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Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?

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Did you see Ben Bernanke’s testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true. Bernanke insists that the economy is getting much better, that quantitative easing will lower long-term interest rates, that all of this money printing by the Federal Reserve is not causing inflation and that the Fed knows exactly what needs to be done to dramatically reduce unemployment inside the United States.  So is anyone out there still actually buying what Bernanke is selling?  Sure, a handful of people in the mainstream media still have complete faith in Bernanke.  But for the rest of us, it is becoming increasingly clear that there is something really “off” about Bernanke.  So just what is going on with him?  Is he lying to all of us on purpose?  Could he be insane?  Is he just completely and totally incompetent?

Bernanke’s track record of failure is absolutely stunning.  Before discussing some of his most recent comments, let’s review some of the pearls of wisdom that Bernanke has shared with us in recent years….

2005:  “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”

2005: “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

2006: “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

2007: “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

2007: “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

2008: “The Federal Reserve is not currently forecasting a recession.”

So should we believe anything that Bernanke is saying now?

Of course not.

Obviously Bernanke has been feeding us all a whole bunch of nonsense for a very long time.

So what conclusion should we come to about Bernanke at this point?

Well, as I see it, there are three primary alternatives….

1 – Bernanke knows that what he is telling us is wrong and he is purposely trying to deceive us.  That would make him a liar.

2 – Bernanke actually believes what he is saying because he is completely delusional.  That would make him a lunatic.

3– Bernanke actually believes what he is saying because he simply does not understand economics.  This would make him completely and totally incompetent.

In any event, someone with Bernanke’s track record should not still have such a high level job.  He should have been asked to resign long, long ago.

But instead, Obama nominated him for another term and he was approved by our incompetent Congress.

It is a crazy world in which we live.

So what is Bernanke saying now?

Let’s take a look at some of his main points…..

Bernanke Says That One Of The Main Goals Of Quantitative Easing Is To Reduce Long-Term Interest Rates

During one interview about QE2, Bernanke made the following statement….

“The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”

In fact, Bernanke elaborated on that point during his remarks on Wednesday….

Conventional monetary policy easing works by lowering market expectations for the future path of short-term interest rates … By comparison, the Federal Reserve’s purchases of longer-term securities do not affect very short-term interest rates, which remain close to zero, but instead put downward pressure directly on longer-term interest rates.  With the Fed funds rate at the zero bound, the Fed had to resort to unconventional policy to provide further accommodation.

So how is all that working out?


The yield on 10-year U.S. Treasury notes has risen from 2.49 percent back in November to 3.65 percent at the close of business on Wednesday.


Long-term interest rates were supposed to go down as a result of quantitative easing, but instead they have increased substantially.

Looks like Bernanke was wrong about another one.

Bernanke Says That Quantitative Easing Is Not Going To Cause Inflation

The price of wheat has roughly doubled since last summer, the price of corn has roughly doubled since last summer and the price of oil is marching up towards $100 a barrel.

But oh, there is no inflation so there is no need to worry according to Bernanke.

Food riots are breaking out around the globe, but Bernanke says that the inflation in those countries is being caused by their own central banks.

Bernanke says that the Federal Reserve has nothing to do with international inflation even though the U.S. dollar is the primary reserve currency of the world.

Bernanke says that even though consumers are seeing huge price increases in the supermarket and at the gas pump that we aren’t really seeing any real inflation because the fraudulent U.S. consumer price index says so.

It is a wonder that anyone still considers this guy to be credible.

Bernanke Says That Quantitative Easing Is Helping The Economy Recover And Is Reducing Unemployment

During his remarks on Wednesday, Bernanke said that the recent decline in the U.S. unemployment rate was “grounds for optimism”.

And, of course, he is glad to take part of the credit for the “recovery”.

Oh really?

Things are getting better?

As I wrote about a few days ago, the “decline” in the U.S. unemployment rate during January to 9.0% is no reason to celebrate.

First of all, the U.S. economy must add 150,000 jobs each month just to keep up with population growth.

During January, the U.S. economy only added 36,000 jobs.

So why did the unemployment rate go down?

Well, the U.S. government said that 504,000 American workers “dropped out of the labor force” in January.

Well, isn’t that convenient.

Let’s just pretend a half million unemployed workers are not even there.

Yeah, that will make the numbers look better!

Sadly, the number of Americans that are “not in the labor force” but that would like a job right now has hit an all-time record high.  If you add all of those people into the official unemployment figure it would jump to 12.8%.

The truth is that the employment situation in America is not getting any better.  In fact, according to Gallup, the unemployment rate actually increased to 9.8% at the end of January.

Perhaps Bernanke should reconsider how much “better” things are really getting.

Bernanke Says That Now Is Not The Time To Reduce The Deficit

When it comes to the national debt, Ben Bernanke is constantly talking out of both sides of his mouth.

Bernanke is constantly saying that the exploding U.S. national debt is very dangerous (and he is very right about that point), but Bernanke also says that now is definitely not the time to do anything about it.

In fact, recently Bernanke has been purposely stepping into the partisan debate about whether to raise the debt ceiling or not.

Bernanke says that Republicans should stand down and that now is not the time to be playing political games with the debt ceiling.  Bernanke has been warning that the consequences for not raising the debt ceiling could be catastrophic….

“We do not want to default on our debts. It would be very destructive.”

