Ben Bernanke Has Betrayed Us All

Along with having a decades-long career in accounting, finance, training and development, Tom Blumer has written at his own blog BizzyBlog.com, and several national online publications primarily on business, economics, politics and media bias topics since 2005.


As if we needed any further reminder of how thoroughly corrupt and one-sided Washington has become, the man who is ostensibly in charge of what is supposed to be the most important politically neutral institution in the nation has once again weighed in on the side of the most financially irresponsible administration in U.S. history.

In case you missed it in the midst of the media-imposed obsession over “gun violence,” aka the orchestrated attempt to do as much damage to citizens’ constitutional right to keep and bear arms as possible, Federal Reserve Chairman Ben Bernanke appeared on Monday at the University of Michigan’s Gerald R. Ford School of Public Policy. In a question-and-answer format, first with school dean Susan Collins and then followed by submitted student questions, Bernanke, in what Ylan Q. Mui at the Washington Post called “a free-wheeling conversation,” engaged in historical revisionism, berated the U.S. Congress, and parroted the aggressively partisan line President Barack Obama and officials in his administration have taken as the federal government once again bumps up against its duly legislated credit limit:

… [I]t was the very slow solution to the debt ceiling in August 2011 that got the US downgraded last time. … [I]t’s very, very important that Congress take necessary action to raise the debt ceiling to avoid a situation where our government doesn’t pay its bills.

Bernanke tried to pretend that the downgrade of long-term U.S. debt from AAA to AA+ by ratings agency Standard and Poor’s occurred because the House of Representatives under Speaker John Boehner didn’t immediately bend over and acquiesce to an unconditional increase in the debt ceiling almost 17 months ago.

That was at best a secondary reason for S&P’s downgrade. The primary driver was the firm’s clearly expressed opinion “that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.” In other words, after all of the histrionics, Congress and the administration failed to do what they needed to do to get the government’s house in order.

S&P was indeed also troubled “that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened.” But who did the weakening? Certainly not Boehner’s House; the Speaker and his party took control of Congress’s lower chamber in the 2010 elections when the nation decided it had seen enough of the frightening damage inflicted by two years of one-party rule under Obama, House Speaker Nancy Pelosi, and Senate Majority Leader Harry Reid. Voters hoped that Boehner’s House would be able to rein in the insanity. That hasn’t happened yet, but the “weakened” situation S&P cited predates Boehner’s ascension to Speaker.

That weakening occurred in two stages. The first took place when Pelosi, Reid and Obama decided to ramp up spending from an already far too high $2.98 trillion in fiscal 2008 to a dangerous $3.57 trillion in fiscal 2010 (the “official” 2010 spending figure is lower because Tim Geithner’s Treasury Department engaged in TARP-related accounting manipulation which made fiscal 2009 look worse than fiscal 2010, when that wasn’t really the case), primarily by passing a “stimulus” program which stimulated nothing but massive levels of waste, fraud and abuse. Then, despite promising that the stimulus would be a temporary two-year operation, and that spending levels would come down after that, Obama and Reid made it clear to Boehner and the rest of the country that their previous pledges meant nothing, and that they would accept no meaningful controls on spending growth. Thus, the “weakened American policymaking” S&P cited is directly and completely traceable to Pelosi’s sessions of Congress, the White House, and Congress’s upper chamber.

As he cited the need to have the current debt ceiling of $16.394 trillion raised, Bernanke gave away his contempt for our Founding Fathers and the brilliant separation of powers mechanisms they set up in our Constitution. While he didn’t directly answer a questioner who wanted to know his take on whether the ceiling “could … be eliminated without much consequence,” his answer, which the Washington Post’s Mui interpreted as a call for getting rid of it, was deeply disturbing:

[I]t’s got symbolic value, I guess … [E]ssentially, no other countries in the world have this particular institution.

Gosh, Ben. What if everyone in the country decided that the credit limits on their credit cards, home-equity lines, and other forms of credit were just “symbolic”? The answer is that in almost all cases attempts to borrow above those limits would be stopped by strict control mechanisms installed at checkout lines and other points of purchase and credit access. By contrast, Ben Bernanke would apparently prefer that the government have no limit on how much it can borrow. We can already see the accumulating wreckage in Europe which has occurred because there has been no meaningful restraint on EU governments’ borrowing ability. It’s not pretty, and it promises to get very ugly.

Speaking of ugliness, Bernanke’s mimicking of the Obama administration’s meme that Boehner’s House needs to “pay its bills” is among the more risible assertions I’ve heard out of this bunch — and that’s saying something.

Boehner’s House has passed budgets. Reid’s Senate has refused to even consider them or to pass any other kind of budget resolution, effectively placing the government on spending autopilot for nearly four years. If he were a responsible fiscal steward, Obama would insist on receiving an agreed-upon roadmap for running the government. Instead, he has been all too happy to run up the government’s debt tab while disingenuously disclaiming any responsibility for it.

