Firing Up the Money Printing Presses

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Expect worse than that. The New York Post’s John Crudele explains the long-term consequences of the Fed’s policy. “Bernanke would have us believe his policy of endlessly printing money saved us from another Depression. But what he really did was author the Never-Ending Recession, which could morph into something much more dangerous if our currency craps out,” he writes. Yet it is Crudele’s next observation that should frighten every thinking American. “(Thursday), Bernanke gave Wall Street what it wanted–another round of ‘quantitative easing,’ which in layman’s terms is the endless creation of more dollars that are used to buy securities nobody else wants.” (Italic mine.)

It is one thing for a newspaper columnist to express the idea that the American dollar is being debased to the point where nobody else but the Federal Reserve wants it. It is quite another when the Treasury Secretary of the United States expresses the same idea. Yet if a recounting of last year’s debt ceiling negotiations contained in author Bob Woodward’s new book, “The Price of Politics,” is accurate, that’s exactly what happened. “Suppose we have an auction and no one shows up?” Geithner reportedly wondered out loud.

What indeed. The more the Fed is forced to print money to buy America’s debt, the more devalued our currency becomes. Yet Bernanke clings to his Keynesian-based ideology in the hopes that this time–as opposed to every other time–it will work. “With their home prices rising, people will start to feel more confident about spending again, and companies will start increasing activity and hire more people,” he said.

Some analysts weren’t buying it. “We doubt it will be enough to get the economy on the right track,” said economist Paul Ashworth at Capital Economics. “It’s only a matter of time before speculation begins as to when the Fed will raise its purchases from $40 billion a month.” In other words, Bernanke will be forced to print even more money, further debasing the currency, in what is becoming perhaps the most debilitating–and potentially catastrophic–vicious cycle in the history of world finance.

Fox Business Network senior correspondent Charles Gasparino explains the “why” behind Bernanke’s thinking. Bernanke “thinks it’s all worth the risk, considering the alternative: a nation falling back into severe recession because of a president with no clue about growing the economy, who thinks the best way to create jobs is to crush those who do the job-creating,” he writes. He also notes what must eventually happen in the long run. “Bernanke is well aware of the consequences of printing money…And he knows that at some point he’ll have to do just the opposite, and start contracting the money supply and raising short-term rates before full-fledged inflation kicks in. When he does, the ‘wealth effect’ of a rising stock market will evaporate, and so will the rest of the economy,” he writes. As long as that evaporation happens after the election, Bernanke will have accomplished his mission.

Maddeningly, Bernanke knows what drives his furious attempts to “save” the economy: out-of-control government spending in a nation where a dauntingly large portion of Americans either don’t know what’s going on, or don’t care–as long as they get theirs. Moreover, as Mitt Romney rightly noted, when you attack success, as this administration and the Democrat party have done at every opportunity, you get less of it. When government spends trillions upon trillions of dollars of borrowed money, it saddles Americans of this generation and future generations with an unconscionable burden, while the rest of the world looks at us and wonders when it all reaches critical mass.

Furthermore, this latest round of easing demonstrates the philosophy of government-picked “winners” who remain insulated from both genuine competition, and the consequences of their gross malfeasance. Not a single major figure has been prosecuted for the financial crisis that began in 2008, nor was a single resignation demanded or tendered from the bankers or heads of financial institutions that received TARP funds.

Thus, QE3 proceeds. It is unlikely that it will improve the economy a much as the Federal Reserve may wish. And when that becomes apparent — what then?

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  • Stephan

    Maybe Bernanke read "The Protocols of the Elders of Zion":

    Money exists to be circulated and any kind of stagnation of money acts ruinously on the running of the State machinery, for which it is the lubricant; a stagnation of the lubricant may stop the regular working of the mechanism.

