Fed Chair Bernanke: “The Fed is Printing Money”

March 16th, 2009 Jr Accountant

After Federal Reserve Chairman Ben Bernanke appeared on 60 Minutes last night, few noted little from his speech besides his insistence that the recession should calm by the end of 2009 and signs of recovery might start popping up like little spring buds beneath the melting snow of a cold hard winter some time in 2010. The man is delusional at best, and the markets reacted by snapping a three-day upward swing (if you call 2 or 3 points “upward”). Sadly, Bernanke’s song and dance on national television resonated across America as a sign that things might be looking up. Hell, if this guy says everything is going to be okay, who are we to question?

Well the answer is simple, and if I’ve got to explain to you what is wrong with last night’s appearance, perhaps you’re not grown up enough to be using the computer without supervision. Turn it off, curl up into a ball, and commence to existing with your head in the sand, k?

In case you missed it, Bernanke’s national TV debut may be found in 3 parts here, here, and here. How cute, Helicopter Ben even cleaned up for his interview. That’s absolutely adorable.

Hidden in the midst of Bernanke’s interview, a little-noticed point on the Fed’s action in the face of economic crisis. While the conservatives continue to rail against the endless bailouts on behalf of helpless taxpayers believing that the Fed and Treasury promises are funded by actual taxpayer cash, Chairman Bernanke spilled the beans last night and said in no uncertain terms that his Fed is in fact funding bailouts using a process “more akin to printing money than it is borrowing.”

Average Joe reading this article, or even the most enlightened of conservatives, may not even think twice about the issue. Who cares? Isn’t it the Fed’s job to print money?

Under normal circumstances, absolutely. But in these conditions, Bernanke’s quantitative easing scheme will be the end of the dollar as we know it. Does he believe that inflation is so low that his agency has the right to crank up the presses to cover the incessant bailout of commercial banking interests at the detriment of our economy? This equates to criminal currency debasement and should absolutely be treated as such.

For our Fed chair to believe he can boldly state on national television just days after a warning from the United States’ largest creditor that we better not use the printing press to stem financial crisis is not only moronic but may send China reeling against our pleas for help in unloading our debt. And if China pushes back on Treasurys, we might as well consider the game over.

You as an American taxpayer have every right to be angry over the bailouts. And you should still believe that taxpayers are some how on the hook for this. But you as an American under the Federal Reserve’s control should be absolutely outraged to hear Bernanke boasting that his Fed is cranking up the press to the tune of some $2 trillion to cover its creative lending programs. AIG has fed at the government teat FOUR TIMES and funneling bailout funds to foreign banks due to its own irresponsible financial products risk management. But $2 trillion on the taxpayers’ behalf means little when the Fed is using the press to pump capital into floundering firms on your dime - the savings you’ve worked your life to put away? Doesn’t matter when the Fed has fully debased the currency. Is 97% of the dollar’s value lost since its inception in 1913 not enough?

The recession will only worsen moving forward if the Fed and Treasury continue to sabotage any hope at recovery by throwing billions more into the sinking ship.

Unemployment will continue to surge.

The Fed will continue to overstep its given powers by Congress and Congress will continue to allow such a fleecing until someone on Capitol Hill stops looking the other way and demands an audit of this private and essentially unregulated agency.

And Ben Bernanke will continue to crank up the press. Here’s to hoping China doesn’t notice or else we’re really in trouble.

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Spending America’s Future into Oblivion

March 10th, 2009 Billy Hallowell

Ideological Barriers to Change

As Americans cope with immense fiscal challenges, Congressional spending continues to spiral out of control. Living out Rahm Emanuel’s tweaked philosophy of never allowing “a serious crisis to go to waste,” Democrats are spending at an enigmatic rate – and some Republicans are following suite.

According to The Wall Street Journal, back in Nov. 2008 Emanuel told a group of corporate chief executives the following:“Things that we had postponed for too long, that were long-term, are now immediate and must be dealt with. This crisis provides the opportunity for us to do things that you could not do before.”

These are not the words of a fiscally-conscious lawmaker. “Things” that could not be done before – like what? And if “things” could not be afforded before, how would the nation, in the midst of a financial melt-down, suddenly have the resources to finance said “things?”

Clearly, Emanuel is speaking about ideological policy here, not systematic reform. This is not the time to sacrifice the future by printing money for the purposes of furthering the Democratic perspective. The most recent bailout and the subsequent spending bill that has already cleared the Senate are so poorly comprised and so detrimental that they can only result from such an ill-focused outlook.

And perhaps most preposterous was Emanuel’s assertion that the current climate will foster the hopenchange, bi-partisan rhetoric that Obama thrived on during the campaign: “The good news, I suppose, if you want to see a silver lining, is that the problems are big enough that they lend themselves to ideas from both parties for the solution.”

Good news? Silver lining? Despite such talk of bipartisanship, Washington is more divided than its been in decades, as the most recent stimulus had not one of the House’s 178 members voting in its favor. As Republicans and a small group of Democrats rally to control spending and vote down abuses, their colleagues have chosen to continue wasting tax-payer dollars, while abusing the powers that have been bestowed upon them by the American people.

Recent Fiscal Abuses

While most Americans are facing unemployment prospects and struggling to meet their most basic needs, out-of-touch Congressional members have slipped thousands of irrelevant pet projects into the latest spending bill that President Obama promises to sign.

Back in Sep. 2008, Obama said, “…when I’m president, I will go line by line to make sure that we are not spending money unwisely” – a promise he has already broken. One cannot help but wonder what happened to Obama’s campaign pledge to take “a scalpel” to bills that contain pork-barrel spending. Instead, massive spending and fiscal deviance have dominated.

At this rate, it’s becoming difficult to follow just how much money Congress has spent. First, there was the stimulus passed by Bush and the Democratic Congress at the end of 2008 (over $700 billion). Then came Obama’s $787 billion stimulus package – cleverly entitled “The American Recovery and Reinvestment Act.” Now, Congress is slated to pass a $410 billion omnibus spending bill. The bill, intended to fund the government through the end of the fiscal year, is wrought with pork.

According to Taxpayers for Common Sense, it contains 8,570 earmarks, totaling $7.7 billion. A mere glimpse at the projects that have been inserted showcases a lack of Congressional responsibility and moral fabric. In this case, both parties are to blame. While Democrats have been leading the charge to irresponsible spending, Republicans who have earmarks in the bill are jumping on board in hopes that their projects will be funded.

The irresponsibility is paramount. At a time when Americans are hurting, Rep. Jerrold Nadler has earmarked $381,000 for Jazz at Lincoln Center, with Sen. Lindsay Graham is attempting to filter $950,000 to the Myrtle Beach International Trade and Convention Center. Additionally, $800,000 was earmarked for the purposes of “oyster rehabilitation” – whatever that means. And these are only a few examples (remember, there are nearly 9,000 to choose from). Clearly, these pork-laced projects have little to do with helping the American government meet its operating costs and everything to do with unpatriotic, self-interest.

Now, more than ever, America’s lawmakers need to cut unnecessary costs. As President Obama asks Americans to use less electricity, to trust his administration and to have faith in the system, he must also ask Congress – and his inner conscious – to make similar concessions. Our nation is deep in debt and the longer the people stand idle, the more tattered the country’s future will be. Now is the time for rhetoric-free, action-based fiscal conservation.

For more information about Billy Hallowell, go to www.williamhallowell.com.  For booking information about Billy and other speakers and programs, go to www.pathufindmedia.com. 

Technorati Tags: Fiscal Irresponsibility,President Obama,Congress,Omnibus,Spending bill,Stimulus,Federal Debt,Deficit

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