The sad reality is that Ben the Betrayer Bernanke’s Federal Reserve has long since been co-opted by the Obama regime. The Fed’s multiple programs of “quantitative easing” have financed an out of control government with trillions of dollars of money created out of thin air. If QE stopped today, the government’s finances and the nation’s economy would more than likely collapse in short order. Bernanke’s four years of cooperation with his profligate masters now have us at the brink of the point of no return.

That’s not John Boehner’s fault, Ben — and you know it.

Freedom Center pamphlets now available on Kindle: Click here.

  • Mary Sue

    Well, all I can say is Obama appointed that guy for a reason. Of course he's going to help cover O's arse!

    • Jerry

      He was appointed by Bush. It only feels warm and fuzzy to believe he was appointment by Obama and is in cahoots with him, but it isn't the truth. You do want to know the truth, right?

  • http://www.adinakutnicki.com AdinaK

    The article desrcibes what happens when revolutionary radicals are at the helm, whether they started out that way, or were converted along the way. Either way, the average Joe pays the price – http://adinakutnicki.com/2012/10/07/when-authenti

    The plan has been set in motion to deconstruct the economy. And one needn't be a fiscal genius to understand when one plus one doesn't equal two. So when a person is deeply in debt, the way out is to lift off the debt, NOT to create more!
    http://adinakutnicki.com/2012/08/07/barack-hussei

    Adina kutnicki, Israel – http://adinakutnicki.com/about/

  • zaynab

    Obama paraded a whole set of horribles that will happen if the debt ceiling isn't raised and Bernanke parrots Obama and both blame the Republicans. Why is no one pointing out the horrible consequences of repeatedly raising the debt ceiling?

    • Jerry

      Bernanke is a Republican and was appointed by a Republican president. So, do you really think he is blaming his own party?

  • davarino

    buy gold, silver, ….etc.

  • Rifleman

    Our credit downgrade couldn't have happened without the astronomical debt accumulated and deficits they're running. Isn't this the opposite of what this clown was saying just a few years ago?

    • mlcblog

      Everything he does is opposite of what he said.

  • Arlie

    In 1871, due to the Civil War, our representatives from the South could not return to Congress. So, under "Emergency Powers" the North created a de Facto Corporation called the United States to carry out the needs of the "government".

    In 1913, the U.S. de Facto Corporation was broke and needed a loan from the Global Banksters so, the "Federal Reserve Act" was passed. (same year as the secret meeting on Jekyll Island off GA coast where all the Banksters meet).

    In 1933, the U.S. de Facto Corporation declared bankruptcy ad had to liquidate. The "government" gold was not enough to resolve the debt to the Banksters so the "government" declared martial law and the "Trading with the Enemies Act" and forced ALL Americans to turn over their gold. That still was not enough!
    The "government" then pledged the Land, Agencies, Branches of "government" and the People as collateral!

    Social Security was established in 1936. These are debenture bonds for the receivers of the bankrutcy. We are debt slaves and livestock to the global elite. In 1944, the bankrupt U.S. de Facto Corporation signed the Bretton Woods Agreement which transferred the DEED (collateral) to the global elite, the IMF, and the World Bank. The League of Nations (UN) was created the next year. Now you know why the UN has so much influence on us. In 1971 the U.S. de Facto Corporation went off the Gold Standard. In 1992, the same year Agenda 21 was introduced, the IMF minions, George H. Bush Sr. put America up for Sale. Then Clinton carried on.

    When the de Facto, illegal, unconstitutional U.S. Corporation was set-up the de Jure, Legal U.S. Government was vacated.
    We the People are Sovereign. The de Jure U.S. Government has been re-established with all the founding documents. http://www.republicfortheunitedstates.org President, James Timothy Turner.

  • pierce

    Bernanke is doing what he has been told to do, so even though he has betrayed us, it is our President who has really betrayed us, for Bernanke supposedly acts on his own, but the Prez sort of nudges him along.
    My opinion only.

    • Jerry

      Seeing as Ben Bernanke is a Republican and was appointed by G.W. Bush, do you really think Obama is pushing his buttons?

  • κατεργάζομαι

    Confucius say to Federal Reserve Chairman Ben Bernanke:

    Too much stimulus package abuse causes economy to have buck teeth.

  • http://360.yahoo.com/paulsheldonfoote paulfoote

    This is an excellent critique of the outrageous remarks by Bernanke. The problems are even more severe when you consider America's off-balance-sheet debt:
    http://www.forbes.com/sites/robertlenzner/2011/04

  • patron

    Obama's utter impotency on debt makes me believe a solution will only originate from private individuals and never from Washington. Hopefully Jim Demint brings great success to the Heritage foundation, and starts helping people off welfare, food stamps, medicare and social security.

