Sunday, January 29, 2012

The Ben Bernanke Scheme

Ben Bernanke, Chairman of the Federal Reserve, says: Welcome to Japan! Yes sir, his idea to “fix” the economy is to not let the free market work, which would be impossible since these USSR-type central planners refuse to allow a free market to materialize, but rather they keep doing what has already failed. In other words, he will employ the Japanese version of “easing,” which is simply to keep giving the banking mafia whatever it wants.

During Chairman Bernanke’s press conference, Mr. Bernanke was asked how he thinks the savers in our country feel with ZERO interest rates. That is to say – How do the “little people” think it is going when they receive NO interest payments on their savings, while at the same time PAY 30% interest on credit cards.

The Chairman’s answer was almost “Who cares.” In fact, he may have said that, but the following is what  He said, “If I don’t make the savers among us rescue the banking mafia via zero interest rates, savers won’t be able to save…so who gives a damn about grandma and grandpa’s fixed income and saving accounts. I have to rescue my banking friends first. Moreover, I don’t give a rat’s ass how long this will take – I will give the banksters zero percent interest rates (ZIRP) for as long as it takes and if the elderly and other savers go broke – who cares. Once my bankster friends are back to the good life, I will raise interest rates – slowly – and the savers of the USA will make a few cents. Until then – tough luck.”
In the FOMC statement and during the press conference, the Fed said that the banking mafia will enjoy ZIRP for at least another 3-years…until 2015 – maybe longer. Like the Japanese central banksters, the central banksters will continue doing what doesn’t work, because all they know is failure – and they’re good at it.
Here is how well the repetition of failure worked for Japan. The USA has a “lost decade” of no growth in equities as shown in the 11-years , monthly S&P500 Index chart ; however, Japan is on 22-years of no growth and it is getting worse. Why are US politicians determined to allow the central banking republicans manipulated clowns take us down the same path?
Again and again I have to keep reminding myself that most portfolio managers, as well as individual investors, firmly believe that not only can the US economy grow its way out of its current mess, but that the US economy has already begun that process.
The fact that the Fed continues to create $100 billion of new money each month to support the economy is not as important to them as is the cumulative 60% growth in the federal deficit since 2008. Also irrelevant is that take home pay net of inflation is and has been declining on a year over year basis for the past several months

1 comment:

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