Wednesday, March 5, 2014
No we're not talking about President Obama or Mr. War on the 'War on Poverty' former Republican VP candidate Paul Ryan
We're speaking of 'Bastard' Ben Bernanke.
Such a horrible system we live in -- a person in public service from President to Fed Chair gets $250k for a year of mismanagement and/or ineptness then once out of office can generate that income in a measly 45 min speech..
Really? Wow.. Sorta like needing to pay a dietitian to officially be told that overeating and lack of exercise equals increased weight..
And why was the Fed and that filthy investor/banking ilk so overconfident?
Maybe it had to do with government always and we do mean Always coming to the rescue so that when one asset bubble popped, another was instantly created to fill the void so investors would always have a new game to play.
Had Lehman collapsed as a normal private business does and often has, the affect on the US economy would have been minimal.
Then those who really run things.. the Wall St inner-circle made sure things got as horrific as possible as quick as possible to scare everyone in the world so the politicians never sit back and let one of their own collapse ever again.
That's why TARP was passed so relatively quick without a read through and why AIG got bailed out for tens of billions rather instantly without any public investigation of its financial incompetence.
"Bernanke also said he found it hard to find the right way to communicate with investors when every word was closely scrutinized.
"That was actually very hard for me to get adjusted to that situation where your words have such effect. I came from the academic background and I was used to making hypothetical examples and ... I learned I can't do that because the markets do not understand hypotheticals.""
No they don't Benny.. They want everything spoon fed and Google mapped with precise directions how to make maximum profit with no risk or pitfalls of any kind.
~"I'm former Texas Congressman Ron Paul.. I spoke out on the Fed constantly but I never once did anything or proposed a piece of legislation to eliminate or even curb the Reserve...
And when Bernanke found he couldn't get too specific for fear the everyday Mom & Pop investor may actually benefit too from the insider information, he used dummy sources like at the WSJ to be his conduit to get the messages out to either relax or encourage the market.
A really despicable person...
Then again maybe that's just the title and requirement of the position..
But then again its a position he accepted and served voluntarily for eight years so the 'despicable' hat must be worn upon his bald head.
Such a powerful, monstrous entity the Fed is..
Later, Bernanke expressed the following little gem:
"Although we have been very aggressive, I think on the monetary policy front we could have been even more aggressive."
In layperson terms, the $4,100,000,000,000 ($4.1 Trillion) spent to prop up the global banking apparatus, US and foreign corporations and the global stock market from 2008 to the present was mere drops in the bucket compared to what he could have done..
""My natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person... The complexity though arises because in order to help the average person, you have to do things -- very distasteful things -- like try to prevent some large financial companies from collapsing...
“The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help. It’s a hard perception to break.”"
Everything about that statement drips with insincerity.
First its not the legal or any other mandate of the Fed to help the everyday person. The Fed was never conceived for that purpose.. It was meant to be a financial backstop for banks and the market if/when there ever was a collapse..
Prior to the Fed's creation in 1913, the last crash occurred during the Panic of 1907. Briefly expressed, the trusts which at the time were meant to be the bank and market backstop collapsed due to risky trading and over-extension..
The Fed was created with the ability to directly tap into the US Treasury directly and siphon off or create money from thin air whatever was needed to keep the matrix or financial system secure; a system where a few possess and retain most of the wealth as the masses scrounge for $7 to $30 an hour..
If Bastard Ben cared one iota about the average person he wouldn't have lowered interest rates to such a dramatic low that collectively between 2007-2013, US savers have lost $1.75 Trillion in unreceived interest so banks could borrow from one another at less than 1%.
And speaking of mandate, it is the Fed's responsibility to prop up all large financial corporations and it certainly does not do so while holding its nose. The nostril pinching occurs when the Fed Chair must lie and say its goal is reducing unemployment.
So yes its a hard perception to break that the Fed only cares of its own when the perception is wholly accurate. That is why everything is so orchestrated and telestrated to their own using special language only they understand.
The Fed also provided limitless liquidity to bank trading desks and financiers to skim billions from carry trades, effectively channeling the nation's financial resources to enrich its cronies, the top 1/10th of 1%.
And no amount of Bullshit from Bastard Ben Bernanke will change reality.
The good news is he's gone..
~ The $16,700,000,000 ($16.7 T) woman to be exact..
The bad news is his Vice-Chair, his #2 now leads the Fed and if you think Yellen is going to be any different in helping their own while government stands by with a combination of ignorance and impotence, you are in a daze.
Posted by Susquehanna at Wednesday, March 05, 2014