Over and over Bernanke has been saying that the economic recovery is still fragile and that now is not the time be cutting deeply into the federal budget.

So when is the right time?

Well, with these central bankers it seems like it is never time to address all of this debt.  It seems like they always want us to “have a long-term plan” to tackle the debt in the future but to keep borrowing and spending in the present.

Well, it looks like that is exactly what the Obama administration plans to keep doing.  This year it is being projected that the U.S. government will have the biggest budget deficit ever recorded – approximately 1.5 trillion dollars.

Keep in mind that the total U.S. national debt did not surpass 1.5 trillion dollars until the mid-1980s.

That means that this year we will accumulate more debt than we did for over the first 200 years that this nation was in existence.

Oh, but according to Bernanke we better not do anything to address our out of control debt because that would “harm the economic recovery”.

In the end, all of this government debt is going to become so monstrous that it is going to swallow us whole.  We can try to keep running from it, but we can’t hide.  Someday the gigantic debt monster that we have created is going to catch up with us.

So, yes, there are a whole lot of reasons to be really upset with Ben Bernanke.

Perhaps he would be a fun guy to sit down and talk to at a backyard barbecue, but he isn’t the type of person that you would want to entrust with any real responsibility, and he most definitely is not someone that should be running the largest economy in the history of the planet.

  • impeachRonPaul

    Alan Greenspan was the worst. Bush and Greespan killed this economy for decades.

  • ISN

    He’s just a puppet who’s repeating what he’s programmed to say.

    The elite bankers make the decisions and tell him what to do, in order to extract as much money out of Americans in a calculated manner, as to not awaken us out of our slumber.

    They’ve been manipulating the price of silver bullion for decades, in order to make the dollar look stronger.

    International Silver Network

  • Bernank is none of those things. He is sneaky smart. He just has to act stupid.

    I am going to clip the real reason why he cannot stop printing. Jim Sinclair’s Commentary

    What I find baffling is why a person who understands this problem accepts the derivative level at $600 trillion dollars just because the Bank for International Settlements changed the means of measure to Value to Maturity. Value to Maturity assumes the vast majority of OTC derivatives have value or will function, making it a sick cartoon. The real number is over one quadrillion one thousand forty-four trillion dollars.

    Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks

    We’ve been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I’d rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks.

    I’ve written this analysis before. But given the enormity of what it entails, it’s worth repeating. The following paragraphs are the REAL reason Bernanke does what he does no matter what any other media outlet, book, investment expert, or guru tell you.

    Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only. That reason is: DERIVATIVES.

    According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION.

    Five banks account for 95% of this. Can you guess which five?

    The world banking cartel is insolvent. A one percent rise in 30 year bond rates will send this house of cards into the abyss.

    Bernanke cannot stop printing ever. You are witnessing the end of our currency. Collapse time. Any time. All of that gibberish he splatters to us sheep is gibberish. It must kill that guy to have a Ph.D from M.I.T., a 1600 SAT score and to have to act this stupid in public.

  • Stu

    Again, I think this is an Illuminti thing pulling his strings, along with Obama’s. How else could the people in the US keep this going with no civil revolution, or maybe its coming.
    I suppose another answer would be Ben knows there is nothing left to be done only stay calm until the crash as there is no way out or avoiding it, then start from scratch perhaps with a new currency?

  • Silver Bean

    Outstanding column, very well put. This guy has gotta go.

  • But, like Obama, he is close to achieving something I would not have believed possible – making his predecessor look good.

  • Liar, Lunatic, incompetent, I think he is probably all three. He seems to have no idea how he is destroying not only the US economy, but the world.

    Also sprach Analyst

  • > Well, as I see it, there are three primary alternatives…

    I suspect there is the fourth:
    Bernanke does not care what he is saying, because his WORDS are of no value to his superiors – as long as he delivers RESULTS satisfactory to them. Otherwise he would be kicked out of his position for… well, there is always a convenient scandal to fire an official over.

    Thus, the dead end we are in now must be a part of the plan. That’s for all of you conspiracy theory fans. For Occam’s razor’s fans, it means than either nobody in any level of government has a clue about anything, or they are total slaves to their greed and lazyness-to-think.

    I think he is a liar who knows what he is doing, while people he is reporting to are idiots. Look up “snafu principle”.

    But most importantly, we should stop worrying about what we cannot change and work on our own level without trusting anyone to solve our problems or multiply our savings.

  • VegasBob

    Bernokio’s zero interest rate policy has stolen hundreds of billions of dollars of interest income from prudent savers over the past few years. That alone makes Bernokio the biggest thief in all of world history.

    Harry Truman had some choice words back in 1968 when he was asked his opinion of Richard “Tricky Dick” Nixon.

    These words apply to Bernokio as well:

    “A shifty-eyed g****mn liar…who talks out of both sides of his mouth and lies out of both sides too.”

    Anybody who is stupid enough to believe the blather that comes out of Bernokio’s mouth deserves what he gets.

  • Yes, these people are playing their own game. I’ve given up long ago…

  • Michael2

    Mr. Bernanke is using what I like to call psycho-babble-double-code-speak, and it’s designed to go along with an old saying I was once told by an old country Irish man, “If you can’t dazzle them brilliance, baffle them with bullshit.”

    The blog moderator competently notes, “In the end, all of this government debt is going to become so monstrous that it is going to swallow us whole.”

