Skip to comments.Bernanke Unmasks Obama's Big Lie
Posted on 09/15/2012 11:44:59 AM PDT by morethanright
By Mr. Curmudgeon:
"If you tell a lie big enough," said Hitler's propaganda mouthpiece Joseph Goebbels, "and keep repeating it, people will eventually come to believe it ... the truth is the greatest enemy of the State."
Describing their political enemies as "Nazis" is a familiar tactic by the left. However, there has never been a time in American history where the big lie has been employed so liberally and so clumsily than by today's Democrats and their propagandists in the mainstream media.
When you think about it, that is pretty much what all the speechmaking and chest thumping at the Democratic National Convention was all about. Though many on the right concentrated on freak-show side acts like Sandra Fluke - the 30-year-old professional law student who droned on about a wacky scheme to use her hyperactive sex life and contraception needs to bankrupt the federal treasury and the Vatican Bank - most speakers went on and on about how President Obama saved America from economic calamity.
House Minority Leader Nancy Pelosi said, "This year, we are determined to re-elect an extraordinary president who, in no ordinary time, led America back from the brink of depression - while Republicans tried to block him at every turn."
Former President Clinton described Obama as the "man who stopped the slide into depression and put us on the long road to recovery."
"Folks, tonight, I want to tell you about Barak Obama," said Vice President Joe Biden, "The Barack Obama I've come to know. I want to show you the character of a leader - who had what it took, when the American people stood at the brink of a new Depression."
Then Federal Reserve Chairman Ben Bernanke popped the big-lie bubble as he did with housing. "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the [Federal Open Market] Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month."
What the heck did Uncle Ben just say?
Let me break it down in simple English: The Fed purchased $500 billion in mortgage-backed securities from Freddie Mac and Fannie Mae in 2008; in 2009, it spent $1.25 trillion doing the same; by November 2010, the Fed picked up an additional $600 billion of these junk bonds; oh, when Bernanke testified to Congress that "the crisis in Europe affected the U.S. economy by acting as a drag on our exports," he floated secret Euro bank loans - later uncovered by the fiscal hawks at the libertarian Cato Institute - that totaled around $1.2 trillion; some estimate the Fed's bailouts to central banks around the world is in the tens of trillions - but we won't really know until Congress shows a little testicular fortitude and audits the beast from top to bottom; the Fed's new plan will spend $40-billion-a-month collecting bags and bags of dead mortgage leaves and ramp up its "operation twist," which pumps counterfeit greenbacks into the economy through the purchase of 10-year Treasuries - bringing the grand total of domestic purchases to $85 billion per month.
Hold on to your hats because this is the point: The high prices we see at the gas pump and the super market are way lower than they should be. The untold trillions of dollars pumped into the global economy should have triggered 1920s-style German inflation - where people needed wheelbarrows to carry a mountain of devalued cash to the market just to buy a loaf of bread.
That means America is in a deflationary spiral - economist-speak for DEPRESSION, and Bernanke will keep pumping greenbacks into the economy until he sees us pushing wheelbarrows of Monopoly money down the aisles at WalMart. That has not happened yet and Bernanke is in panic mode. That explains his new initiative to drop trillions of worthless dollars from high-flying, slow-moving dirigibles.
More than that, Bernanke's announcement, it should be remembered, says one thing - and loudly: talk of Obama having saved the country from sliding into a depression is a lie. We are in one and Bernanke admitted as much.
And who knows, Bernanke's last act of desperation may be to provide trillions of dollars worth of contraception to Sandra Fluke to keep her and the U.S. economy properly ... stimulated.
Article shared using the Free Republish tool on Tea Party Tribune.
The liars seek to enslave America.
The media will dutifully issue the lies they are told to issue, as the fifth column enemy of We The People.
Federal Reserve Chairman Ben Bernanke popped the big-lie bubble as he did with housing. "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the [Federal Open Market] Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month." ...The Fed purchased $500 billion in mortgage-backed securities from Freddie Mac and Fannie Mae in 2008; in 2009, it spent $1.25 trillion doing the same; by November 2010, the Fed picked up an additional $600 billion of these junk bonds; oh, when Bernanke testified to Congress that "the crisis in Europe affected the U.S. economy by acting as a drag on our exports," he floated secret Euro bank loans -- later uncovered by the fiscal hawks at the libertarian Cato Institute -- that totaled around $1.2 trillion; some estimate the Fed's bailouts to central banks around the world is in the tens of trillionsIt means that the Chinese are financing the federal deficit using money obtained from their exports to the US and elsewhere.