    • flombre

      You mean Berninke is actually working against the ZOG? Interesting concept given that he is an integral part of the ZOG and so is the current Administration.
      Does the ZOG want to destroy itself? As l understand it the ZOG's main priority is to reduce the Whites numerically worldwide – and destroy the Christian churches. The ZOGs' mishandling of the first world economies may bring about its own downfall. You would imagine the ZOG has considered this possibility though the policies the ZOG is following would indicate it hasnt. Quite possibly the ZOG wants to take everything down in some kind of weird death spiral – including itself

      • Ghostwriter

        Your ZOG nonsense,flombre,tells me that you've come here from the Stormfront website. Hopefully,you'll go back there.

        • flombre

          l dont visit that site, the Zionist Occupational Governement is a fact of life. Jews and Gentiles alike suffer under its boot. You must be a ZOG area commander, Ghosty.

  • Rifleman

    "Quantative easing," is an effective way to plunder Americans' bank accounts, without ever opening the vault. The money in it is worth less, and politicians get to blow the difference, their loot, buying votes.

  • tony

    We need to create opportunities for vets that can encourage them to stay positive and that positive is to help their Nation and the world and they help themselves too if they want to start a Business in this kind of a business environment that Romney Ryan need to consider this Investor Opportunity to encourage New Economic growth and innovative efforts by small business that promotes the sector to expand and give more Middle Class Americans a Way to reach out to private sector investment in a ETF basket pool that would enable all small business and Individuals with Innovative solutions to contribute to our economic and commodities supply needs as well as environmental innovative solutions that compliment the efforts to expand supply . The world is at a cross roads where supply in the areas we see inflation tells us we need to start expanding that supply and if we wait too long free market fear will set in and we will lose the time and window of opportunity to get ahead of demand out pacing supply . This has happened over and over throughout history in the world and very tragic events happen once supply is out stripped and people are struggling desperately to find enough . Peace is only found through abundance in human needs supply and we need to realize this is where we are at this very time in history , and if Obama was focused properly on the causes in places like the Middle east , Africa and other poverty stricken areas in the world he would see this is whats driving their conflicts and struggled and up rising over their supply shortages that gives them a dirt floor quality of life and Instead of Blaming the unrest on a Video he would adjust his Foreign Policy to focus on the REAL causes of unhappy people and that’s a lack of abundant supply that they can improve their quality of life with . But His Environmental base of supporters who are controlling his Administration are telling Obama there is NO WAY the world can provide everyone the same quality of life to everyone in the world so that’s why Obama has chosen to try and take from the higher quality economies of the western nations who have led the way to improved lives and would rather appease the environmentalists with a Redistribution policy which will FAIL on Both sides of the worlds societies and destroy the economic security which is the supply sector economy .

    So Rather than follow a failing Foreign and economic policy of Obamas over the Cliff what we need is this ; If Wall Street could offer a ETF traded fund that allows the pooling of Small Businesses to be in the Basket ETF and those businesses then be able to assess what the baskets stock value generated from IPO and stock offering positions this would create the short and long term funding to promote a More Local small business effect on producing supply at the local level and this kind of supply expansion would be felt at the local level . The innovation that would be created by this because of the greater enabling of more individuals to have a greater opportunity to succeed would be phenomenal in our need to find solutions to expand the Food supply chain with . We need to do this Now because if we wait too long we will miss the window to avert a humanitarian disaster and see major conflict and oppressive reaction to societal destabilization leading to a repeat of past events such as Genocide because once the society is out of food supply to this Point it takes too long to expand the supply before the unrest reaches a state of absolution anarchy like past historical events where the supply shortage crept up on them and before they realized this oppressive conflicts and government rise of dictatorships were the end result . This report tells us we are dealing with too tight of a supply source to avert an shortage disaster into the near future as Population growth is continuing and supply is not expanding fast enough as we have for the most part expanded full production on current farmland in the world . At any given time in the world there is only a 60 day supply of grain available in the world supply chain , and it takes 120 days to grow a crop and we only get one time a year to grow it on both sides of the hemisphere so the spread is way to close to serve demand if something interrupts production… . I am telling you the Mission behind the Obama Administration follows a Path of Consolidation of Every Resource Known to Mankind all in the name of saving Earth from Overpopulation Fears within the Technocratic society , Look at those People Who President Obama surrounded himself with when he took Office , thats all you need to look at to know what Path our Nation and its Economy has been taken . This Fear needs to Be Challenged with Alternatives and make these People come out into the Open and Be truthful with the American People about what their true intentions are !!!!! .
    Here is a Audio of a Obama Adviser that explains the Health care Bill that even COBRA rejects ,
    COBRA rejects Obamacare ,