    In the mean time, I would like add that in my humble opinion millions of people are already being eaten alive by the monstrous financial schemes wreaking havoc on the world. What is going on now is designed to enslave the generations to come in debtor’s slavery and to shackle them to system designed for their failure.

    Welcome to the Old World Order, same as it ever was.

  • Michael2

    Stu, Stu, Stu,

    About the Illuminati, may I suggest that you do some in-depth research about that ancient secret society?

    I can assure you Sir, this society is not at all a villainous, cabal they have been made out to be in conspiracy theory circles and in some cases, in the pop culture, i.e. in movies like, The Da Vinci Code or Angels and Demons. And in fact, even in Angels and Demons the villain, a priest, tried to place the blame for his evil deeds on the Illuminati to steer authorities away from him. How apropos is that?

    You can be assured that when there is a concerted effort in the main stream media to discredit and demonize high profile organizations, especially political or religious, the exact opposite is almost always more like the truth. For instance the mainstream media tried and tried to discredit the Tea Party. Why, because the “people” who control the media, fear populous movements of this sort. I do not always agree with the Tea Party but I certainly respect what they are trying to do and their right to do it. I even attended a Tea Party function to see for myself if the accusations of the lame-stream, I mean mainstream media were true.

    We are living in times when questioning what we are told is paramount. Look at what believing everything whole sale, without question has brought this society, moreover the world. I have questioned the establishment and did my own research since my teenage years and I could say, theorize and prove things that may curl your socks.

    There is more to the Illuminati than is popularly available if one cared to do the research. Did you know that quite a few of the Founding Fathers of America were Illuminati or associated with members of the Illuminati? As well many Illuminati concepts are enshrined in the US Constitution. As far as I am concerned the Founding Fathers did not go far enough when it comes to putting Illuminati ideals in the Constitution. Furthermore, competent research will reveal other past members of the Illuminati whom it is impossible, and utterly ridiculous to accuse of evil or being capable of evil conspiracies against human kind. Check this claim out for yourself!!

    There are reasons why the Illuminati are attacked and maligned my friend, and I dare say, those reasons and the “people” behind them are what are dark and malignant and pose the real threat to humanity.

  • SPECTRE of Deflation

    He’s certainly a liar, and he’s certainly insane with his thoughts, and many of his actions are criminal. I’m not so sure we aren’t dealing with Dr. Evil’s brother.

  • BJ99-MD

    He probably knows that we can’t handle the truth of our situation, and its way too late for him to change boats in the middle of the stream. We sent a circus to The Capitol in November, so we are at the very least trying to force ourselves to believe we aren’t in crisis mode. We have capable citizens fully qualified to run this country on behalf of its citizens and we need to begin to identify them. Absolutely nothing is being done to assist the middle class and small businesses – for all of the above reasons.

  • SPECTRE of Deflation

    The sheeple love the guy according to the polls. He’s stealing them blind, and they love him. There’s a condition where a hostage grows to trust and help the captors who kidnapped the hostage. This may explain the infatuation with The Bernack by the sheeple. They must love being sheared repeatedly.

  • Mark Payne

    Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only. That reason is: DERIVATIVES.

    100% correct.

  • Kevin

    Their faced with one of two choices. Allow the US economy to contract to a level equal to our wealth generation or keep the economy going with tons of additional money to displace the lost wealth creation.

    If the former is taken we have a depression now. If the latter road is chosen we have an economic collapse at a later date that will be far worse.

    This is decades in the making. In the end regardless what road is taken the US standard of living significantly drops.

  • Bonus Gift

    I’m with Zarathustra, the answer is D, all of the above. He is clearly lying (e.g., by knowing that ‘inflation is always and everywhere a monetary phenomenon’ – Milton Freidman – yet claiming that if the Fed multiplies the monetary base nothing inflationary will come of it). He is clearly a lunatic or insane by believing that the result of his monetary policy will have a different result than that made throughout history (e.g., Einstein’s definition of insanity is repeating an action yet expecting a different result). Finally, he is clearly an idiot and incompetent (see, e.g., one of his many predictions about the ‘subprime crisis’, the housing bubble more generally, and the economy and world economy even more generally). Yep, all of the above: a liar, lunatic & incompetent.

  • Ron Paul was right all along.

    And the only one with the intelligence all along to tell the truth–Ron Paul– is not being listened to. Common sense is not that common.

  • Adrian

    I don’t think he is stupid. He knows exactly what is happenning. He has no choice but to give a brave face and lie to the public. The country is absolutely bankrupt. He has to do this money printing to keep the country and in fact the world economy to stay “afloat”. Othewise hell will break loose. At anytime something may spark the selloff of Wall Street and the collapse of US dollar. That is why the printing of money is also used to bailouts foreign banks as well.

  • Mr. Bernank knows EXACTLY what the hell he is doing.

    He is keeping the Greatest Ponzi Scheme in the history of the world going until it is absolutely impossible to do and it explodes . . . into WWIII (or the other alternative is some “alien invasion” scenario) and to help out the owners of the Fed, i.e., the Banksters on Wall Street and in the City of London, as long as he can.

    Once you understand that, EVERYTHING that he and Mr. Greenspan did and he is doing currently, including all those things listed above in this particular blog, becomes crystal clear.

  • kurly

    You are the sheep.

    Bernanke’s job is to keep the sheep placid – or at least not in open revolt – until the shearing is done.

    Now that the shearing is almost done, Bernanke will no longer be required – neither, for that mater, will you.

