B.S. Bernanke and The Never Ending Recovery

[planosteve]

Follow along, ladies and gentlemen, as the amazing tale of the U.S. “economic recovery” is presented to readers. This journey into the surreal begins with an obvious question: how was this Never-Ending Recovery created, which (supposedly) is already roughly twice as long as any ordinary recovery, and (according to the “experts”) shows no sign of ever ending?

Any/all close followers of the Never-Ending Recovery will have no problem answering this question. It was created through the stalwart “leadership” of the Federal Reserve, under the expert tutelage of B.S. Bernanke. He printed, and printed, and printed U.S. dollars at an exponentially increasing rate, never before seen with any paper currency – which did not immediately plunge into worthlessness via hyperinflation. And those are only the $trillions which Bernanke admits printing.

More-specifically; B.S. Bernanke created all of this funny-money via the utterly meaningless euphemism we now know as “quantitative easing”. What does “QE” really mean? It means simply conjuring paper currency (out of ‘thin air’) which is not directly or indirectly “backed” in any manner whatsoever, and so cannot possibly have any value.

This explains what was done by the Chairman of the Federal Reserve, prompting the next question: why did he do it? The explanation here is “simple”, indeed utterly simplistic. B.S. Bernanke printed these $trillions and $trillions of new USD’s (more than $10,000 for every man, woman, and child in the USA) to “pump-up asset prices” in U.S. markets – primarily U.S. stock markets.

He (artificially) pumped-up these asset prices in order to create what he called “a wealth effect”. This would then make Americans feel wealthier (through artificially inflating the value of their assets), and then they would (supposedly) go out and spend, spend, spend – resulting in “the U.S. economic recovery”. Unfortunately there are numerous problems (and questions) with this particular piece of Bernanke B.S.

The first (and most-obvious) question is: why did Bernanke go this circuitous route of pumping-up asset prices with newly-printed dollars in order to make Americans “feel wealthier”. Why didn’t he simply hand every man, woman and child $10,000+? Two reasons.

The elementary answer here is that one can’t “make people wealthier” by simply printing-up and spreading-around stacks and stacks of worthless, unbacked paper currency. If it was possible to do so, Bernanke (and all the other central bankers) would simply print and hand out a million dollars per person, or a billion dollars per person – and then (supposedly) we would all be tripping over all the “new jobs” and “economic growth”. It doesn’t take any brains to turn the switch on a printing press from “off” to “on”.

So, to begin with, it is simply and utterly impossible to create (real) “economic growth” (and real economic prosperity) through such money-printing hocus-pocus. But that’s not the really absurd part of Bernanke’s lie that he “created a U.S. economic recovery” with all of his QE money-printing. To understand this requires answering the second part of the previous question: why did Bernanke pump-up stock markets, rather than simply (directly) handing everyone their “$10,000”?

B.S. Bernanke did not want everyone to “feel wealthier”. He only wanted the top-10% of the U.S. population (who own almost all that U.S. stock) to feel and be wealthier. And thus the full absurdity of this imaginary “recovery” is revealed. Recall the storyline.

Bernanke is pumping-up assets to create a “wealth effect”. He’s creating a “wealth effect” to get Americans to spend, spend, spend (and thus create jobs and economic activity). The problem with this ridiculous fantasy? The top-10% upon whom all this new “wealth” was bestowed were already very, very wealthy. In fact they have never been wealthier in the 200+ year history of the U.S. republic.

Obviously making the very-wealthy wealthier is the worst, possible use of a “wealth effect”. If Bernanke’s money-printing hocus-pocus could ever work; the people who would need to “feel wealthier” are the bottom-90% -- whose standard of living has plummeted by more than 50%, and who (in relative terms) have never been poorer.

But we still haven’t reached the depths of absurdity (and inequity) in Bernanke’s ridiculous myth that he “created an economic recovery” by printing trillions of worthless dollars and then (indirectly) handing it all to the very-wealthy. It is this top-10% that (in proportionate terms) spend far, far less than the rest of the U.S. population.

