Posted on 10/20/2009 6:09:00 PM PDT by blam
Bernanke Gone Berserk! Bank Reserves Explode! Fed Money Printing Gone Wild!
Interest-Rates / Quantitative Easing
Oct 19, 2009 - 08:18 AM
By: Martin_D_Weiss
Martin here with the most shocking new numbers I’ve seen in my lifetime.
My conclusion: Fed Chairman Bernanke has dumped so much funny money into the U.S. banking system and has done so little to manage how that money is used, the fate of our entire economy has now been cast under a dark shadow of doubt.
This is not conjecture or exaggeration.
Nor are the underlying facts subject to debate.
They are blatant, unambiguous, and fully supported by the Fed’s own data …
[snip]
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Interest-Rates / US Interest Rates
Oct 20, 2009 - 03:06 AM
By: Andrew_Butter
The debate about whether it was Alan Greenspan’s “fault” will continue for generations, the “other side” summed up their position nicely in a quip that came up in the debate about whether to let the Fed have more power, “ That’s like buying your teenager a sports car after he wreaked the family saloon”.
Greenspan did point out at one stage that with $100 trillion of debt created by the private sector of which $20 trillion was “manufactured” between 1998 and 2007 by securitization of assets in USA, something that the Fed had, or elected to have, no control over, what the Fed did or did not do to with the base rate was largely irrelevant.
But the Fed did have a mandate to ensure financial stability, what just happened was not “stability”. Even if they did not perhaps have the tools or the authority, they should have either got the tools or got out of the kitchen, in other words if Greenspan “saw” what was going to happen he should have made a fuss, got the tools, done something, or resigned.
[snip]
Trading for beads?
Well, Bernake is a clown, no doubt, but Market Oracle is the place I go when I want to feel suicidal. They routinely have me convinced that I have 7 minutes to live.
Well, Bernake is a clown, no doubt, but Market Oracle is the place I go when I want to feel suicidal. They routinely have me convinced that I have 7 minutes to live.
Soooooooooooooooooo...do I suck on the end of my 9mm now or empty my bank account and buy as much potted meat and MRE’s as I can get????
You can get a 5% fixed 30 year mortgage.
Highly recommended.
“You can get a 5% fixed 30 year mortgage.”
Well since the value of my home has dropped 50% in the last 2 years I don’t think I’ll qualify for one of those.
The problem is the Fed’s mandate CANNOT be carried out unless it’s operations are politicized, because Fed policy alone does not cause the only sources of major policy interventions in the market economy.
Tax and regulatory policies exert as much artificial stimulus, and drag on the market economy and in order for the Fed to pretend it can steer the economy it must either go along with (assist) the political forces (tax and regulatory policies), or go against them. It cannot ignore them, because it cannot provide “steerage” to the economy by simply letting go of it’s own levers.
Tax policy can greatly hurt the saving rate, which affects interest rates, which affects the economy and yet the ill affects from the savings rate are simply supposed to be countered by so artificial Fed action to offset the ill affects of it. However, it does not work; never has. The artificial - tax policy induced - low savings rate cannot be corrected by an offset somewhere else in the economic stream, without being an action which simply treats symptoms derived from that low savings rate and creates a long-term condition with long-term consequences.
The Fed’s ability to maintain a stable economic growth rate is a phantom chasing bad political decisions that damage the economy in many ways outside of the Fed’s control.
The Fed’s creation of an excess money supply is nothing other than the cumulative affect of its attempt to do what it cannot do - “fix the economy” against all that the politicians do to harm it, without the ‘fixes’ leading to new problems.
Yep - make sure your debt is fixed - buy some gold... put in a garden... if you need to buy something that’s manufactured overseas - it’s cheaper now than it’ll be in the future... None of that “sucking the end of my 9mm’ stuff - we need each and every one of us to get through this... That included YOU, Irish.
- buy some gold...I want to badly...but sometimes wondering if the Billy Mays radio commericals on Rush, Hannity and Beck are leading me to that :)
put in a garden...Hell, you can't get me to eat my veggies now...I'll do squirrel and fish from the pond behind my house before I grow those nasty veggies.
...if you need to buy something that’s manufactured overseas - it’s cheaper now than it’ll be in the future... I spend more time in Walmart now then I do my own bathroom...does that count?
None of that “sucking the end of my 9mm’ stuff - we need each and every one of us to get through this... That included YOU, Irish. Bless your heart...that was sarcasm...as a former Marine, we know the gun (yes, I called it a gun) never points backwards.
GOPJ, we do need each other...Respectfully, You left out one thing: Buy a Ham Radio...I have a strong feeling we may need it soon to continue to fight the good fight!!!!
Thanks for being here for me...Count on the same from me!
Thanks Irish.
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