Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Travis McGee
"Those were his very words, Elfman. Not mine."

Bernanke never said anything remotely like promissing to start tossing bales of money out of helicoptiers. You just made that up. You can't find it, can't show me. I thought you were more level headed that that.

If you're that nuts, I'm dissapointed. I'm not going to let you change the subject now by answering your misleading questions until you recogize that you can't find any words from Bernanke to that effect.

49 posted on 11/21/2005 5:34:40 AM PST by elfman2
[ Post Reply | Private Reply | To 48 | View Replies ]


To: elfman2
"Bernanke never said anything remotely like promissing to start tossing bales of money out of helicoptiers. You just made that up. You can't find it, can't show me."

http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm

The U.S. Federal Reserve Board

Remarks by Governor Ben S. Bernanke Before the National Economists Club, Washington, D.C. November 21, 2002

Deflation: Making Sure "It" Doesn't Happen Here

(You should read it all, but here are excerpts from his famous speech)

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But 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 essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

Fiscal Policy

Each of the policy options I have discussed so far involves the Fed's acting on its own. In practice, the effectiveness of anti-deflation policy could be significantly enhanced by cooperation between the monetary and fiscal authorities. A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money.

Of course, in lieu of tax cuts or increases in transfers the government could increase spending on current goods and services or even acquire existing real or financial assets. If the Treasury issued debt to purchase private assets and the Fed then purchased an equal amount of Treasury debt with newly created money, the whole operation would be the economic equivalent of direct open-market operations in private assets.

Wikipedia, internet encyclopedia

http://en.wikipedia.org/wiki/Ben_Bernanke

He gave a speech in 2002 entitled "Deflation: Making Sure 'It' Doesn't Happen Here" in which he discussed possible Fed actions to prevent deflation saying, "A money-financed tax cut is essentially equivalent to Milton Friedman's famous 'helicopter drop' of money." Further describing several options in the government's arsenal for fighting deflation Bernanke also said, "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 essentially no cost." These metaphors referred to the potential of the Fed to give money directly to citizens (as opposed to working through banks) as a last-resort possibility to stop deflation. Critics of Bernanke, calling him "Helicopter Ben," argue that he is too worried about deflation and too sanguine about its opposite, inflation.

Peter D. Schiff, Oct 28, 2005

http://www.newfuelnow.com/commentary/october2005/schiff1028.htm

"Helicopter Ben is No Paul Volcker"

(Excerpt)

Then there is the problem of propping up the dollar. With few exportable products creating demand for US currency, the trillions of dollars now in global circulation maintain their value only as a consequence of faith. For the last several years, that faith has in large part resulted from the near deification of Alan Greenspan. Whether justified or not, such faith will not simply transfer like a baton to Bernanke; it will have to be earned. Given the statements that Bernanke has already made with respect to the use of the invention of the printing press to create unlimited amounts of money at virtually no cost, his advocacy of the Fed doing whatever it takes to combat deflation, including the buying of long-term government bonds, stocks, real estate, and even consumer goods, such as automobiles, as well as his reference to dropping dollar bills from helicopters, which earned him the nickname “Helicopter Ben,” gaining the world’s confidence will not be easy.

50 posted on 11/21/2005 8:18:42 AM PST by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
[ Post Reply | Private Reply | To 49 | View Replies ]

To: elfman2

You need to quit spouting and start reading. Bernanke did say that. It's been quoted in numerous sources. Why do you think congress is so in love with him. They'll be able to spend and spend and spend with Bernanke running the presses.


63 posted on 11/21/2005 5:31:13 PM PST by hubbubhubbub
[ Post Reply | Private Reply | To 49 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson