Bernanke Unmasks Obama’s Big Lie
By Mr. Curmudgeon:
Then Federal Reserve Chairman Ben Bernanke popped the big-lie bubble as he did with housing. “To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the [Federal Open Market] Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.”
What the heck did Uncle Ben just say?
Let me break it down in simple English: The Fed purchased $500 billion in mortgage-backed securities from Freddie Mac and Fannie Mae in 2008; in 2009, it spent $1.25 trillion doing the same; by November 2010, the Fed picked up an additional $600 billion of these junk bonds; oh, when Bernanke testified to Congress that “the crisis in Europe affected the U.S. economy by acting as a drag on our exports,” he floated secret Euro bank loans – later uncovered by the fiscal hawks at the libertarian Cato Institute – that totaled around $1.2 trillion; some estimate the Fed’s bailouts to central banks around the world is in the tens of trillions – but we won’t really know until Congress shows a little testicular fortitude and audits the beast from top to bottom; the Fed’s new plan will spend $40-billion-a-month collecting bags and bags of dead mortgage leaves and ramp up its “operation twist,” which pumps counterfeit greenbacks into the economy through the purchase of 10-year Treasuries – bringing the grand total of domestic purchases to $85 billion per month.
Hold on to your hats because this is the point: The high prices we see at the gas pump and the super market are way lower than they should be. The untold trillions of dollars pumped into the global economy should have triggered 1920s-style German inflation – where people needed wheelbarrows to carry a mountain of devalued cash to the market just to buy a loaf of bread.
That means America is in a deflationary spiral – economist-speak for DEPRESSION, and Bernanke will keep pumping greenbacks into the economy until he sees us pushing wheelbarrows of Monopoly money down the aisles at WalMart. That has not happened yet and Bernanke is in panic mode. That explains his new initiative to drop trillions of worthless dollars from high-flying, slow-moving dirigibles.
More than that, Bernanke’s announcement, it should be remembered, says one thing – and loudly: talk of Obama having saved the country from sliding into a depression is a lie. We are in one and Bernanke admitted as much.