Ben Bernanke’s Banksters Legacy

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With Ben Shalom Bernanke set to depart on the last day of January 2014, the critique and speculation of his tenure as Chairman of the Federal Reserve begins. The mainstream financial press is giving mostly favorable accounts. Heretofore, such praiseworthy acclamations strike a shape contrast with the actual record of the state of the economy. However, the admirers of the Fed and his specific enactments live in a time warp that only masters of the universe encounter. For the remaining population, an intense struggle for survival is the actual experience, remembered from the Bernanke years.

Investopedia expresses a complimentary score of The Legacy Of Ben Bernanke, and cites distinguished highlights and concludes that “Under Bernanke’s stewardship, the Fed became the most transparent it has ever been in its history.”

Yet, they are compelled to mention that from 2008 onward, Bernanke and the Fed embarked on a series of unparalleled – and often unconventional – rescue programs and stimulus measures. These included:

  • ratcheting interest rates down to the lowest levels in American history;
  • force-feeding the U.S. economy with trillions of dollars through successive rounds of “quantitative easing”;
  • bailing out troubled Wall Street firms and institutions;
  • orchestrating the rescue of other troubled financial institutions through shotgun weddings; and
  • lending funds to diverse sectors of the U.S. economy to revive stalled credit markets.




Ben Bernanke’s Great Inflation Coverup, is an assessment that one would expect from the Mother Jones publication.

“Bernanke’s problem is pretty simple here: he almost certainly wants higher inflation . . . Once the Fed has reduced interest rates to zero, it can’t go any further. But what if the economy is so bad that all the standard models suggest you need negative interest rates to get the economy back on track? The only answer is higher inflation. If inflation is running at 2% and interest rates are at zero, the real interest rate is -2%. If you borrow money, you’re effectively being allowed to pay back less than you borrowed.”

Then there is the valid point made by Bill Sardi in LewRockwell.com. “The Fed been printing new money at the rate of $85 billion a month which is being distributed to close member banks who are gambling it on the Wall Street stock market to recapitalize themselves rather than lending it out into the economy so citizens can buy new homes, automobiles.”

The example of Paying back retirees with cheaper dollars illustrates the real costs of built in systemic inflation, not just for citizens on a fix income, but for everyone. This lost in purchasing value of the currency is obvious to any honest person.

“The average social security check was $321 in 1980 and in 2011 it was $1183 (adjusted for inflation).  But if that $321 pension check were to be fully adjusted for inflation according to way inflation was calculated in 1980 (cost of gasoline and food included), then that $321 should be $3636 to have the same purchasing power today.”

The severity of income disparity has reached staggering levels. Elite insiders game the system with insider speculation certainty, while the constructive producers that keep the real components of the economy functioning, are pushed to the margins.

Bernanke’s real legacy produced the following outcomes. The always-reliable ZeroHedge site states some undeniable facts under Bernanke’s watch.

  • The US has never experienced 3% GDP growth.
  • The labor participation rate has fallen to levels not seen since the ‘70s.
  • Inflation-adjusted median incomes have fallen 7%.
  • The US’s debt load has risen from $8.4 trillion to over $16 trillion.
  • The Fed’s balance sheet has increased from $800 billion to over $4 trillion (larger              than the economies of Brazil, France and even Germany).
  • Food prices have hit record highs fomenting revolutions in the Middle East and untold suffering around the globe.
  • The Fed has funneled trillions of Dollars into both US banks and European banks.
  • The Fed has allowed fraud, insider trading, and corruption.

The banksters demanded a bailed out because their derivative greed exacted losses that required an immense infusion of liquidity to rescue their balance sheets. Under Bernanke, the titans of finance have an unlimited line of near zero rate interest of new credit. When the establishment financial press applauds the savior of the economy, their loyalty towards corporatist governance, dictates that the economic interests and the public welfare of ordinary people is expendable.

Look to a prime example of this concentration of wealth and control. The Global 1%: Exposing the Transnational Ruling Class by Peter Phillips and Kimberly Soeiro, focus on BlackRock.

“BlackRock is one of the most concentrated power networks among the global 1 percent. The eighteen members of the board of directors are connected to a significant part of the world’s core financial assets. Their decisions can change empires, destroy currencies, and impoverish millions. Some of the top financial giants of the capitalist world are connected by interlocking boards of directors at BlackRock, including Bank of America, Merrill Lynch, Goldman Sachs, PNC Bank, Barclays, Swiss Reinsurance Company, American International Group (AIG), UBS A.G., Arab Fund for Economic and Social Development, J. P. Morgan Chase & Co., and Morgan Stanley.”

These crony capitalists are the prototypes that benefited from Bernanke decisions.

During the Bernanke era, the debt bubble entered the point of no return to solvency. His place in the history of shame sets the stage for further economic turmoil. The Federal Reserve after Ben Bernanke article indicates that the Fed is boxed into a pattern that is likely to escalate out of control.

“With the uninterrupted, increase in federal debt, much of which is held by the Federal Reserve, the prospects of achieving prosperity by growing the economy, when interests rates have been near zero, failed miserably. It becomes almost absurd to believe that higher rates on Treasury Bonds will succeed. The new chair of the Fed will be hard pressed shutting down Quantitative Easing.”

