Duringtoday's little CNBC circlejerk shindig, Ben Bernanke, in defense of his disastrous, and now deadly policies, once again confirmed that the (one and only) benefit from QE2 has been to boost stock prices. Oddly enough, there was no mention of surging energy, food and commodity prices. Nor did Liesman ask the Chairman about 43.2 million Americans on foodstamps, just as he did not ask the dictator of the centralized ponzi for his comments on why at last count 50 people in Tunisia were dead protesting, among other, record food prices and cost of living.From Market Watch:
Federal Reserve Board Chairman Ben Bernanke said Thursday that a controversial $600 billion bond buying plan has contributed to a stronger stock market. "Our policies have contributed to a stronger stock market just as they did in March 2009 when we did the first iteration of this program," Bernanke said at a Federal Deposit Insurance Corp. forum on small businesses. "A stronger economy helps small businesses more than larger businesses. Interest rates are higher but that's mostly because the news is better. It has responded to a stronger economy and better expectations." The $600 billion bond buying plan follows a completed effort to buy $1.75 trillion in government bonds and Fannie Mae and Freddie Mac-backed mortgage securities.
Obviously, none of this is news to anyone who realizes, as Zero Hedge readers have been told since 2009, that the Fed's one and only goal is to push stock prices higher in some fallacious linkage that the stock market is equivalent to the economy. But that's what happens when the person running the formerly free world is an academic historian with absolutely no real world experience.
And just to confirm this observation, we present Trim Tabs latest press release which states that the "Fed’s Quantitative Easing Works Wonders on Stock Market but Does Little for Economic Growth and Employment." Unfortunately it does a whole lot to make people all around the world cold, hungry, and increasingly angry and in increasingly more cases, dead:
thats why CNBC's noise maker clown loves his Uncle Ben. This isn't new news.
ReplyDeleteif rates go up to some where around 6% again whoooohooo I’ll start makin money again. Than a 2 or 2.5% COLA on that.
Everything is going up in cost no matter what the BLS says, and berrnie needs to raise rates soon. All you see now are stories of food riots. no inflation my ass.
floods drown coal, coal up, too restrictive reg's shut off use of resources, energy costs rise, droughts fires wars crop diseases, food up, add some large earthquakes and a bunch of other unforeseen things ontop of QE type measures taken by many gov's ontop of political infighting and trade and currency wars and it's just plain bound to fail huh
ReplyDeleteA foreign observer asks.
ReplyDeleteAs a dumb foreigner I have problems understanding the workings of American money printing.
But I have a business idea.
America capitalist banking and its currency printing is getting pretty weird.
It seems that the cental bankers and the Fed itself are waging a war to destroy the value of their own printed dollars by inflating away its value in order to avoid a national debt default.
Sure I know they call this ‘recovery” of the economy .
And, Yes .I do know that there was a coup over the US treasury a couple of years ago . But this continuing unlimited money printing is looking stranger and stranger.
Is the “American” central bank under foreign control in some sort of printing occupation scrip war economy mode?
Like for example ;
During the second world war the Japanese central bank printed funny money for use in the countries they intended to occupy, they called it ‘occupation scrip” and printed as much as they liked. In the end it was all valueless .
So ,I do have these problems understanding the workings of American money printing today , first printing bailout money to socialize any losses of the finance sector,
Then money that was handed out in free, or near interest free “loans” to the banking sector in exchange for pawned valueless bad debt bonds ,lost derivative bets etc the pawned losses are then are recorded on the books the central bank as “assets” for the taxpayers to pay off as they call it “national debt”
But it also seems that the privately owned central bank is issuing paper money ,resembling Monopoly money ,printed just as they decide in $1 or$ 100 dollar imprints for government ,who it seems spend some of it in providing government services and in salaries to its employees as well as for wars.
The banks ,understanding that there is no longer any real profits to be got loaning money to business or on mortgages in the US , naturally send any of the excess money they got for free, back to the Fed bank ,where they get paid extra interest on the loot held as Fed ‘bank reserves”.
now we are moving into QE mark two whereby ,the government also sells Treasury bonds to selected ‘primary dealers” or partners in fraud ,at one price , then the primary dealers immediately sells the treasury bonds back to the government or its Fed bank at a higher vprice an instant free profit for the primary dealers.
In this way the Fed can Buy back the Treasury bonds on behalf of government as security against the dollars the Fed itself printed.
Some of this money creation is transferred digitaly between the banks the US treasuryand the money printing Fed central bank .
The private owners of this bank whose spokesman is helicopter Ben Bernanke therefore claims for this reason that the Money is not actually “Printed” , is “non inflationary” and is a 100% sure it will all work out in the end for the benefit of the American and foreign shareholders in his bank.
Truly weird stuff.
As Americans themselves might understand all this may I ask readers your advice?
My business Questions are:
Should I set up a business as a dealer for collectors of souvenirs of this weird worthless type scrip money just like you can buy the Japanese scrip money cheap ?
Do you think I could find an American agent/ partner here on this blog to buy this scrip stuff up when it crashes ,or are all you guys too busy cashing in this scrip money for gold and silver?
Threats of hyper-inflation?
ReplyDeletehow much do collectors of these bank notes ,pay now in the market for a Weimer or Zimbabwe trillion dollar note anyway ?
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