  • κατεργάζομαι

    RE: Ben Bernanke Has Betrayed Us All..

    ~ Ben Bernanke is a flipping Keyne-si-an Economist…..who is amazed by this?

  • FPF

    Indeed, the credit rating does not mean how much you can borrow, but the possibility to default the debt. Downgrading the US credit rating by S&P indicates the US will have problem paying back her debt if the debt is allowed to grow further and further (i.e. raise debt ceiling). How ridicules everyone in Hussein Obama's administration believes it's the other way around?

  • JacksonPearson

    Federal Reserve Chairman Ben Bernanke is a stooge for who's ever in office at the moment.

    • Looking4Sanity

      You've got that backwards, my friend.

      1913, Christmas Eve, Jekyll Island…America's oldest cold case. Lady Liberty took a double tap to the back of the head in a smoke filled back room meeting. She never saw it coming.

  • Ghostwriter

    Ah,F–K YOU,you might want to clean up your screenname. It's not doing anyone any good.

    • patron

      Eight candles we’ll burn and a Ninth one too
      Every New Year that comes and goes
      We’ll think of the many in the hands of the few
      And thank God we are seeds of the Jews

  • Western Spirit

    Bernanke is more than a stooge, a stooge is comic figure or someone easy to take advantage of, Bernanke's a lackey of the slimy sort, a lackey of those who are bringing down this country. My husband, was a student of the Stock Market and disliked Alan Greenspan but he disliked Bernanke more because he's more insidious.

  • scum

    Given the damage done by Greenspan, anything else is a welcome relief.

  • umustbkidding

    Thomas Jefferson said in 1802:
    


"I believe that banking institutions are more dangerous to our liberties than standing armies."

    "


If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up
homeless on the continent their fathers conquered."


  • umustbkidding

    Boehner may not have bent over right away but he still bent over and now he (maybe) see's his irrelevance. Zero doesn't care about the debt ceiling or if the cuts that the fool Boehner agreed to, do take affect. Both of these out comes suit Zero fine. The Republican party is not and does not operate independently of the Democrat party, it is subservient to the Democrat party. Those of you that think it's too much trouble or you'll never get enough votes if a third party is started – are wrong. If the Republican party didn't win this last election, then it isn't slated to win any elections.

    There were sooooo many things that could have been done by the Republican party and or Romney to win this election. But they chose to play nice. Playing nice means that they don't want to win. Refusing to confront your opponent with facts and drive those facts home, is the same as refusing to win. Refusing to call out the press for it's corruption means that the Republican party is enjoying the head lock that they are in. We need to get rid of them all and start fresh.

    • K..

      *sees his irrelevance*

  • I'm Having a…

    I'm from Australia and all this ground-shifting and pussyfooting you're experiencing from your government goes on all the time in my country. It has done so for many years. I know how you feel. Been there, done that.

    Remember one thing: the biggest crooks always wear the best suits.

  • Adolf Hitler

    1. Disarm the populace 2. pit classes and races against each other 3. grab as much power as you can 3. Dictate mandates 4.repress one group of people 5. isolate them to ghettos. 6. exterminate them en masse

  • Len_Powder

    "The sad reality is that Ben the Betrayer Bernanke’s Federal Reserve has long since been co-opted by the Obama regime. The Fed’s multiple programs of “quantitative easing” have financed an out of control government with trillions of dollars of money created out of thin air. If QE stopped today, the government’s finances and the nation’s economy would more than likely collapse in short order. Bernanke’s four years of cooperation with his profligate masters now have us at the brink of the point of no return.

    That’s not John Boehner’s fault, Ben — and you know it."

    WELL SAID TOM! CUDOS TO YOU. Bernanke, Obama, Geithner, Pelosi, Reid, Schumer, etc. are all TRAITORS. This will become apparent one day in the distant future. In the present all we can do is to continue exposing and fighting them and people like you are more important than ever. Keep up the good work!

  • Looking4Sanity

    SO?! What's new about that? The Federal Reserve has been systematically committing acts of economic rape on American citizens since 1913! Their crimes are heinous and ongoing. If you're feeling a little chafed, they'll just lube you up with some economic stimulus and pump you for another 100 years!

    Wake up, America! You're being raped!

  • sophie

    Bernanke is doing what he has done all along – jerk with the U.S. economy as though it were his own personal PhD doctoral thesis. bravo.

  • Jerry

    The issue at hand isn't whether or not spending reaches the debt. ceiling, but rather, how is it that Congress gets away budgeting expenditures that they can't even afford with the current debt ceiling? This kind of fiscal management is asinine.