A depression in the real economy is foreordained with the retraction of credit to most enterprises. This starving of access to funding is a conscious and deliberate strategy to force competition out of business. The grand scale that the banksters operate on has little room for upstarts or hanger-on’s. At the end of this very destructive Bernanke term, the rich got fabulous more wealthy, as the country sinks into decline on so many levels.

James Hall – January 22, 2014

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1 COMMENT

  1. They are not the Americans, and “we” are not the rest of the planet. “They” are a small sliver of the American population, the get-rich-quick crowd from the East Side of Manhattan and similar places.

    Key players and historic figures in the global economy, to quote Israel Shamir :

    They had it good; they were proud that the financial charts of the US and of the world were drawn up in a small room by Henry Paulson of the Treasury, Ben Bernanke and Alan Greenspan of the Federal Reserve, by Maurice Greenberg of A.I.G. They built their world surrounded by Lehman Brothers, Merrill Lynch, Goldman Sachs, Marc Rich, Michael Milken, Andrew Fastow, George Soros, et al. Their exciting new world of Lexus and Nexus was glorified by Tom Friedman of the New York Times. They gave the Nobel Prize in Economics to Myron Scholes and Robert C. Merton, proud board directors of the now infamous Long Term Capital Management hedge fund that was bailed out by the Federal Reserve Bank of New York to the tune of $3.6 billion. President Bush rewarded them for their unaccountability by releasing them from the burden of taxation. Let them pay now for all the fun they had. Hang ‘em High!

    More excerpts from Shamir’s “Hang ‘em High”

    They took your real dollars and turned it into funny money — “unredeemable, non-interest-bearing promissory notes of the Fed, that are not backed by anything other than the confidence of the credulous”, in the words of one Internet wit. The ruination of the American working class and even its middle class is unavoidable The fears about the Large Hadron Collider creating a big black hole in place of Earth were based on this sinking feeling that the incredible riches of the US are disappearing into their own black hole.

    This is not the first confidence trick in US history: Jay Gould and Joseph Seligman caused the ‘Black Friday’ stock market crash in the late 19th century, while Jacob Schiff caused the notorious ‘Black Thursday’ panic that led to a nationwide economic depression [1]. Seligman was also the mover behind the Panama affair, a stock market swindle that became proverbial in France. The swindle was set up by two Jews of German origin, Jacques Reinach and Cornelius Herz who bribed parliamentarians. While Reinach was working on the right wing, the ‘Republicans’ of his day, Herz was working on the ‘Democrats’. Wikipedia quotes Hannah Arendt, who wrote that the middlemen between the business sector and the state were almost exclusively Jews. This warm embrace between the state and the business sector was a recipe for disaster.

    Obviously things have changed since then, and now the Mammonites are of various persuasions, even of Christian Science, like Hank Paulson, whose net worth is estimated at $700 million and whose career at Goldman Sachs (Chairman 1998-2006) made him the obvious choice for the position of secretary of the treasury. Only their devotion to the god of Greed remained constant. In the world of ideal capitalism (“market economy”) they so glorified, they would have paid a price. In Glen David Gold’s vastly entertaining novel Carter Beats the Devil, their spiritual ancestor was tarred and feathered by strong-willed Connecticut folk circa 1670, for he had bought a whole boatload of imported products with the criminal intent of getting rich quick by cornering the market and ripping off his fellow men. Nowadays such a criminal would get a medal from the neo-liberal Milton Friedman Fund, a citation from JINSA and be taught as a positive example by the Harvard Business School.

    Now they intend to use their control over the government in order to shift their losses onto ordinary Americans. Whether this act is called ‘nationalisation’ or ‘privatisation’ or ‘bailout’, the bottom line is that many Americans will find themselves poor, and all Americans will have a huge tax burden to bear. But the perpetrators of the pyramid will get off scot-free; they will retire to their castles and to their sure and protected investments as they have always done before.

    The Americans were played for suckers; they were cleaned out as easily as were the unsophisticated Albanians a few years ago. Even worse: the Albanians took out their guns and pursued the robbers; the Americans take it all lying down. But the device was the same.

    The Americans are entitled to know who robbed them and their children: these are the men who became so ostentatiously rich during last two decades. They should pay the price of their crime. And if the government, the President, the Congress and Senate, the Democrats and the Republicans are reluctant to enforce it, the ordinary Americans may do as their Connecticut Yankee ancestors did: apply tar and feathers liberally. If this does not help, hang the bastards on the lamp posts.

    If we assume that more than half of all billionaires are proud members of the Israel Lobby, it will also solve the Middle Eastern problem. To be on the safe side, confiscate all the assets of the Pyramid-builders: of Paulson and Bernanke, of Merrill Lynch and Goldman Sachs executives, and of President Bush who allowed it all to happen. Peace will come to Palestine, Afghanistan and Iraq; Americans will again become proud of their country. Such mass confiscation will restore democracy in the US: the next candidates for the Presidency will not go hat in hand to AIPAC to declare their fealty. The defeat of Greed will turn people back to God; the eliminated ballast will allow for national medical care, social security and free education for all. Instead of being a disaster, the financial collapse offers a unique opportunity to fix all America’s ills. Do not miss it!

    Speaking for the wide world outside America, I’ll tell you this: do not throw good money after bad. Reject the seductive purring from Washington. Consider your funds in the US already lost. If you can still get something, good; but do not waste money and efforts to regain what is gone. There is a most valuable asset you may get for the lost ones; that is your freedom and independence. An undermined dollar means your economy will be safe.

    The Pyramid collapse will set you free!

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