People won’t be pushing wheelbarrows down the aisles of Walmart, because when prices are three times or four times as high as they are now, people will have the same or less than they have now. Inflation isn’t going to fix this mess, and inflation is the only thing the Bernanke’s of the world know how to deal with. If we were keeping up with inflation, even figuring in lag time, families would have as much buying power now as what they had four years ago. That is certainly not the case. If they are lucky, they have the same amount of income as what they had four years ago, but that income is buying much less. Prices will go up, but not salaries. Bernanke is robbing the middle class to finance banks holding bad debt. He and his pals will come out of this in great shape. The man on the street is completely screwed.
What is the “dual mandate”? Good times and jelly doughnuts? I assume he’d say something lik economic growth (which is good) and a stable dollar (which is not necessarily). Growing the economy to them almost invariably means inflating, and a stable dollar means no inflation or deflation.
However, inflation is inflation, obviously, and less obviously inflation can lead to deflation. So the Fed’s goal is to inflate while avoiding inflation. Which lets you know right there why they’re really bad at their job.
You can say middle class, because it’s probably true as by definition they’re the biggest group. But more accurately he’s robbing savers. Luckily for some they’re too smart to save in greenbacks. If I was smarter I’d ask for my salary in gold, crude oil, real estate, diamonds, fine art, etc. Anything but dollars.
As much as I think Baldy Ben is incompetent, so too do I see trouble for Romney. Don’t get me wrong. My vote is 99% against his imperial majesty Comrade El Presidente Caliph Shiek Obama the First and 1% for Romney. But Romney has 3 HUGE obstacles. First, the MSM who is the lap dog of any and every Progressive/Socialist/Communist/Marxist American Hater they can find and have only given us a taste of their bald face lying in blaming Romney for the Middle East being on fire. Second, Bill Clinton (and by extension, the entire Clinton Machine) succumbing to whatever threat or bribe A$$wipe in Chief put before him in order to not only give the best speech at the DNC (which I believe Obama’s speech was intentionally toned down) but served as THE tipping point in this election, IMHO. I suspect he reminded Bill that if he wasn’t re-elected, Bill would have Hillary in this country all the time and not off boozing it up the the ChiComs or sucking up to some Islamist radical somewhere. Would drastically reduce Bill’s dating life. Third, the entire financial system as represented by the Federal Reserve (including all the major players who for some strange reason cannot see how the Alinsky Professor will destroy capitalism and their way of life of given the chance) who whole heartily, overwhelmingly endorsed the Community Organizer who merely stirs up trouble instead if a proven business executive who knows how to create jobs. I will vote against Obama. I will hold my nose just like in 2008. But I won’t have to pinch it so tight like with McCain.
I look at that concept, inflation at a rate most consistent with their mandate, and suddenly it hits me that they are thinking backwards and confusing cause with effect. A low rate of interest is consistent with economic growth, since it implies saving, forethought, and less spent on present consumption. So the Fed says, hey, let’s loser interest rates, or inflate the currency which we consider interchangable as bith expand credit, and it’ll grow.
But it doesn’t work that way. There’s a market for money just like everything else, and you can’t get the same result setting it arbitrarily. Printing or digitizing new money without the necessary saving will not make the economy grow, or grow correctly. You cannot trick people into thinking things are okay by synthesizing conditions of capital formation and production expansion.
Thus is just like during the Great Depression Hoover and FDR thought keeping wages and prices high would keep people employed and producers selling. But it doesn’t work that way. Once again, backwards. High wages are the effect, not the cause, of productivity. High prices are the effect, not the cause, of consumer demand and producer profit.
Try them without the causes of supply meeting demand at the eight price, and you have people out of work and unsold goods. Try inflation without saving and people’s preferred time schedules, and you have bubbles. Or, for the time being when no one believes it, maybe just nothing.
On the bright side the Fed is so incompetent that even if it deliberately set out to destroy Romney it’d probably end up saving him.
I’m actually talking about people who are scraping by who don’t have anything to save at the end of the month. They might have retirement funds, but even if they ever see a dime of them, there won’t be enough to keep anyone going. I do mean middle class, as in the majority of the lower middle class who don’t don’t have anything to invest. This is killing them.
This is the problem with the tyranny of experience. When the landscape shifts, applying the old reasoning doesn’t work. The inflation won’t come from rising wages like during the early postwar years but from the upbidding of food and energy prices which will kill the middle and lower classes.