In the end, that is what is plan amounts to – from the AP:
Federal Reserve Chairman Ben Bernanke on Friday offered his most explicit signal yet that the U.S. central bank was set to ease monetary policy further, but provided no details on how aggressively it might act.
Bernanke warned a prolonged period of high unemployment could choke off the U.S. recovery and that the low level of inflation presented an uncomfortable risk of deflation, a dangerous downward slide in prices.
“There would appear — all else being equal — to be a case for further action,” Bernanke said at a conference sponsored by the Boston Federal Reserve Bank…
To translate from the Bankster-ese, “ease monetary policy further” means “print up a bucket of money and give it to banks for more of their worthless assets”. What this means is that Bernanke will pick our pockets (printing money means the money we have becomes worth less than it was the day before Bernanke fired up the presses), and buy bonds from the banks. The theory is that the banks will then turn around and lend that money to us.
Please roll that around in your mind for a moment – Bernanke is going to take your money, give it to a bank on the understanding that the bank will lend your money back to you, at interest.
But it won’t work like that – banks can’t lend money as they need to keep high reserves on hands for all the worthless loans they’ve got on their books. Bernanke’s hope will fail him this time just as it did last time – the banks will likely just buy more US treasury notes…which means they’ll be taking our money to buy bonds from our government which we’ll then have to pay back to the banks with interest. This would be the biggest rip off in human history except that it looks like Bernanke won’t print up quite as much money as he did in the first round of easing monetary policy.
This just gets stupider by the moment. Definition of insanity – doing the same thing over and over again, hoping for a different result. Doubling the insanity is that the whole program is, ultimately, to spur inflation…because if we’re paying higher prices for things, Banksters think that is a sign of a healthy economy!
We don’t need to just audit the Fed, we need to abolish it.
UPDATE: Fire Bernanke!
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