Please consider Bernanke Defends Fed Stimulus in Closed-Door Talk With Senators
Federal Reserve Chairman Ben S. Bernanke met with U.S. senators today to defend his expansion of record monetary stimulus, saying it would aid job growth and the central bank would control any inflation.
Alabama Senator Richard Shelby, the senior Republican on the Banking Committee, said Bernanke cited an estimate that the program may help create 700,000 to 1 million jobs. Bernanke met with about 11 committee members amid a Republican backlash against the Nov. 3 decision by U.S. central bankers to buy an additional $600 billion of Treasury debt.
Bernanke reiterated his view that the central bank needs help from Congress in aiding the economy. “He went out of his way to say that he absolutely hopes Congress will take the lead in setting economic policy,” [Indiana Senator Evan] Bayh said.
Curiouser and Curiouser
Inquiring minds are asking, if that's all it took, why didn't he do so in 2008 when the unemployment rate started soaring? Why not double it and create 1.4 to 2 million jobs?
That last paragraph in the Bloomberg snip above has me wondering if Bernanke went down the rabbit hole. Allegedly Bernanke wants help from Congress to set Economic Policy?! Really? What about that big battle Bernanke had with Congress over that very same issue?
Failure of QE Round One
Round one of QE was supposed to stimulate housing. Did it?
Gerald Celente Beginning of the End of the Euro
walmart and other multinational do well with QE as refinance and take proceeds and expand oversea's, creating jobs there and..make money
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ReplyDelete‘Allegedly Bernanke wants help from Congress to set Economic Policy?! Really? What about that big battle Bernanke had with Congress over that very same issue?”
What “battle” was that ?
All I saw at TARP time and since was a lot of Congressmen and senators bending over to support a bipartisan coup to take over the US Treasury by the private Fed and goldman sach type banksters .
All blessed by Bush ,Mc Cain and supported by the new found puppet frontman, ‘Comrade” Obama of the “left” wing of the unionized labor aristocracy.
The pretence here is that Q1 was actually designed to create jobs for Americans and therefore the stagnant economy and lack of new jobs was a failure of “Big Government”, not of the Finance sector and Fed money printing for banksters and their failed attempt to get full recovery of the Great Ponzi economy.
TARP and QE1 were not about getting unemployment solutions ,that was just the hoped for side effect promoted by spin managers .
In fact the TARP and Q1 were a great temporary success as we can see in the reported huge profits and bonuses being reported in the finance sector.
To keep that going again it is now time for QE2
The Tarp bailout was designed to socialize the losses of the finance sector in the housing bubble after the collapse of the money markets/credit supply in 2008 ,losses from fraudulent bonds and mortgages as well as from huge derivative bet insurance losses.
A big problem was those still continuing losses on sub-prime , Alt A adjustable rate mortgages ,and in, Fannnie and Freddie criminals scams, with cheap/financing of the mortgage market for the banksters at taxpayer expense .
Tarp was an attempt to resuscitate the Great Ponzi and Dollar hegemony system especially by propping up property prices to keep the mortgage system working .
But the banksters just took the free money and had no interest at all in making loans into a dead falling in price housing sector.
Government deficit spending for many years especially for the purpose of military Keynesian stimulus for wars and militarism had made it difficult for government to pay its dividends on treasury bonds and for the F&F bonds after nationalization was necessary at the demands of foreign investors in F&F, by Russian ,Chinese Arab and other big investors.
Faced with a complete collapse in credit supply for the turnover of loans ,new mortgages and housing refinance the dead banking and finance sector needed a wholesale bailout .
It was impossible for government to continue to finance its own ongoing deficit spending and the bailout for the banksters for past losses and the need of extending govt loan guarantees for the borrowings of the insolvent banks without turning to the printing press.
It was only bankster propaganda that the main purpose of the following Q1 was to fix the housing construction help underwater house buyers and create new employment.
QE2 is also not designed to help the American people but a license for the Fed to print even more money , to try and prop up the ongoing bailouts, by purchasing new government debts incurred by deficit spending to pay for Americas ongoing bailouts and permanent wars against the third world.
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