Again, for Bernanke’s money-printing hocus pocus to have had any possibility of doing what he claimed it was doing; all this money-printing would have had to been directed toward the bottom-90% (who would actually spend it) – and not the top-10%, who hoard the vast majority of every dollar they receive. Indeed, readers have already seen (on several occasions) the chart which proves that all of the $trillions printed-up by B.S. Bernanke has been a disastrous failure – the worst “policy failure” in the history of U.S. monetary policy.

Even more good stuff here: http://bullionbullscanada.com/us-commentary/26546-the-never-ending-recovery

[GFB]

So, on the one hand.."all this economic recovery is simply the Fed pumping money into the markets."

..which of course means...it has worked!

But on the other hand.."the Fed's pumping is just hocus pocus..

..which of course means..it HASN'T worked.

So, besides the fact that people who "think" like you are all over the map..

....what exactly IS or ARE the reasons that the economy has slowly improved.

..and if you're going to say.."it has not..it's gotten worse.."


What SHOULD we have been doing for the last 5 years to improve the economy?

[planosteve]

So, on the one hand.."all this economic recovery is simply the Fed pumping money into the markets."

..which of course means...it has worked!

But on the other hand.."the Fed's pumping is just hocus pocus..

..which of course means..it HASN'T worked.

So, besides the fact that people who "think" like you are all over the map..

....what exactly IS or ARE the reasons that the economy has slowly improved.

..and if you're going to say.."it has not..it's gotten worse.."


What SHOULD we have been doing for the last 5 years to improve the economy?

I think what you don't understand is that the stock market is a gambling casino. It is not the economy. Bernanke just reblew the bubbles and then beat it out of town before they collapsed.
There will be no recovery and expecting one will be like "Waiting for Godot". What there will be is another crash in the stock and real estate markets like in 2007/8.
Had the FED not intervened at the beginning of the Obama administration, he wouldn't have been there long because Republicans and Democrats are all Keynsians now. Obama would have gotten rid of him. There is no way the FED can ever act properly, it has to be eliminated like Ron Paul has preached for years now.

[GFB]

So, on the one hand.."all this economic recovery is simply the Fed pumping money into the markets."

..which of course means...it has worked!

But on the other hand.."the Fed's pumping is just hocus pocus..

..which of course means..it HASN'T worked.

So, besides the fact that people who "think" like you are all over the map..

....what exactly IS or ARE the reasons that the economy has slowly improved.

..and if you're going to say.."it has not..it's gotten worse.."


What SHOULD we have been doing for the last 5 years to improve the economy?

I think what you don't understand is that the stock market is a gambling casino. It is not the economy. Bernanke just reblew the bubbles and then beat it out of town before they collapsed.
There will be no recovery and expecting one will be like "Waiting for Godot". What there will be is another crash in the stock and real estate markets like in 2007/8.
Had the FED not intervened at the beginning of the Obama administration, he wouldn't have been there long because Republicans and Democrats are all Keynsians now. Obama would have gotten rid of him. There is no way the FED can ever act properly, it has to be eliminated like Ron Paul has preached for years now.

But you, like the endless parade of self proclaimed "experts" that write these articles..just tell us why you think the Fed is bad, and why they won't help..and why they HURT the economy.

Why do they never take the opposite approach, and tell us what needs to happen?

By the way, I think there are mountains of evidence to contradict that things are not improving..and what I think is really going on, is that you and your blogger friends are starting to learn a few undeniable things..and you don't want to.

So all you can do, is continue to recite mantras about "Keynesians" and fiat money.

The economy is improving..and the rate if improvement is accelerating.

[planosteve]

So, on the one hand.."all this economic recovery is simply the Fed pumping money into the markets."

..which of course means...it has worked!

But on the other hand.."the Fed's pumping is just hocus pocus..

