Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

usawatchdog.com

Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week. I was dumbfounded when I saw Bernanke shake his head in the affirmative as Representative Ron Paul said, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.” I was amazed he admitted this. I looked up the original hearing on C-Span to make sure the clip was not edited. It was not.

(visit the link for the full news article)

I think we all new that the Fed liked printing money out of " thin air " ?

The report also went on to say ..

Anyone with a savings account or money market denominated in dollars should be terrified. You have scrimped and saved only to have the Fed print money and devalue what you have worked so hard for! Inflation has been chosen for you by the Federal Reserve, and we the taxpayers can’t even audit its actions. Below is the video from the Joint Economic Committee Hearing last week. Watch for yourself Bernanke nod yes to printing $1.3 trillion:

This brings up a good point , the devaluation of the dollar . I wonder if we will ever see this topic covered in depth by the MSM ? For some reason I highly doubt it

And here is a video of Mr. Paul given Bernake what for ..



usawatchdog.com
(visit the link for the full news article)

Good article and video. Thanks for posting.

I have really felt uneasy about depositing money lately.

I just want to buy some physical gold and sit for a while, but of course the fam says thats stupid...

We'll see how it all shakes down soon enough.

Star and Flag.

I have been updating this thread about the precious metals manipulation, especially gold:
Gold Rush 21 (Documentary)

The article you posted mentioned the rise of gold price, and sooner or later enough people are going to find out that the reserves are damn near empty in places like Fort Knox. What happens then is what the documentary is about, from the Gold Anti-Trust Action Committee.

reply to post by beebs


Gold?

The best thing to invest in for hard times are the following:

Cigarettes
Alcohol
Crack and/or Heroin

Sure, it's morally disgusting but when times are hard people will spend their last cent on whatever overpriced stockpile they can get, and are addicted to.

[snip] Bernenke, how careless is yuor bussiness markets and wallstreet. thanks alot [snip].
God do i hope the market crashes and peolpe go looting, not on the streets, but on capitol hill and at the federal reserve, remove it brick by brick form the map.
so here we see, how bad our governemnt intends to lie and use us and give nothing back to us at all. all fo them LIARS



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[edit on 2/5/10 by masqua]

Cool hopefully the system collapses. I'm already broke and lost everything so it don't matter to me. I'd love to see it catch up with the upper class. I'm waiting down here with my pitch fork.

Originally posted by beebs
I just want to buy some physical gold and sit for a while, but of course the fam says thats stupid...

Well, it probably is stupid, with all due respect.


Gold isn't a magical commodity that is SURE to increase in value year over year, forever. And if it was, the price of gold would already be factored into the market, and you would be paying a very high premium on your gold, and its return wouldn't be very high. In other words, it would be a poor investment.


Now is probably the most risky time to buy gold, imo. I'd probably be looking to sell gold, instead -- especially if it goes above 1200 an oz, again.

But if you really don't believe that gold has its risks, take it from this inflation adjusted data chart:
inflationdata.com...

If you had bought at its peek in 1980, you'd still be holding onto an investment that has lost money, instead of made money.


P.S.

If you buy gold, don't buy coin gold -- it always comes at a premium, which cuts into your profits. And if you're buying gold in case of some apocalyptic crisis, don't bother -- buy food, instead. Gold will be worthless if the world markets ever collapse.

Originally posted by wantsome
Cool hopefully the system collapses. I'm already broke and lost everything so it don't matter to me. I'd love to see it catch up with the upper class. I'm waiting down here with my pitch fork.

Well I am hoping the same thing. My college loans would then be worthless and I wouldn't have to payback the money. But with my luck currently I would win the lotto and the next day the dollar would be worth jack.

Geez.
Why not just print out several more Trillion dollars and pay off the national debt?

Please, PRINT MORE.

Just mail it out to every American, say $3,000,000.00 each.

Imagine, we could all buy a house....

c'mon folks
we all knew it was coming
now we have to move forward
from here, be prepared

The question is...IF the economy goes completely down the toilet WILL bernenke be held accountable then? I wonder how much money was printed and simply given to his friends in a freindly envelope or handshake gesture*

C'mon, quit the fear mongering already. It isnt gonna help anyone, not even those bankrupts who have nothing now. They need to eat tomorow. Where's that money gonna come from?

Let's get objective and rational. Do watch the clip.

Where does the money comes from?

Simply, it comes from loans. They are a huge and obscene of money kept hoarded up by private individuals. Trillions of dollars printed over the years, earned and transacted with value, do not disappear into thin air.

