Posts in "Ben Bernanke"

By Megan Duffield at 12:35PM

Sep 14, 2011

Bernanke is Lost in the Dark

No tallies were added to the job board in August and President Obama will be stepping in to help with a proposed plan of $447 billion in stimulus money. The plan will provide for unemployment benefits, payroll tax cuts, infrastructure, and security cash so teachers, firefighters, and cops don't get laid off -- we can't have employees who aren't economically justified become unemployed!

Let me remind the readers here today that we are currently over $14 trillion dollars in debt and the government has passed numerous stimulus packages that most likely need to be renamed to avoid accusations of false advertising. As all of the failed policies pass us, one by one, the head of our central bank can't even seem to grasp what is going on around him.

Bernanke this week admitted to being puzzled about consumer spending. He stated:

Even taking into account the many financial pressures they face, households seem exceptionally cautious.

Seem? Isn't he supposed to be in touch with the economy and aware of why consumers aren't spending? I hold no PhD in economics, nor have I run any sort of financial institution, but I can say that when I see my personal finances drying up, I save my money. So when Americans see their country's balance sheet reach the height it has, while the government gives us no reason for new confidence in future fiscal conservatism, they protect what they have.

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By Lukus Collins at 5:24PM

Aug 10, 2011

Bernanke's Crystal Ball

The Federal Reserve announced yesterday that it would keep its benchmark interest rate steady in the 0-0.25% range through mid-2013. This breaks with longstanding Fed practice of avoiding specific timeframes in setting its policy. The Fed generally tries to strike a balance between giving investors signals about its future actions without backing itself into any commitment corners, so that it can react to changing market conditions. That balance has now been tossed aside in desperation. This move is supposed to inspire confidence in capital markets by signaling longer-term policy consistency.

Aside from the dubious nature of such a goal, a larger question looms: Can Ben Bernanke see the future?

If not, then why would he attempt to guarantee a steady interest rate for the next two years in the face of one of the most volatile economic periods in American history? Even from a perspective that accepts the Fed's role in the economy as necessary or beneficial, this two-year pledge is ridiculous and dangerous. It took barely over a year for the stock market to fall by half in 2008-9, and just two years to gain most of that back. Who knows what could happen in the next two years?

Well, evidently Ben Bernanke does. In addition to bald-faced central-planning hubris, this latest move demonstrates a new level of desperation on the part of the Fed, exchanging a (doubtful) short-term boost in confidence for a significant future unknown. If price inflation kicks in over the next two years, the Fed will either have to break its pledge, thereby undermining any remaining trust it holds in the capital markets, or hold to it, throwing fuel on the fire.

The Fed is playing Russian roulette with the American (and world) economy and I'm afraid there may not be any empty chambers.

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By Bonnie Kristian at 5:23PM

Jul 18, 2011

Bernanke vs. Paul in 4 Slides

(via)

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By Bonnie Kristian at 12:29PM

Jul 15, 2011

Don't look behind the curtain!

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By Ryan Ekvall at 5:35PM

Jul 13, 2011

Why don't they hold diamonds?

Federal Reserve Chairman Ben Bernanke gave testimony to the House of Representatives' Financial Services Committee for the semi-annual Monetary Policy Report earlier today.

Bernanke offered his usual optimistic view of the economic recovery stating, "The anticipated pickups in economic activity and job creation, together with the expected easing of price pressures, should bolster real household income, confidence, and spending in the medium run." The Fed Chairman also noted that he expects price inflation to remain low, in the 2% range, for the foreseeable future.

Chairman Bernanke Attempts to Make Friends Today at 2:15pm est

Chairman of the Federal Reserve, Ben Bernanke will hold a press conference immediately after his policy meeting with the FOMC. The press release was sent out unusually early today, prefacing the bullet points of the press conference that will be opening at 2:15 pm. The Fed is seeing a lower confidence across the board and is taking notes from England's central bank and providing more transparency, trying to escape the "behind the curtain" image they've held so tactfully over the past few decades.

You can watch the press conference live from the Federal Reserve's website.

The press release gave a glimpse into what we should expect from the Fed in the coming months. Many news sources are predicting a pull back on the QE2 funds. As it appears in the press release the $600 billion in emergency funds will continue to flow out of the Fed for the rest of the current quarter. The interest rates will stay at the steady, yet artifically low 0-.25% ... so no surprises there.

To continue reading visit SilverUnderground.com.

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By Brian Beyer at 7:50AM

Mar 22, 2011

The Regime's Shill is At It Again

Economic Shill in Chief, Paul Krugman, came out with a deserved but hypocritical criticism of the Maestro, former Federal Reserve Chairman Alan Greenspan, yesterday. He pens:

He’s the man who presided over an economy careening to the worst economic crisis since the Great Depression — and who saw no evil, heard no evil, refused to do anything about subprime, insisted that derivatives made the financial system more stable, denied not only that there was a national housing bubble but that such a bubble was even possible.

Krugman is trashing the man who followed exactly what Krugman thought was the solution to the economic slump of the early 2000's: inflate a housing bubble. While Krugman has tried to dance his away around this fact by saying it was merely "economic analysis," one quote, of many compiled here, stands out the most:

In time this overhang [excess capacity of capital equipment] will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. But it seems inevitable that there will also be a fiscal stimulus package.

A Cathartic Rant...

I know not to read something spouted by Bernanke or a Fed economist anymore because I'm likely to break my laptop in half. They have lack a fundamental understanding of economics; a fundamental understanding of the field to which they are considered maintstream "experts." Bernanke's recent statement, "My definition of the dollar is what it can buy," sort of exemplifies what I mean. He's too locked into his own ideas to understand that economics is more than numbers, and he's playing with people's lives.

Don't even get me started on Krugman.

Ron Paul's Texas Straight Talk: Toward Sensible Monetary Policy

In this Texas Straight Talk, Dr. Paul emphatically argues for increased transparency and accountability for the Federal Reserve. As the new chairman for the Monetary Policy Subcommittee, let's hope he holds their feet to the fire.

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By Bonnie Kristian at 11:34AM

Dec 8, 2010

Quotes from Mr. Bernanke

"The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost." [November 2002]
"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." [July 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." [October 2005]

And my favorite, from October 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."

Too bad he forgot about that. I'm sure it just slipped his mind.

Read the full collection of 30 such quotes here. Then, for those who do not struggle with clinical depression, ponder the fact that this man runs our money.

Originally posted on my own blog, here.

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