  • aldo

    both just like most public official appointees as of late. Incompetent and corrupt individuals are routinely to posts of influence on the basis of what they will do to help the cause of the “appointer” not on the basis of their competence integrity and vision.
    This trend has develop over the last 20 years or so as a fallout of affirmative action appointments.
    Affirmative action in fact has inculcated into people that it really does not matter how good you are or how well you do your job. You are promoted only because someone wants you promoted.
    The chinese say” the fish begins to rot from the head”

  • Cleber


    I’m glad to see reports like this. I long time ago I felt a strage sensaton about how the goverment and all his teams can do things in an heterodoxy way at Bernanke’s style and wait for ortodoxy reaction of the society.

    I think the moment government is teaching the society how to make money, where the main trick is to be part of Wall Street. But they keep waiting for some solutions to come from main street in an ortodixy old fashion.

    Bernanke and all those guys that keep him at this positions are lunatics, of course!

  • Gary2

    I guess this proves yet again that it is who you know (meaning luck) and not what you know that determines how you get a good paying job. I know folks that are dumber than a pile of bricks yet have good paying jobs, yet people who are smarter by many times are underemployed.

  • Indian Joe

    >..economy is getting much better, that quantitative easing will lower long-term interest rates, that all of this money printing by the Federal Reserve is not causing inflation>

    His new anti depressants are working.

  • mondobeyondo

    Bernanke is smarter than the average bear. And he’s crazy like a fox.

    He isn’t stupid. He knows what his actions are doing, and what it means for the economy. It’s all very deliberate, and he’s making himself out to be “dumb”, so the masses of sheeple don’t catch on. For if they do, there would be a revolution overnight. Just make sure the wool is pulled over their eyes (pun intended).

    Bernanke supposedly spent a lot of time studying the Great Depression and its causes and effects. So apparently he knows what caused it. He also knows how to create another one.

  • CaptCook

    He is doing exactly what a banker should do. He continues to tell you to borrow more money and go deeper into debt.
    Then when you can’t pay, he will make you sell off your assets(our country) and pay off most of the debt. Then make you keep paying by becoming their “Debt Slave!”

  • mondobeyondo

    Bernanke says that now is not the time to reduce the federal deficit??

    He’s right. Something should have been done about it in 1980, when there was still time. Quantitative easing reducing unemployment and helping the economy??! Increasing the money supply will increase hiring? Come on, Ben. Jerry Seinfeld was much funnier. You’ll never make it in the comedy club circuit, that’s for sure. You know Wall Street and the BANKS will be the first to get the new money. The banks will most likely hoard it all, and not lend anything to anyone. No lending to small businesses = no hiring.

    It’s too late now. The fire’s been lit long ago, and the more QE money that’s thrown at the flames, the hotter it will burn, until the entire country is burned to the ground in a financial holocaust.

  • Sirena

    I agree with ISN, he is just a puppet, like many others.
    The REAL players always stay in the shadows.

  • impeachRonPaul

    Bernanke is okay, Greenspan and Bush ruined the economy for decades.

  • Lennie Pike

    Come on!!! Grow up!!! Of course he is lying – but what is he, a liar? No!!! – he is a criminal who is lying, and laughing his ass off that everyone is trying to figure out whether he is a good guy or a bad guy.

    He works for the biggest criminal organization on the planet – the Western Banking Cartel and it’s subservient corporations who’s majority shareholders are the Elite. They do not work for or care about the other 99% of the World’s population.

    Governments, lawmakers, regulators, courts and police in many cases, and the military work for them – not us.

    We all know this, we just will not admit it because admitting it would be an admission that we don’t have the balls to do what is needed to put an end to their illegal power over us.

    They own all governments because they counterfeit money. And they will keep on counterfeiting money until they are forced to stop. They never will stop even after hyper-inflation because they will just come up with a different fiat currency and keep on abusing us cowards as long as we keep willingly using their counterfeit money.

    Feel like and Egyptian yet? If not you will shortly and for the exact same reasons. The feeling that you are being abused will be originating from the exact same people but it will take many years if ever to grow a pair large enough to enable you to rise up like the Egyptians, Greeks, Irish, Icelandians (sp?), Spanish, English, (and even the French? – shameful!!!) etc. etc. etc. and do something about the unconstitutional actions of your abusers.

    Keep on trying to figure out Bernanke, yeah…..that’s the ticket.

  • mel

    We can say all we can about Bernanke, he is here to stay because he can print money. The only politician that can stop Bernanke is Ron Paul. Unless Ron Paul is elected in 2012, I see Bernanke continue for another few more term and we will QE infinity!!^DJI,^GSPC,UUP,UDN,TBT,TLT,GLD,gdx,slv,^dji,^gspc

  • alice

    If your comments above are correct, and I do believe you are, what can anyone do about it?? Should we?? Anybody elected to replace him can be bought and sold, so where is the solution?? Get rid of the FEDERAL RESERVE?? If so, the markets will drop like a rock, panic, worldwide civil unrest? Is the price too great at this point, to turn this ship around?? Maybe we are better off staying the course, and hope for the best! 500 trillion can devastate the whole world economy for decades to come! Is it worth the risk? And who are these people advocating for the biggest gamble in human history? I think I’d rather trust Bernanke and Co., than the unknown demons who won’t take responsibility for their claim of a better future, if they just shut down the FED!! Maybe it’s you, who don’t know what you are talking about! WE HAVE A CHOICE BETWEEN BAD AND WORSE! Maybe Bernanke is bad, and you are worse!