..which of course means..it HASN'T worked.

So, besides the fact that people who "think" like you are all over the map..

....what exactly IS or ARE the reasons that the economy has slowly improved.

..and if you're going to say.."it has not..it's gotten worse.."


What SHOULD we have been doing for the last 5 years to improve the economy?

I think what you don't understand is that the stock market is a gambling casino. It is not the economy. Bernanke just reblew the bubbles and then beat it out of town before they collapsed.
There will be no recovery and expecting one will be like "Waiting for Godot". What there will be is another crash in the stock and real estate markets like in 2007/8.
Had the FED not intervened at the beginning of the Obama administration, he wouldn't have been there long because Republicans and Democrats are all Keynsians now. Obama would have gotten rid of him. There is no way the FED can ever act properly, it has to be eliminated like Ron Paul has preached for years now.

But you, like the endless parade of self proclaimed "experts" that write these articles..just tell us why you think the Fed is bad, and why they won't help..and why they HURT the economy.

Why do they never take the opposite approach, and tell us what needs to happen?

By the way, I think there are mountains of evidence to contradict that things are not improving..and what I think is really going on, is that you and your blogger friends are starting to learn a few undeniable things..and you don't want to.

So all you can do, is continue to recite mantras about "Keynesians" and fiat money.

The economy is improving..and the rate if improvement is accelerating.

I could recommend numerous books, but you wouldn't read them. I recommended an excellent new video, Century of Enslavement, that you can watch for free, but you didn't watch it.
http://www.corbettreport.com/category/videos/
The economy is not improving. If there are "mountains of evidence" that it is, what is it?

[GFB]

The economy is not improving. If there are "mountains of evidence" that it is, what is it?

Manufacturing..all important "earnings"..jobs..GDP.capacity utilization..inflation remaining tame..no matter where you look..things are improving..and at a better pace than before.

[GFB]

You recommend books and videos from people that are angry that the economy is improving.

I read data on what is really going on.

[planosteve]

You recommend books and videos from people that are angry that the economy is improving.

I read data on what is really going on.

Once again, if you believe the economy is improving and there is mountains of evidence, what is it? Just 1 mountain will do.

[GFB]

You recommend books and videos from people that are angry that the economy is improving.

I read data on what is really going on.

Once again, if you believe the economy is improving and there is mountains of evidence, what is it? Just 1 mountain will do.

I listed a few..manufacturing..up..capacity utilization..up..(that is utilization of wearhouse space)..the all important "earnings"..up..(CORPORATIONS ARE MAKING MONEY!!)..jobs..up..(over 200,000 created for quite a few months in a row..)..GDP..up nearly 2% annualized so far this year..even with the very poor first quarter.

..did you need them a THIRD time?

[planosteve]

You recommend books and videos from people that are angry that the economy is improving.

I read data on what is really going on.

Once again, if you believe the economy is improving and there is mountains of evidence, what is it? Just 1 mountain will do.

I listed a few..manufacturing..up..capacity utilization..up..(that is utilization of wearhouse space)..the all important "earnings"..up..(CORPORATIONS ARE MAKING MONEY!!)..jobs..up..(over 200,000 created for quite a few months in a row..)..GDP..up nearly 2% annualized so far this year..even with the very poor first quarter.

..did you need them a THIRD time?

Pretty small gains. But, that is with the FED pouring billions of fiat money dollars into the economy every month for years now. And when they stop or even slightly slow down like now, the economy will tank. That may be what is happening now.

[GFB]

Pretty small gains. But, that is with the FED pouring billions of fiat money dollars into the economy every month for years now. And when they stop or even slightly slow down like now, the economy will tank. That may be what is happening now.

Wait a minute..just a few posts back you and the article told me that the Fed has failed and will continue to fail..and even make things WORSE!

Now you're saying..things are better because the Fed is pouring money into the economy.

..and what happened to.."don't confuse the economy with the stock market."

