Ben Bernanke's Banksters Legacy
With Ben Shalom Bernanke set to depart on the last day of January 2014,
the critique and speculation of his tenure as Chairman of the Federal Reserve begins. The mainstream financial press is giving
mostly favorable accounts. Heretofore, such praiseworthy acclamations strike a shape contrast with the actual record of the
state of the economy. However, the admirers of the Fed and his specific enactments live in a time warp that only masters of
the universe encounter. For the remaining population, an intense struggle for survival is the actual experience, remembered
from the Bernanke years.
Investopedia expresses a complimentary score of The Legacy Of Ben Bernanke, and cites distinguished highlights and concludes that "Under Bernanke’s
stewardship, the Fed became the most transparent it has ever been in its history."
Yet, they are compelled to mention that from 2008 onward, Bernanke and the Fed embarked on a series of unparalleled
– and often unconventional – rescue programs and stimulus measures. These included:
- ratcheting interest rates down to the lowest levels in American history;
- force-feeding the U.S. economy with trillions of dollars through successive rounds of "quantitative easing";
- bailing out troubled Wall Street firms and institutions;
- orchestrating the rescue of other troubled financial institutions through shotgun weddings; and
- lending funds to diverse sectors of the U.S. economy to revive stalled credit markets.
Ben Bernanke's Great Inflation
Coverup, is an assessment that one would expect from the Mother Jones publication.
"Bernanke's problem is pretty simple here:
he almost certainly wants higher inflation . . . Once the Fed has reduced interest rates to zero, it can't go any further.
But what if the economy is so bad that all the standard models suggest you need negative interest rates to get the economy
back on track? The only answer is higher inflation. If inflation is running at 2% and interest rates are at zero, the real
interest rate is -2%. If you borrow money, you're effectively being allowed to pay back less than you borrowed."
Then there is the valid point made by Bill Sardi in LewRockwell.com. "The Fed been printing new money at the rate of $85 billion a month
which is being distributed to close member banks who are gambling it on the Wall Street stock market to recapitalize themselves
rather than lending it out into the economy so citizens can buy new homes, automobiles."
The example of Paying back retirees with
cheaper dollars illustrates the real costs of built in systemic inflation, not just for
citizens on a fix income, but for everyone. This lost in purchasing value of the currency is obvious to any honest person.
"The average social security check was $321 in 1980 and in 2011 it was $1183
(adjusted for inflation). But if that $321 pension check were to be fully adjusted for inflation according to way inflation
was calculated in 1980 (cost of gasoline and food included), then that $321 should be $3636 to have the same purchasing power
The severity of income disparity has
reached staggering levels. Elite insiders game the system with insider speculation certainty, while the constructive producers
that keep the real components of the economy functioning, are pushed to the margins.
Bernanke’s real legacy produced the following outcomes. The always-reliable ZeroHedge site states some undeniable facts under Bernanke’s watch.
- The US has never experienced 3% GDP growth.
- The labor participation rate has fallen to levels
not seen since the ‘70s.
- Inflation-adjusted median incomes have fallen 7%.
- The US’s debt load has risen from $8.4 trillion to over $16 trillion.
- The Fed’s balance sheet has increased from
$800 billion to over $4 trillion (larger than the economies of Brazil, France and even Germany).
- Food prices have hit record highs fomenting revolutions
in the Middle East and untold suffering around the globe.
- The Fed has funneled trillions of Dollars into both US banks and European banks.
- The Fed has allowed fraud, insider trading, and
The banksters demanded a bailed out because their derivative
greed exacted losses that required an immense infusion of liquidity to rescue their balance sheets. Under Bernanke, the titans
of finance have an unlimited line of near zero rate interest of new credit. When the establishment financial press applauds
the savior of the economy, their loyalty towards corporatist governance, dictates that the economic interests and the public
welfare of ordinary people is expendable.
Look to a prime example of
this concentration of wealth and control. The Global 1%: Exposing
the Transnational Ruling Class by Peter Phillips and Kimberly
Soeiro, focus on BlackRock.
is one of the most concentrated power networks among the global 1 percent. The eighteen members of the board of directors
are connected to a significant part of the world’s core financial assets. Their decisions can change empires, destroy
currencies, and impoverish millions. Some of the top financial giants of the capitalist world are connected by interlocking
boards of directors at BlackRock, including Bank of America, Merrill Lynch, Goldman Sachs, PNC Bank, Barclays, Swiss Reinsurance
Company, American International Group (AIG), UBS A.G., Arab Fund for Economic and Social Development, J. P. Morgan Chase &
Co., and Morgan Stanley."
These crony capitalists are
the prototypes that benefited from Bernanke decisions. During the Bernanke
era, the debt bubble entered the point of no return to solvency. His place in the history of shame sets the stage for further
economic turmoil. The Federal Reserve
after Ben Bernanke article indicates that the Fed is boxed into a pattern that is likely
to escalate out of control.
the uninterrupted, increase in federal debt, much of which is held by the Federal Reserve, the prospects of achieving prosperity
by growing the economy, when interests rates have been near zero, failed miserably. It becomes almost absurd to believe that
higher rates on Treasury Bonds will succeed. The new chair of the Fed will be hard pressed shutting down Quantitative Easing."
A depression in the real economy is foreordained with the
retraction of credit to most enterprises. This starving of access to funding is a conscious and deliberate strategy to force
competition out of business. The grand scale that the banksters operate on has little room for upstarts or hanger-on’s.
At the end of this very destructive Bernanke term, the rich got fabulous more wealthy, as the country sinks into decline on
so many levels.
James Hall – January 22, 2014
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