Did you see Ben Bernanke's testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true. Bernanke insists that the economy is getting much better, that quantitative easing will lower long-term interest rates, that all of this money printing by the Federal Reserve is not causing inflation and that the Fed knows exactly what needs to be done to dramatically reduce unemployment inside the United States. So is anyone out there still actually buying what Bernanke is selling? Sure, a handful of people in the mainstream media still have complete faith in Bernanke. But for the rest of us, it is becoming increasingly clear that there is something really "off" about Bernanke. So just what is going on with him? Is he lying to all of us on purpose? Could he be insane? Is he just completely and totally incompetent?
Bernanke's track record of failure is absolutely stunning. Before discussing some of his most recent comments, let's review some of the pearls of wisdom that Bernanke has shared with us in recent years....
2005: "House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals."
2005: "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."
2006: "Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."
2007: "At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."
2007: "It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions."
2008: "The Federal Reserve is not currently forecasting a recession."
So should we believe anything that Bernanke is saying now?
Of course not.
Obviously Bernanke has been feeding us all a whole bunch of nonsense for a very long time.
So what conclusion should we come to about Bernanke at this point?
Well, as I see it, there are three primary alternatives....
1 - Bernanke knows that what he is telling us is wrong and he is purposely trying to deceive us. That would make him a liar.
2 - Bernanke actually believes what he is saying because he is completely delusional. That would make him a lunatic.
3- Bernanke actually believes what he is saying because he simply does not understand economics. This would make him completely and totally incompetent.
In any event, someone with Bernanke's track record should not still have such a high level job. He should have been asked to resign long, long ago.
But instead, Obama nominated him for another term and he was approved by our incompetent Congress.
It is a crazy world in which we live.
So what is Bernanke saying now?
Let's take a look at some of his main points.....
Read more:
http://theeconomiccollapseblog.com/archives/is-ben-bernanke-a-liar-a-lunatic-or-is-he-just-completely-and-totally-incompetent
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