  • Stu

    February 10th, 2011 at 11:22 am
    Stu, Stu, Stu,

    About the Illuminati, may I suggest that you do some in-depth research about that ancient secret society?

    I can assure you Sir, this society is not at all a villainous, cabal they have been made out to be in conspiracy theory circles and in some cases, in the pop culture, i.e. in movies like, The Da Vinci Code or Angels and Demons. And in fact, even in Angels and Demons the villain
    Care to share who these “people” are? Sounds really interesting.

  • DeathSpiral

    It’s Economic War against the working class. These Super Rich are profiting on the middle class losing their homes, credit and jobs while they are squandering the nations wealth on wars and pet projects:

  • impeachRonPaul

    Ron Paul is a religous right fascist. He wants to force his religous belief as law. I’d rather live in a failed economy than vote for a right wing bigot like Paul. He has been on the goverment payroll for decades. Another career politcian from Texas.

  • Kenny

    Bernanke purposely caused the recession by raising interest rates.

    He did this to quell inflation, specifically the price of oil. He was well aware high unemployment and a housing crash would be the result.

  • I am inclined to agree with Alice, above:
    Bernanke is doing the ONLY thing he can to
    keep the wheels turning on the huge U.S.
    economy. He knows he is destroying it, but
    it’s really not his job to worry about that.
    His job is to keep the engine running. He is
    doing it, but he knows, as does everyone, that
    it must all crash down at some point….In a
    way, you can’t blame ‘ol Ben Shalom: the
    problems, the crime, the greed, the shams,
    started long before he took office.

  • William

    Read WATERS FLOWING EASTWARD and you will understand this.

  • The Unicorn

    …..wolves in sheeps clothing…

    I feel whats going on is a basiclly a run on the banks
    1)the FDIC increased its coverage to 250k
    2)printing $$$ like theres no tomorrow
    3)Interests rates at..0%
    4)high unemployment
    5)almost impossible to get a loan unless your “To Big To Fail” Hedge Fund,or a Large Corp.

    Just a big feeding frenzy

  • Davidm

    I have studied Bernankie and I believe he really believes this dribble. He absolutely believes the Fed has done a great job with inflation. He believes the core inflation rate is the “real” inflation rate. He seems to want congress to “make a long term plan” for the deficit. Ie set out some nebulous abstract plan not really do anything.

    The most amazing thing he believes is that he can totally control the economy by printing money and screwing with the interest rates. If you listen carefully to him, he views these Fed actions much like driving a car. QE2 is the gas. Raising interest rates is the brakes. He is convinced this works and it does not create inflation or horrible misallocations of capital and bubbles. He must have been brain washed at Harvard with those liberal egg heads.

    It is amazing someone who has studied economic history is not concerned with debasing the currency. But he has been convinced it that is just antiquated thinking. He thinks anyone who does not agree with him is just stupid and uneducated. His arrogance is incredible and scary.

    Where did we get this guy? God help us all. He is going to help Obama drive the economy over the cliff.

  • WeHaveASoul

    Hi there. I’d like to share my point as a Russian Federation ordinary citizen.

    The official “economy growth” reports here in RF are faked big time and i knew it because due to my work i can see real raw, unadjusted numbers. The corruption situation is hardly improved since 90’s economic collapse. The lying official become so ordinary phenomenon here that it does not impose any worries anymore.

    The Russian economy is weak and president dispatched the ministers to hold on the inflation whatever cost. So what the president did first? He banned the wheat exports, canceled the auctions. This alone helped to drop the wheat price to 60% of the global market price tag. Mind you that it is a normal market reaction for a weakened economy. Just pretend Australia, South America and other would follow. They could because the food prices is absolutely mad and keep rising. This rise does not make any good to food exporters because it is fueling the local inflation and local food prices rising sharp as well. So the major exporters, every major food producer (not a paper money speculator) could close exports to stop the price rising for internal consumers. Now i’m asking you guys, do you really understand WHAT is going on and what would happen next?! I REALLY hope this would not happen, but i’m aware of the forecasts the same hot summer will return, there would be wild fires again. Hope not, really do. Bernanke’s “the inflation in those countries is being caused by their own central banks” is a big lie! The Russian Federation ministries are walking upside down over the otherwise balanced budget guessing how to stop the inflation by market means. The inflation is scary already and forecasts are dim. The our so called “emerging” economy still barely leave the low crisis point.

    To my the foreign man understanding Ben Bernanke is purposely deceive the mass listener. When you think, i mean american folks, that you are the only Bernanke listeners you are wrong. There is a lot listeners and a lot of experts worldwide analyzing his words. No way i’m expert but telling you, we live in unfair world, the world of power greedy indiduals and speculators. And no one knows the way out. Once started, this “free trade” and “democracy” brain washing machine become unstoppable. The policing worldwide become stronger then ever. You may talk talks but it does not really change anything. You will choose the “right” president at the “right” day meanwhile the rich become richer and the poor become poorer. All we can see is only that we are allowed to see, the masquerading TV show.

    I know Obama ratings is dropping along americans, but to me he is okay. At least he does not bombed the shit out Iran yet. I think he just knows more then he tells you. There is no such thing as the wrong president. There is a society that can be very very ill. Whoever comes to president chair he would fall to the same frustration and loss.

