Idiots or Frauds – You Decide

Since Lord Bernanke decided not to cut the “stimulus pumping” of 85 billion a month in funny money that he’s dumping into the economy, it stands to reason he’s either willingly defrauding the public or he’s completely incompetent.  Those are the only two choices, given what the Fed has been saying for the past several months.

Here’s Bernanke back in August of 2011:

“Although important problems certainly exist, the growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years,” Bernanke said. He added that while it may take time, the United States can “reasonably expect to see a return to growth rates and employment levels consistent with those underlying fundamentals.”

Here’s Bernanke back in October of 2012:

“We expect the economy to continue to grow,” Bernanke said to the Economic Club of Indiana. “Our concern is not really a recession. Our concern is that growth will continue but at a pace that’s insufficient to put people back to work.”

And here he is again back in July:

“On the one hand, if economic conditions were to improve faster than expected, and inflation appeared to be rising decisively back toward our objective, the pace of asset purchases could be reduced somewhat more quickly. On the other hand, if the outlook for employment were to become relatively less favorable, if inflation did not appear to be moving back toward 2 percent, or if financial conditions–which have tightened recently–were judged to be insufficiently accommodative to allow us to attain our mandated objectives, the current pace of purchases could be maintained for longer.”

The New York Times sums up the absurdity:

“All summer, Federal Reserve officials said flattering things about the economy’s performance: how strong it looked, how well it was recovering, how eager they were to step back and watch it walk on its own.

But, in a reversal that stunned economists and investors on Wall Street, the Fed said on Wednesday that it would postpone any retreat from its monetary stimulus campaign for at least another month and quite possibly until next year. The Fed’s chairman, Ben S. Bernanke, emphasized that economic conditions were improving. But he said that the Fed still feared a turn for the worse.”

So is Bernanke incompetent?  He’s been saying the economy has been in recovery since 2011.  Is two years of “recovery” not enough to justify even a minor reduction in money printing?

More likely he’s a fraud.  He knows the economy hasn’t been in a “recovery.”  He knows that the economy is fully addicted to his funny money, and that cutting it off would bankrupt his banking syndicate, along with the state.  He knows inflation is running MUCH higher than 2% when food and energy are included and hedonic regression is taken out.  He knows the unemployment numbers he’s citing don’t include the people who have simply given up looking for work.

I call him a Lord because he is accountable to no one.  No complete audit of the Fed’s activities has ever been conducted.  There is no congressional committee that oversees the Fed’s day to day operations.  It is allowed to hide its policy decisions and meeting minutes for absurd lengths of time.  It’s board is appointed by a cartel of private banks.  And at the end of the day, if Bernanke wanted to intentionally destroy the entire American nation state, it is within his ability to do so.  That’s the closest thing to a God on this planet that I can think of.  Even the President doesn’t have that kind of unrestrained and unaccountable power.

So we either have a fraudster in command of the entire US economy, or we have a completely incompetent buffoon. Either way, we’re screwed.