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Wednesday, June 8, 2011

Is he drunk, stupid or lying?


Ben Bernanke had this to say at the International Monetary Conference yesterday:

"The U.S. economy is recovering from both the worst financial crisis and the most severe
housing bust since the Great Depression, and it faces additional headwinds ranging from the
effects of the Japanese disaster to global pressures in commodity markets. In this context,
monetary policy cannot be a panacea. Still, the Federal Reserve's actions in recent years have
doubtless helped stabilize the financial system, ease credit and financial conditions, guard
against deflation, and promote economic recovery. All of this has been accomplished, I should note, at no net cost to the federal budget or to the U.S. taxpayer."

Apparently, Dr Bernanke, is counting on the fact that most Americans can't read, don't bother to read, or don't understand what they read. For example, Reuters ran this story a few days ago:

Fed balance sheet hits another record size

Thu May 26

NEW YORK (Reuters) – The Federal Reserve's balance sheet expanded to a record size in the latest week, as the central bank bought more bonds in an effort to support the economy, Fed data released on Thursday showed.

The purchase was part of its $600 billion program, dubbed QE2, aimed at stimulating investment and economic activity.

The balance sheet -- a broad gauge of Fed lending to the financial system -- expanded to $2.759 trillion in the week ended May 25 from $2.742 trillion the prior week.

If not the taxpayer, then Who exactly is paying for all these purchases of bad debt the Fed is loading up onto its balance sheet?

Who paid for the other 5 trillion dollars funneled to the banks during the crash of 08?

How come nobody bats an eye when this public official lies to us in such a bizarrely bald-faced fashion?

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