    Okay, so why B.Bernanke is deceiving us?
    Quite for some time China declared the full scale economic war by devaluating its currency and subsidising the exports. And it worked out beautifully. The mindful observer knew it long before theeconomiccollapseblog. How the China end up in WTO is beyond my understanding. I see the Quantitative Easing is the strike back to fuel the inflation in emerging economies. The poisonous secretion of the dying world economy, no one wins.

    I’m just sharing my honest opinion and does not mean to offend someone’s feeling. Not the best ever English speaker either so bear with it.

  • Davidm

    The FED operates to create an environment where the big banks can thrive and make huge profits. The Fed is owned by the Banks. On a bad day of crisis you never have to wonder who the Fed is protecting. Bank Bail outs, to big to fail is acceptable, multi-million bonuses, 59% interest, the Fed being in charge of all new bank regulations. Talk about the fox guarding the hen house. The big banks run our country and have the politicians from both parties in their pockets. They are the source of more human suffering in this country than any other evil.

    Has anyone thought about what a death grip the Fed has on our economy?Try to get rid of it and they could send the economy into a collapse in just a matter of days.

    But if our country ever has a chance to recover we will have to get rid of these big banks and the Fed. God help us.

  • L I A R !

    Ben Bernanke and his associates all know the US government is bankrupt and the US economy is going to collapse. This organization is just keeping the ship of state afloat until they are all on lifeboats loaded with as much wealth as possible.

    In the meantime, Ben Bernanke, speaks from his lifeboat to passengers on the Titanic and tells them the ship is just correcting and will soon resume full speed ahead.

  • The whole 2008 stockmarket collapse with housing bubble was just a reason to bail out the gov. They had 2 trillion that had to be refinaced an also the chinese wanted there money too. There only have $800 billion now in treasures. An also the greatest transfar of wealth by the gov to now own your house. since you dont.

  • PaulF

    impeachRonPaul: “Bernanke is okay, Greenspan and Bush ruined the economy for decades.”

    In all seriousness, are you perhaps 15 years old? You should really not be commenting on things you clearly have no understanding of whatsoever.

    But we see from other posts why you hate Ron Paul: he happens to be a Christian, and believes that the unborn should be protected, something no athio-fascist can stomach!

  • impeachRonPaul


    I am against fascist like Ron Paul due to his contempt for personal freedom. He wants the state to dictate how your family should live.

    You seem like another one of those christians that want to force your lifestyle on everyone.

    I understand the economy a lot better than you and your fascist gynocologist career politcian Ron Bigot Paul!

  • Lang

    The day will come when all will see the truth. Unfortunately it will be too late to avoid the slaughter.

  • Mike

    Want to solve the economy?

    Here are a couple ideas for you:
    1) Quit printing money, that didn’t work in France in the 1790’s or in Germany in the 1920’s or in China in the 1940’s.
    2) End the Fed, the Fed literally controls the economy, if they want a depression they will create one, just like Ben Bernanke admitted the Fed did in 1929. Give the power of money back to the people as Thomas Jefferson would want it.
    3) Pass an amendment forbidding the U.S. government from borrowing any more.

    But in a realistic point of view, none of that is ever going to happen so buckle up and tighten your belt.

  • Thank you Frankenstein Government and the other derivative hawks. You are correct, derivatives are the economic weapons of mass destruction, as Buffett said.

    I blame Reagan for all this. Reagan demonized all government regulation. This is the result. Too bad he doesn’t get the blame.

    “Keep in mind that the total U.S. national debt did not surpass 1.5 trillion dollars until the mid-1980s.” Thanks to Ronald Reagan. The deficit, which stood at $74 billion in Carter’s final year, ballooned to $155 billion in Reagan’s final year. In the words of Vice President Dick Cheney, “Reagan taught us deficits don’t matter.” Really? Why Reagan is remembered so nostalgically?

  • Davey Jones

    Ben Shalom is troll, a liar and thief-going along and getting along with the looting of our nation and future.

    He’s a criminal who has secured a place for himself in the NWO of unified currency and world government.

    Bernanke AKA Douchebag

  • Tel

    Just thought this article would be incomplete without Ben’s latest effort:

    The grain price hikes put inflation center stage as Federal Reserve Chairman Ben Bernanke addressed the U.S. House Budget Committee. Indeed, within minutes of his address, Bernanke fielded a question from Rep. Paul Ryan, R-Wisc., on the issue. Bernanke responded that inflation “made here in the U.S. is very, very low.”

    Something to think about next time you are down at the local store buying food.

  • Davidm

    Our economy is terminally il with all of these problems. Bernanke actually believes he can revive it by continuing to pour fake money down it’s throat. It is insane. It’s like a doctor trying to treat a terminally il patient by pumping heroin and pain meds into the IV. Then he sits back pleased and proud as the patient moves around intoxicated by the dope. When the patient continues to spiral down, he just pumps in more dope.

    It’s getting close to time to get the hell out of Dodge.

  • Suetonious

    Let’s be real. Ben Bernanke is not an idiot. Far from it. He’s a smart guy. But he’s been given an impossible job. His bosses have told him that he has to explain how a gang of armed masked men taking a buncha money from a bank and any unlucky passers-by on the street, are actually security forces moving money to some desperate sub-branches that need to demonstrate solvency to the Market, else there will be no Christmas, nor Easter, nor Valentine’s Day.

