to buy Treasury bonds in order to keep interest rates down.
  • The Fed openly acknowledged that their policies force seniors to put their life savings at risk.
  • Around 25% more baby boomers and Generation Xers will not have enough money because of Fed policies.
  • The Fed is creating a stock market bubble that will eventually burst.
  • Bankers are making record profits and paid out record bonuses for 2013.
  • Bernanke left behind a 100-year money supply that is continuing to double annually.

(From Miller's Money)


  1. How'd he get the 25% number with regards to people not having enough money?

  2. Don't let the revolving door hit you in the ass on the way out, you POS.

  3. 1) The Fed was created to bail out banks. The Fed has served as lender of last resort since day 1.
    2) The Fed is required by law to expand credit to reduce unemployment. They expand credit by buying treasuries.
    3) The Fed has not forced seniors to take any action. Trying to generate inflation puts their savings at risk but they are required by law to generate inflation to reduce unemployment.
    4) 25% is a number pulled out of the air.
    5) Fed is not creating a stock market bubble.
    6) Now is not the time to make profits?

    "there will be time for them to get bonuses -- now is not that time" - Obama

    7) Money supply is not doubling every year. Monetary base is up 336% since zero interest rate policy was adopted in Sept 2008. That's an annual rate of growth of 30%, not 100%. (874 billion to 3.8 trillion).

  4. So... the Fed was created by bankers for the bankers. Bernanke just made that same old scam to run 100x faster.

    So, what is your point, troll?

  5. Why is the Federal Reserve Tapering the Gold Market?

    Manipulation of the gold price is a foregone conclusion. The question is: why is the Fed tapering?

    The official reason is that the recovery is now strong enough not to need the stimulus. There are two problems with the official explanation. One is that the purpose of QE has always been to support the prices of the debt-related derivatives on the balance sheets of the banks too big to fail. The other is that the Fed has enough economists and statisticians to know that the recovery is a statistical artifact of deflating GDP with an understated measure of inflation. No other indicator–employment, labor force participation, real median family income, real retail sales, or new construction–indicates economic recovery. Moreover, if in fact the economy has been in recovery since June 2009, after 4.5 years of recovery it is time for a new recession.

    One possible explanation for the tapering is that the Fed has created enough new dollars with which to purchase the worst part of the banks’ balance sheet problems and transfer them to the Fed’s balance sheet, while in other ways enhancing the banks’ profits. With the job done, the Fed can slowly back off.

    The problem with this explanation is that the liquidity that the Fed has created found its way into the stock and bond markets and into emerging economies. Curtailing the flow of liquidity crashes the markets, bringing on a new financial crisis.

    We offer two explanations for the tapering. One is technical, and one is strategic.