Trillions of dollars are now sitting at home and not being circulated. At some point it will have to come out by instituting monetary policies such as devalution or printing more money, or giving higher interest rates, etc.

To explain simply:-

Suppose you are only earning $2000 a month. Yet your neighbour saw you drive a camero, parked it in your home and heard you claimed that you owned that car. Where did the money to buy that car came from? Thin air?

Answer: Loans, with interest payments.

Same on the a national scale to meet society needs.

Kick the Corporation now that they are on their knees by all means, but the innocents must be spared. There is money and there is still resources with the tech advancement to use it wisely to last for thousands of years to feed the world's population several times over.

Only the political will and some selfish humans in this world is preventing it.

[edit on 2-5-2010 by SeekerofTruth101]

In reality...what does printing $1.3 billion mean for us? money that isnt supposed to be thier* Will in in fac, cause inflation? or is that just theory? and if so, how long till his money printing catches up to us and wallstreet?

reply to post by Kaytagg


Well assuming the world doesn't end, then I think it'd be a good investment.

And also, the price of gold is artificially low right now(which is what the thread I linked to is about, I welcome your input to the discussion there) - so I think it will go up kind of inversely proportional to the fiat oil reserve notes dropping.

Other countries that have not given in to the fiat crap so much have been buying gold - real gold, not unallocated fractional investments - with their hard earned currencies thereby shifting actual wealth to their countries as the price of gold inevitably goes up.

They are stocking their reserves, while ours are emptied out to keep their currencies debased and artificially suppress the price of gold. Rockefeller dollars are corporatist dollars are oil and weapons and drugs dollars.

Like you can see being pointed out in this article and vid, the dollar is going down. So investing in real physical gold now before the SHTF(like when people find out the reserves are empty) can preserve some wealth that could be transferred back to currency if necessary when the economies stabilize and are reorganized.

I would hope that we could use technology to bypass the whole monetary economy thing and become sustainable local groups, but who knows.

My 2 cents.

Money is debt.
Debt has value.
Lets trade debt.

You see, Bernanke just created another 1,3 trillion units of debt to trow it on everyone's head. That is exactly what they do - enslaving, enslaving and more enslaving...

God is a Banker.

Actually he didn't print it out of thin air (Now, that would be a trick) He didn't print it at all, he just wrote it down

But yes: Increasing money supply will increase inflation, and devalue the dollar compared to other currencies.
A weak dollar is of course good for US Exports, since US Goods will be cheaper abroad. Inflation is an incentive to invest your dollars instead of having them sit at home, also stimulating the economy.
Both things of course are bad if they get out of hand, but a little infaltion is a good thing.
Now, M2 Money supply in the US is 8500 trillions. A 1.3 Increase won't have a noticable impact.

Originally posted by Kaytagg

Originally posted by beebs
I just want to buy some physical gold and sit for a while, but of course the fam says thats stupid...

Well, it probably is stupid, with all due respect.


Gold isn't a magical commodity that is SURE to increase in value year over year, forever. And if it was, the price of gold would already be factored into the market, and you would be paying a very high premium on your gold, and its return wouldn't be very high. In other words, it would be a poor investment.


Now is probably the most risky time to buy gold, imo. I'd probably be looking to sell gold, instead -- especially if it goes above 1200 an oz, again.

But if you really don't believe that gold has its risks, take it from this inflation adjusted data chart:
inflationdata.com...

If you had bought at its peek in 1980, you'd still be holding onto an investment that has lost money, instead of made money.


P.S.

If you buy gold, don't buy coin gold -- it always comes at a premium, which cuts into your profits. And if you're buying gold in case of some apocalyptic crisis, don't bother -- buy food, instead. Gold will be worthless if the world markets ever collapse.

When SHTF gold is always one of the only accepted forms of payment. Time for you to read history books.


[edit on 2-5-2010 by ickylevel]

Originally posted by debunky
Now, M2 Money supply in the US is 8500 trillions. A 1.3 Increase won't have a noticable impact.

Sorry debunky, the M2 number is 8500 Billion so adding 1.3 Trillion (1300 Billion) IS a big thing.

reply to post by ickylevel

When SHTF gold is always one of the only accepted forms of payment. Time for you to read history books.

How much gold there is? Do you know? Does anyone know? Right now, gold is as good as Bernanke's inventiveness.

It will be as they SAY it is supposed to be. As long as someone doesn't invent his own, exclusive means of payment - which normally means war.

Inflation isn't good for those who have to import repro-material, but since much of basic industry has been outsourced from the USA, maybe it is an acceptable political decision?

Perhaps, now everything depends on how China will treat consumers of their goods