    The massacre of public finances continues…

  • Tom Nacey

    Three possibilities: Liar, Lunatic, Incompetent.

    You forgot the best and most real probability, Employee! He was hired! Sure, he goes through a ceremony and he has a title, so what. When you go to a fast food outlet the employees are directed to say ridiculous things to you, like “Can we supersize this for you?” The McEmployee doesn’t say this because he thinks it is good for you. He is reading from a scrip (if he wants to keep his job). Remember that the FED spokesman (with the fancy title of chairman)is selected by our president from a very short list handed to him by the bankers. It is easier to make sense of this if you imagine Bernanke, Obama, Bush and others as puppets like the old Howdy Doody show. They are all artificial characters playing their stage part and all operating on strings. When you watch a good puppet show you concentrate on the staged action, characters, and story line. But as soon as you stop thinking of them as real people, then you get curious to look behind the curtain to see who is pulling the strings.

  • ronkie

    ALL economists are in this catagory. About 50% less accurate than the weather forcasters.

    While I love the USA (am Canadian, but spend 50%++ of my time down there on business and pleasure, tons of American friends, etc.) it is scary how BAD things have become.

    To my American friends I say: 1. Buy Silver (small demoninations to barter with). Buy a year’s supply of Wheat to grind yourself (it stores for up to 10 yrs in 5 gal pails). 3. By bullets – the real new commodity. 4. And as soon as possible, come up here and have the NRA installed in OUR lying criminal government too. (most folks do not understand that Canada is merely a 3d world country with great press releases. Our dictators actually get voted into office, eh!). ShXt heads all.


  • Gary2

    Michael-this post simply states the obvious.

  • John

    Yes he is just an employee and of the Bilderburg group ect. Just doing as he is told. I watched him on his last 60 minutes interview two times and his voice cracked a couple of times like he was scared. Probably is, but of who?
    Your points are taken but I prefer to look for the managers of this franchise, and they are truly frightening. Besides as long as he says his lines and pulls the levers he stays alive. Thats how it works.

  • mondobeyondo

    Lest we forget…

    Ben Bernanke was Time Magazine’s “Man of the Year” in 2009. Hilarious.

    One more round of quantitative easing, and he’ll get the Nobel Prize for economics. Why not?! The guy’s a Keynesian genius!

  • The Unicorn

    Ben Bernanke is the front man for the money changers while they are having a feeding frenzy gorging themselves on the sheeple.When theres nothing left but bones the Vultures=Goverment will move in to finish the job.Then there will only be the muffled screams for help as the Elite praise the Constitutions and remind each other how wonderful the right to free speech is.

    Get out of debt,prepare,organize and you should be ok.

  • signalfire

    Maybe the real problem is what I see displayed right here, in the comments. I’m presuming you’re all adults, you all attended school, and you’re all well read enough to have found your way to this blog. But the majority of you cannot spell, cannot write coherently, cannot use punctuation, etc. Oh, and then there’s the very large subset who spend way too much time with the bible (written 2000 years ago by people who thought a plow was high technology, and the supposed work of a god who neglected to warn people about germs, who seemed to think the sun circled the earth, and who liked to kill millions of people for disobeying his psychotic whims…).

    Why is all this important? Because if you were not paying attention in school, you probably are not paying attention now. If you never learned to think critically, now is not a good time to start. If you cannot spell the simplest of words, how intelligent do you really think you are? There is nothing wrong with Ben Bernanke ***************; we need a revolution and we need the people who have created this mess to suffer the consequences. And we need an educated populace to understand the true nature of our problems. You are spending way too much time watching teevee and ballgames and buying superfluous junk and not enough time truly understanding our predicament. When the day comes that you have no food, like 1/3 of the world is now facing, maybe then you will realize your lifelong propensity to behave like spoiled children.

  • randy p

    signalfire, your verbosity is commendable.
    Do us a favor and share your plan of action.
    Some of us do lack critical thinking skills,so maybe your wisdom will truly be appreciated regarding said problems aforementioned

  • SolderFire

    SignalFire, Please leave out your obvious and ignorant bias regarding the Bible, God and History. This is not helpful to the overall discussion and shows the extent of your bias toward religion and those who practice it.

  • Lisel

    Can you please stop referring to this banking cartel as the “Federal Reserve”. It is nothing more than the money printing factory for the banking elite, it is the Fiat Ripoff!

  • Peter Carson

    To Ronkie in canaDUH?.
    As a fellow citizen of canaDUH?, I agree with your political POV, but would instead frame the nature of all politicians generally with few exceptions as : lying lawyers, thieving accUntants, self serving scumbag sociopaths and psychopaths.

    As an alternate POV to solution, I do not believe there is any merit to paying off any debts, but to instead go much, much farther into debt as quickly as possible, which I explain as follows :

    Firstly, the more indebted common people of any nation are – the more power we have over bankstering and political psychopaths.

    Secondly, there is little doubt amoung people of reasonable intelligence who have paid attention to world economic affairs for the last 3 – 10 years – the entire fiat currency system is doomed to capitulation.

    Thirdly, WHEN, (not if) western economies implode, possibly later this year or 2012, as hyperinflation besets the entire fiat planet – it will be too late to take advantage of any financial powers which commoners can easily exploit now – TO MAKE SURVIVAL PREPARATIONS.

