Posted on 02/07/2011 9:24:28 AM PST by FromLori
Is Federal Reserve Chairman Ben Bernanke stoking inflation? Of course he is. Anyone with common sense knows that if you give $600 billion cash to the banks with no qualifications -- as he did with the second round of quantitative easing -- they will use it to speculate in the markets. JPMorgan Chase (JPM) just bought $1 billion of copper.
Bernanke's fatal mistake was that he placed no restrictions on what the banks would do with his $600 billion. If you opened the banks' books, you can bet that they've invested in commodities, currencies and foreign equities and bonds.
What Bernanke should have done was to sit down with the bankers and say: "Look boys, I'm giving you $600 billion, but you must lend it to U.S. businesses to stimulate our economy. None of this money is to be used for speculation or gambling in the markets." It's not too late to do this because QE2 runs until June.
But for Bernanke to say that inflation is not his fault is just nonsense. The idea of the $600 billion stimulus was a good one but it was botched from the beginning. You simply cannot give out $600 billion and let the bankers have a field day. That policy certainly is not helping to create jobs.
If you are running the largest central bank in the world, you need accountability. This, Bernanke does not have in QE2. When will we get a report on exactly what the $600 billion was used for? That's what the American people and leaders around the world want to know.
(Excerpt) Read more at bloggingstocks.com ...
Oh, ok that’s good enough for me, move along people nothing to see here,
lol I bet he wishes we would move along and he doesn’t care if it’s to a soup kitchen either.
That's putting it quite mildly.
That's the way the Chinese do it. It just causes speculation in the lending markets. That might be better, but let's be realistic--forced loans to designated sectors of the economy eventually lead to bad loans in those sectors.
We know this is the case as banks tightened their loans for business and private investments...plus just following the banks investments since then shows they had no intention of loosing their belts to the common man...rather saw a hand out and ran with it on the world sstage, and continue to do so today.
I don’t think it matters whether they speculate with it, loan it out, or just have a $600 billion bling party. Creating $600 billion out of thin air is going to cause inflation.
Inflation causes according to Helicopter Ben:
1) Sarah Palin’s Facebook page
2) Greedy corporations hoarding money
3) GW Bush insane spending
4) Jerry Jones Super Bowl seating mishaps
5) Cow flatulence causing climate change
6) Glen Beck’s apocalyptic program
7) FoxNews is lying about economic news
8) Subway Jared being mistaken for Tuscon Jared scaring people from shopping
9) Wealth not spread equal enough
10) Not enough government regulation on economy.
Bernanke was obviously absent during the econ 101 lecture about what happens when too many dollars chase too few goods and services.
Inflation, what inflation? Social security checks from the government say there was no inflation.
NOT GUILTY!
Err . . . What was the charge again? Not that it matters.
“That’s putting it quite mildly.”
Thats for sure. Soon they may see Americans wanting to over throw the government. With our middle class rapidly being wiped out they are creating a growing underclass. People are waking up to Banana Ben’s tricks we know he is supporting the Banks and obama’s spending by monetizing our debt at the expense of the citizens.
“[L}et’s be realistic—forced loans to designated sectors of the economy eventually lead to bad loans in those sectors.”
Oh, come now! It works just fine for the Soviet Union and COMECON. Oh wait . . .
I completely agree well said.
Those were the authors words I would say how about not doing it at all then? All he is doing is giving money to the banks to invest and make more money at the expense of the savers and people in general who have to pay more at the store. He is devaluing our dollar plain and simple and building up the banks who were the cause of our economic crisis to begin with.
Yes!
It's stupefying that anyone could think anything else. Actually, everyone -- Bernanke included -- knows that has been the goal all along. The ruling class sincerely believes that economic growth cannot take place without inflating the currency.
And it's important to remember that the ruling class doesn't mind inflation one bit. After all, they get their hands on the new money before prices have had a chance to rise. The profits they make with it more than compensate for the higher prices they'll have to pay later.
It comes back to one thing, it is an absolute fail when the gubermint tries to pick winners and losers. Give that 600B back - nay, don't take it in the first place - and watch the stimulative effect actually materialize.
I know. I was responding to his words, and you were the original poster. I wasn't aiming my comment at you.
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