Comments on: Caught In A Lie: Bernanke Promised Congress The Federal Reserve Would Not Monetize The Debt But Now That Is Exactly What Is Happening

By: Philip M.

Philip M. — Wed, 10 Nov 2010 18:16:54 +0000

> So Federal Reserve Chairman Ben Bernanke has been caught in a lie.
> Will we ever be able to trust a single word that he says ever again?

The FED’s current unease about QEII can prove prophetic. Not that this unease is going to impact the monetary policy in any significant way.

http://www.hedgethebets.com/latest/2010/10/feds-qeii-is-no-shot-in-the-arm/

QEII (quantitative easing, part two) is no shot in the arm for the real economy. The reason why quantitative easing will not have the desired effect this time around is that the underlaying problem has evolved. The challenge we are facing now is not a lack of liquidity. It is a lack of credit. More cash will only fuel new bubbles.

John M. Keynes’ Depression-era General Theory of Employment, Interest and Money was aligned with the policies of the New Deal and delivered results, but is largely misunderstood today. It is not about big government mindlessly going on a spending spree with borrowed money. Keynes actually suggested that the government should run a surplus in good times to pay off the debt acquired in bad times. He also suggested the government should borrow and redistribute money in bad times to stimulate the economy by increasing aggregate demand. It should channel the spending through the hands of consumers who have the highest propensity to spend so that they actually do spend and prop up demand in the process.

http://www.hedgethebets.com/latest/2010/11/markets-expect-political-gridlock-and-why-it-could-actually-be-a-good-thing/#theStimulus

We didn’t follow the Keynesian model but we like to criticize it for “not working”.

http://www.hedgethebets.com/latest/2010/11/markets-expect-political-gridlock-and-why-it-could-actually-be-a-good-thing/#reverseKeynesianism

Well. Bernanke wants to avert a Great Depression 2.0, no matter what, even if he crashes the value of the US Dollar in the process.

By: BenBenson

BenBenson — Mon, 08 Nov 2010 19:32:47 +0000

Remember, it is 100% legal to pay your tax liability at the end of the fiscal year without using inflation adjusted accounting under GAAP. Thats right, you just might be able to cover your taxes at the end of the year by selling some goods (a carton of cigarettes, etc) the week before. If you avoid holding FRN for any lengthy period otherwise (JIT, etc) then you could come out ahead by conducting your business nearly tax free. This is why capital controls are looming (that 1% transaction tax)

By: Uncle B

Uncle B — Mon, 08 Nov 2010 18:31:12 +0000

Usury!Big fat great hulking American neanderthals, good natured but dumb beasts, bred by over 200 years of corporatist seeking and breeding from best European stocks, an animal for the exploitation of North America’s treasures! Now the treasures are all gone! New mechanical means of exploitation are in place and we witness the final stages of the eradication of the once very profitable great hulking American neanderthal – even his doctors through their Medical insurance cartels refuse him and his progeny basic medical care for survival if they can brand him as unemployed!
The new semi-slave Chinese labor unit, armed with modern factories are the laborer of choice now for the Capitalists, Corporatists of the world and America will suffer decline from this time forward as long as Asians are willing fuel for their cannons! Bernaki is a bullshitting corporatist foil, fooling some of the people all of the time as the American paradigm out dates itself and fails in the shadows of the Asian factor. The gold has gone to Asia What America suffers today is only the after-shock!

By: Dave

Dave — Mon, 08 Nov 2010 12:42:31 +0000

The Fed is doing exactly what it was installed for, and that is to DESTROY THE AMERICAN ECONOMY. Well, they’re actually destroying the economy while making obscene profits. They’re also buying up all of the real, tangible assets of the country. And the People will get the bill…

By: hallicom

hallicom — Sun, 07 Nov 2010 22:10:10 +0000

Well I am so tired of hearing that the American people having been asleep when 99% of the worlds population are in financial trouble.

By: zack

zack — Sun, 07 Nov 2010 18:58:55 +0000

“Will we ever be able to trust a single word that he says ever again?”

We could never trust Bernanke to begin with. This was the same dolt that told us that there was no housing bubble in 2006, and that the economy was fundamentally sound in 2007/2008. He’s an incompetent crook, and here’s the video to prove it!
http://www.youtube.com/watch?v=igJEYBAd7Go

We help Americans find jobs and prosperity in Asia. Visit http://www.pathtoasia.com/jobs/ for details.

By: Cromag

Cromag — Sun, 07 Nov 2010 16:32:28 +0000

There is a lot of conjecture in this article. Besides taking Bernake’s comments out of context, the writer implies it is wrong for the FED to be independent. Also, there are populist economists who would disagree with the classicist Austrian slant of this article. I recommend people read a lot more diverse perspectives before jumping to conclusions. Find opposing sources and Get educated. The ruling elite have a easier time manipulating the ignorant.

By: Jesse

Jesse — Sun, 07 Nov 2010 00:59:35 +0000

I never trusted him or any of the others. There job is to bankrupt this country and his doing it.

By: Philip M.

Philip M. — Sat, 06 Nov 2010 20:24:47 +0000

Caught in a lie. Bernanke also promised that the Fed wouldn’t cause inflation. But QEII will certainly cause imbalances, bubbles and inflation.

http://www.hedgethebets.com/latest/2010/10/why-feds-adventures-with-u-s-government-debt-and-chinas-interest-in-natural-resources-could-flare-up-inflation/

The Fed has recently announced QEII (quantitative easing two, named like this in fond memory of QEI, which has saved us from a re-run of the Great Depression at the onset of this financial crisis). Could this be a hint at China’s growing reluctance towards investing in U.S. treasuries? Given current low yields, it seems reasonable to assume the Chinese aren’t thrilled.

Our biggest trading partner China has been by far the biggest investor in long-term U.S. government debt, as it needed a safe haven to bank its mounting trade surpluses. Should China seriously shift its focus towards buying up natural resources such as energy, rare metals (needed to manufacture technology products) and commodities, we would be looking at inflation at some point down the road.

If we do contract inflation, the Fed will be forced to resort to a contractionary monetary policy with higher interest rates.

This would bring the stuttering U.S. economy to an instant halt.

By: Nancy

Nancy — Sat, 06 Nov 2010 17:32:46 +0000

This is for unknown-There is a reason that Obama and his cohorts are in India, I mean aside from fact that he is performing some kind of SICK RITUAL. Also that Bernanke and his ilk have taken off to Jekyl Island. They are getting the “HECK OUT OF DODGE” before the last SHOE FALLS, so to speak. I’m telling you, “SOMETHING WICKED THIS WAY COMES!” There is no doubt in my mind.