    Fourthly, The way I see it, an increasing number of commoners are realizing we are at a cross-road, where we can make choices between allowing banksters to intentionally implode the entire world financial systems on us in ways which are singularly beneficial to only them, OR commoners can intentionally implode the world financial system on banksters in ways which are strictly advantageous to only us.

    For example, imagine how people in the Middle East, Ireland, Greece etc would respond in hindsight to their present circumstances, IF they had been forewarned to exploit what little time was at hand to liquidate and or leverage assets, convert same into stores of food, sundry items, medicine, personal protection eqt and skids of ammunition – rather than pay banksters ?
    I believe they would have dumped on banksters.

    Ergo: Time of of the essence for SOLUTION 2011
    1. Do a complete analysis of all personal assets, both liquid and illiquide which can be leveraged by taking out home equity loans etc. Sell the house, rent and amass cash.

    2. Analyze personal requirements to survive, including everything from food and water to medicine personal protection equipment and barter items.

    3. Sell or leverage all personal assets ASAP to raise capital to acquire inventories of goods and equipment needed to sustain family members during extended periods of calamity, AND DO SO ASAP – WHILE GOODS CAN BE EASILY SOURCED AT LOW PRESENT COSTS – BECAUSE ONCE THE $HIT HITS THE FAN SUPPLIES WILL DIMINISH RAPIDLY AND COSTS WILL ESCALATE VERY QUICKLY.
    Include a position in silver bullion / coins.

    4. NEVER EVER ATTEND ANY PROTEST RALLY’S FOR ANY REASON – but instead quietly protest from the comfort and safety of your livingroom with family and friends of similar mind. Form local communities pledged to stand together and to watch-out for one another.

    5. JUST SAY NO. without announcing intentions to any debtor, simply stop funding payments to all, including credit cards, mortgages, and all forms of government taxation.

    6. Wait.

    There will be a critical mass effect which transpires across north america, the same as is already fomenting across Europe, N Africa and the ME – which I predict will hit a tipping point when as little as 15% – 20% of commoners decide to collectively say : NO!!!

    It is reasonable to expect all services to shut-down, including the internet, gasoline, electricity, heating fuel, food, water et al.

    Because MSM news is not broadcasting stories about any of hundreds of millionaires who are refusing to pay banksters, you may not have noted this movement is already well underway.

    With approx 3 million American mortgages in foreclosure, and another 10 million more ARM mortgages in process to reset interest rates between Q2 2010 and Q3 2013 – the day of reckoning is near. YOU CAN CHOOSE WHETHER TO BELIEVE CONCLUSIONS OF MANY ANALYSTS WHO CLEARLY STATE THEIR BELIEF : OVER 90% OF ARM MORTGAGES WILL DEFAULT OR PEOPLE WILL SIMPLY REFUSE TO FUND UNDERWARTER PROPERTIES AS A PURELY FINANCIAL DECISION TO STOP THROWING AWAY GOOD MONEY AFTER BAD.

    It would therefore appear MOOT – N AmeriKKKan financial markets will be the final straw which IMPLODES what is left of UNWORKABLE, PSYCHOPATHIC, PREDATORY WORLD FIAT SYSTEMS.

    Question is : Which side of this crash do intelligent commoners want to be on – because it takes no genius to see all the financial tsunami’s which are about to crash ashore ??

    If what I have written seems reasonable, it is my suggestion for readers to visit :, which offers a series of preparation templates on its free site.

    Good luck and best wishes.

    Peter Carson

  • fuckbanksters

    End the FED!
    Withdraw your money from big banks!

  • ralbol

    no, ben is not incompetent, he is just serving his shareholders (no, not the americans, nor america), the cabal of private banks constituting the federal reserve system

    to do that he (and geithner) must spin a diversion, viz
    “We do not want to default on our debts. It would be very destructive.”

    read: our TBTF member banks would no longer receive (not earn) the interest on the national debt, nor the money clipped from the economy by way of inflation

  • killben

    Bernanke is the biggest liar, most incompetent lunatic in the world. Read the last sentence again .. you will find shades of Hitler here .. not the physical kind but the economic kind.

    This guy methodically destroys people economically with his ill-conceived, morally hazardous policies .. butwhat else can you expect from a guy as described above.

    So you need to blame Obama for not having the backbone to sack this guy .. when he blackmailed him with me or else (markets will tank).. Obama should have had the guts to call his bluff. Unfortunately he did not and we had this a%^&^$# foisted on us for another 4 years.

  • Winston Smith

    Notice, they construct a dizzing system that no one can fathom, then appoint themselves deciphers of said system, great job security….the hidden hand of the market, pseudo religious terminologies,etc….hidden hand becomes the gloved iron fist…..

  • I wish our leaders would have listened to Thomas Jefferson and the founders of the Constitution, which President Obama swore to uphold in theory, yet completely ignores in practice.

  • Bo

    Wow, this guy just has no idea what he’s talking about.

  • Heidelberger Fourteen

    This is a 3 yr old article and it simply proves that Mr. Bernanke is still just a “mouthpiece”.
    I think he knows full well what’s going on. He is an educated person with as much common sense as the rest of us. He is simply ‘compliant’; he says what he is “told” to say by the “Money Barons”/Big Bank leadership.

    He makes millions per year to be the “scapegoat” when the thing finally collapses.

    It simply goes much much deeper than that (or should I say much “higher” than that)

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