[planosteve]

Pretty small gains. But, that is with the FED pouring billions of fiat money dollars into the economy every month for years now. And when they stop or even slightly slow down like now, the economy will tank. That may be what is happening now.

Wait a minute..just a few posts back you and the article told me that the Fed has failed and will continue to fail..and even make things WORSE!

Now you're saying..things are better because the Fed is pouring money into the economy.

..and what happened to.."don't confuse the economy with the stock market."

When the FED is pouring money into the economy it makes things better the same way a hit of meth makes an addict better. And every fiat dollar created makes every other dollar worth less. And eventually it makes the entire currency worthless. It's called inflation. You may have heard of it.

[GFB]

Pretty small gains. But, that is with the FED pouring billions of fiat money dollars into the economy every month for years now. And when they stop or even slightly slow down like now, the economy will tank. That may be what is happening now.

Wait a minute..just a few posts back you and the article told me that the Fed has failed and will continue to fail..and even make things WORSE!

Now you're saying..things are better because the Fed is pouring money into the economy.

..and what happened to.."don't confuse the economy with the stock market."

When the FED is pouring money into the economy it makes things better the same way a hit of meth makes an addict better. And every fiat dollar created makes every other dollar worth less. And eventually it makes the entire currency worthless. It's called inflation. You may have heard of it.

Yes..it's gone on since the beginning of time.

This country is successful..and continues to be..because wages and household networth keeps up with inflation..and usually leaves it in the dust.

A dollar is worth a fraction of what it was 50 years ago..and wages were a fraction back then of what they are now.

[planosteve]

Over 40% of the US population is on welfare because they can't afford food. The middle class has lost 1/3 of its wealth in the last 10 years. Real wages have been stagnet since the early 1960s. And you call that success???
Bring in the Loons!!!!

[GFB]

Over 40% of the US population is on welfare because they can't afford food. The middle class has lost 1/3 of its wealth in the last 10 years. Real wages have been stagnet since the early 1960s. And you call that success???
Bring in the Loons!!!!

The people are on welfare because we have a political party that has a stake in a substantial percentage of the population being dependent on the government.

Besides that..to quote Rush.."The Democrat Party needs a permanent underclass to survive."

..and you can't cherry pick the last 10 years to define the middle class..or any class.

[planosteve]

..and you can't cherry pick the last 10 years to define the middle class..or any class.

That one doesn't even make any sense.

[GFB]

..and you can't cherry pick the last 10 years to define the middle class..or any class.

That one doesn't even make any sense.

You said the middle class has lost 1/3 of it's wealth in the last 10 years.

I don't know where that figure comes from, but the middle class..like all classes..is doing better every day as the economy improves.

It's just like when you "cherry pick" certain years to demonstrate how well gold has done.

The cherry picked years tell us nothing..they are a snapshot..a carefully selected snapshot.

..and the period from 2007 until now has been an economic anomale..to say the least.

[planosteve]

Jeeze! Bob just posted the article a few days ago. It was from the NYTimes. You didn't read it? I guess maybe it wasn't on Fox News or the Limbaugh Show.

[GFB]

Jeeze! Bob just posted the article a few days ago. It was from the NYTimes. You didn't read it? I guess maybe it wasn't on Fox News or the Limbaugh Show.

It's not a question of disagreeing with the figures..

..it's that you can't determine the history of the middle class..or the Fed..or the ANYTHING..by the financial trials of the last 10 years.

[planosteve]

Jeeze! Bob just posted the article a few days ago. It was from the NYTimes. You didn't read it? I guess maybe it wasn't on Fox News or the Limbaugh Show.

It's not a question of disagreeing with the figures..

..it's that you can't determine the history of the middle class..or the Fed..or the ANYTHING..by the financial trials of the last 10 years.

It's really a fairly simple concept. The net worth of the middle class is worth 1/3 less than 10 years ago. It has nothing to do with history. And unless something changes that trend will continue.