  • tony

    These guys that Advise Obama have conned Obama and are running the USA over the Cliff on Purpose with their ANTI growth ideology and this is wrong because the western nations show sustainable population growth in our own CIA Fertility Charts !!!

    See this Guy is right in there with Obama Science CZAR John Holdren and together with the other technocrats they have designed a de-Industrialization of the United States of America , These guys Planned this take a Look , , with the Transformation of Wealth Creation over the past 30 plus years of trade policies that has left us all Dependent now on foreign sources of parts supplies , and Romney Ryan need to point these National Security Risks out to the American People about why we need to Change the Tax Code to redirect Industrial Investment of Off Shore Funds held in foreign Banks Back to the USA so we can bring back a Balance of Self reliant Part production supply to the USA so we ARE NOT Dependent on foreign suppliers that NOW Don't even want to continue to Take our US Dollars for these traded goods !!! I bet that the Multi-National Corps would NOT have continued to Trade with these Foreign Suppliers if they would have Known that this would have led to a Rejection of the US Dollar and the USA and Europe becoming so Dependent on these parts supplies that this would become a National and International Security Risk , and so the Time for Debate around this economic security issue is justified and those responsible for directing this trend need to be exposed and why don't you think Romney Ryan ??? Its all about Freedom and that Freedom comes from being properly balanced in how we supply our Parts needs to sustain Life and Liberty !!!!

    If Romney Ryan can persuade the middle class to Believe in this kind of an approach to enabling them to have a shot at the free market system they would see a Nuts and Bolts solution that would encourage them to support this plan that a Romany Ryan administration could inspire . The Vertical farming that we can encourage with the help of small business contributing products and parts for the creation and operations if such facilities would localize supply more at the population centers so less cost to transport supply to the consumer could lower the overall cost of inflation on the current system of the centrally located processing and distribution supply system is set up that is now the inflation victim of Higher energy and imported maintenance parts costs that inflate the overall cost due to the transportation of our food products . If we can grow select foods in these kinds of facilities like fruits and vegetables and free up that farmland for other crops that need to be grown on farmland like grain , we can expand the overall food supply and with lowers energy use due to localizing the production of some of our food chain so transportation costs are lowered the overall effect will lower and stabilize the inflation in our cost of living . Middle Class people will Love you Romney and Ryan and this approach will make sense to them and they will be able to see it empowers them in the communities to start to rebuild the broken economies at the state level of our great Nation !!!! Plus if you include this innovative solution called Fodder Feeds , together with the Vertical Farm solution we can make this USA work for the American People again !!!

  • Jim

    Trying to push the economy with a string.
    And shifting power to Obama and the like at the same time.

    How is GMs stock doing now. Is it better off now than it was 2 years ago.

  • amused

    If you think its bad now , just wait .The next pissing contest over the debt will send this country into a depression , and it will soley be the fault if idiot partisan politics . Moody has already issued a warning of another credit rating downgrade . And just remember the saying "it's a recession when you are out of work , it's a depression when I am out of work " .
    I wanna see how many of you morons wind up on the unemployment line and signing up for OMG ! ….Food Stamps ! So get ready you lackeys , if there isn't a bi-partisan solution before 2013 , that's exactly what will happen . No matter who wins the election . So go ahead lol…" Make my Day " lol …and my CD 's go through the roof !