The following quotations from Ben Bernanke, Chairman of the Federal Reserve are taken from the transcript of his June 3 speech to Congress. All emphasis marks are mine. The reader should be aware that I have very short fuse when dealing with Mr. Bernanke. To discover why, please read “Bernanke's Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)” for more details. (emblem)
“The U.S. economy has contracted sharply since last fall, with real gross domestic product (GDP) having dropped at an average annual rate of about 6 percent during the fourth quarter of 2008 and the first quarter of this year. Among the enormous costs of the downturn is the loss of nearly 6 million jobs since the beginning of 2008…. According to the CBO's estimates, by the end of 2010, the stimulus package could boost the level of real GDP between about 1 percent and a little more than 3 percent and the level of employment by between roughly 1 million and 3-1/2 million jobs.”
Nevermind the fact he is understating the actual number of job losses, but what he in effect is saying is:
“We, the FED, have helped instigate a new Depression, and the Obama Stimulus Plan is going to fall flat on its face. GDP dropped by way over 5% for the past two quarters, and we would be lucky to get a 2% increase from the Stimulus. The economy shucked way over 6 million jobs, job losses are continuing to mount and the Obama Stimulus Plan will be lucky to get back a quarter of that. Perhaps if the FED had not manipulated interest rates (slide 40), helped suppress the price of gold, and regulated OTC derivatives, this mess would be a lot less severe. Sorry about that.”
“Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth… Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance.”
“We are screwed because we are spending like drunken sailors!! Those Austrian economists are right!! Just look at the White House budget for the next ten years, and keep in mind the figures after 2011 are wildly optimistic.”
“See the $2 trillion deficit for 2009 and the $1 trillion deficit for 2010 and 2011? That's our doom staring back at us, although our rampant printing of money might ease the pain for the elite few a little bit. See the tax increases in 2012 and 2013? We are going to try to increase income taxes or implement carbon taxes or some other nonsense so we can jack up tax revenue by 25%, but hopefully we can hold off on this until Obama is re-elected.”
Source: Pages 26-27 of 344 in the White House's FY 2010 budget
Bernanke: “In this environment, we anticipate that inflation will remain low.”
Translation: “We don't really have any clue what is going to happen next as we are in uncharted waters. The credit markets are opaque, so it's even possible we may deflate for a few years until we hit a Misesian crack-up boom and the currency fails through hyperinflation (though true CPI/inflation is around 7% . However, hopefully we can get inflation instead by creating lots of lots of new money (or “inject liquidity”) and keep it from spiraling into hyperinflation. Good thing many Americans still do not understand how the FED works.”
“As a consequence of this elevated level of borrowing, the ratio of federal debt held by the public to nominal GDP is likely to move up from about 40 percent before the onset of the financial crisis to about 70 percent in 2011. These developments would leave the debt-to-GDP ratio at its highest level since the early 1950s, the years following the massive debt buildup during World War II.”
Translation: “My international banker and military-industrial complex friends love these profit-making opportunities. War truly is a Racket, just like the highest-decorated officer in the history of the Marine Corps, Major General Butler, once figured out. Too bad too few listened to him, otherwise I would not have a job.”
“Let me close today with an update on the Federal Reserve's initiatives to enhance the transparency of our credit and liquidity programs… We expect to begin publishing soon a monthly report on the Fed's balance sheet and lending programs that will summarize and discuss recent developments and provide considerable new information… We will continue to look for opportunities to broaden the scope of the information and supporting analysis that we provide to the public.”
“Crap. I really can't believe 190 Representatives have co-signed H.R. 1207, Ron Paul's bill to audit the FED. It's a good thing my international banker friends have pretty much bought the Senate, that 17th Amendment of 1913 that my forefathers got passed along with the Federal Reserve Act of 1913 is a real lifesaver! We will keep throwing sand in Congress' and the American peoples' eyes for as long, as hard, and as fast as we can.”
Please check here to see if your Representative have co-signed HR 1207, the Federal Reserve Transparency Act of 2009. I also recommend contacting your Senators (the bill there is known as S 604) and writing directly to the Financial Services Committee at this link. It's time to fight back.
For the Republic,
Jake Towne, the Champion of the Constitution
Jake Towne is running for U.S. Congress in Pennsylvania's 15th District in the 2010 election as a citizen unaffiliated with any political parties. Jake also writes at www.LibertyMaven.com and www.CampaignForLiberty.com. A master campaign presentation for internet viewing is available. [Reach the Author Here!]
PostScript – You can listen me describe the above in Part 2 of this interview with the anonymous author of the pamphlet “Common Sense Revisited” from Wednesday. Topics covered in the interview include the FED, governomics, and gold.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.
Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.
“Intelligence is quickness in seeing things as they are.” – George Santayana
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