Bernanke: The Bonfire of His Inanity


Oh how the Street begged for it, this latest round of *additional* money printing just announced by the Fed. It’s their lifeblood, this irrational exhuberation off which masters of the universe (Tom Wolfe) thrive. So, like a dog returning to its vomit or a crack whore to the pipe, Bernanke just can not stop himself. It’s not that this Keynesian crappola works. It’s failed worldwide but Ben doesn’t know what else to do. He’s hooked.

I read where this variation will be Fed buying of mortgages, to drive down interest rates. What, like another 1/2 point off the 3/1/2 percent current rates is going to fix the housing market? But wait, Bernanke says the lower rates WILL cause people to buy homes because the homes sold will create jobs. Gee, in the real world the jobs come first and then people buy homes and furniture to put in their new home.

Unfortunately, the Fed doesn’t do real world or Austrian economics. So the pumping accelerates just in time to pimp for Obama. There’s an election you, know. The little intellectual elite hopes this helps someone besides Goldman Sachs and the Oracle of Omaha. Obama may get a little rise out of it as the market probably will inflate (Dow up over 200+ yesterday). It comes down to what helps the average American . . . the illusion of a healthy stock market vs $5 gas and $5 bacon. Does the Ben even know about $5 bacon? Probably not.

Until Mitt is inaugurated this January, the money printing will surge and the Bernanke bonfire will rage. In the first 100 days of the Romney administration, this disastrous dollar deflation of the Fed must end and Bernanke must be given his pink slip. His vanity will survive. No so sure about Barack.

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September 14, 2012 10:44 am

This chart that shows employment-population ratio from Truman thru Obama is why Obama is a failure. Recessions are a natural occurrence, but every previous recession had a V-shaped recovery until this one.

September 14, 2012 11:30 am

The sad commentary on the boys at Wall and Broad is that rather than taking their cue from the events in the Middle East, they take their cue from Bernanke. Do they think their quick buck they make today can be safely stashed ANYWHERE?
These days you have to pay somebody to hold your money for you. The few legitimate professional economists left in the world are over 80 years old. No continuity, no learning from history, no ‘handshake’ (see Bushmills) and no vision. Just a Rick Santelli or two screaming madly “Stop it! Stop it!”

September 14, 2012 11:31 am

It’s the same reason that sooner or later the whole house of cards will come down both here and in Europe. Like gravity, you can only defy the laws of economics for so long. Anticipate a stock market rally as investors flee the bond market bubble so that they can participate in the Bernanke Stock Market Bubble.
But it won’t end well.