Ben Bernanke Testifying before Congressional Panel NOW

Ben Bernanke Testifying before Congressional Panel NOW

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BERNANKE ON FISCAL POLICY:

"One crucial objective is to achieve long-run fiscal sustainability. The federal budget is clearly not on a sustainable path at present. The Joint Select Committee on Deficit Reduction, formed as part of the Budget Control Act, is charged with achieving $1.5 trillion in additional deficit reduction over the next 10 years on top of the spending caps enacted this summer. Accomplishing that goal would be a substantial step; however, more will be needed to achieve fiscal sustainability."

"A second important objective is to avoid fiscal actions that could impede the ongoing economic recovery."

BERNANKE ON INFLATION:

"As the FOMC anticipated, however, inflation has begun to moderate as these transitory influences wane. In particular, the prices of oil and many other commodities have either leveled off or have come down from their highs, and the step-up in automobile production has started to reduce pressures on the prices of cars and light trucks. Importantly, the higher rate of inflation experienced so far this year does not appear to have become ingrained in the economy."

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Related News Links:
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www.federalreserve.gov

So Bernanke is saying all is well. Still some work is needed, but everything is going to be hunky-dory.

Inflation isn't long-term, apparently. So why am I still paying 150% more for basic foods than I was a year ago? Seriously, go check the prices of rice, beans, wheat, cereal, GAS, meat, etc.. All the essentials are much more expensive than they were just a year ago.

I can't watch the live broadcast but have included a link to Bernanke's prepared speech below. If anyone can watch, please comment with anything of importance!

Does anyone else feel like these people make speeches to restore consumer confidence, allow the market to grow, then pull out the bottom and let it crash on purpose?

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I am listening now. I find it amusing that we never are treated to any explanation as to the nature of the relationship between our central bank and those of the rest of the world. Bernanke has stated that they use IMF data to make their decisions. But he hasn't offered any insight into the extent of influence on monetary policy the supranational banking cartel exerts on our so-called "quasi-governmental" agency.

It is amazing that the central bank, who has a legislated monopoly on monetary policy (how much money exists, and what rate of interest we pay for the privilege of borrow it from them.)

If we formulate and plan out fiscal policy based on current monetary policy, what guarantee do we have that the foundation of monetary policy won't change acceding to the 'judgement' of the bankers? It is their unilateral authority to manipulate monetary policy which engenders the situation where most of the "too-big-to-fail" bailed-out banks are richer and hold more money than they ever have... to the tune of 60% of the US's GDP ... sitting in their coffers, and unavailable to anyone who is not within the corporate channels to even try to access it.

They are also asking Mr. Bernanke for 'opinions' that are neither relevant tot he national will, nor pertinent to fiscal policy development.

It is interesting that Mr. Bernanke firmly established that when opining over the job situation, he clearly asserted that "I'm talking about corporations, not banks." He wanted to make clear that the bank cannot regulate corporate conduct. But by providing the hoops and provisions of financial vehicles; it is precisely what they achieve.

Mr Bernanke has saved the financial institutions, the banks.... that was his only concern. They are richer, safer, and more powerful than ever. The people are, on the other hand, generally poorer, in more peril, and less empowered.

During the testimony "real" unemployment is actually 16%, not the 9% the establishment proclaims.

Interestingly, the populist rhetoric regarding wealth distribution was presented to him for show. But he responded by starting out with "In the shorter term" working and middle class takes the brunt of unemployment,.and that that reducing that would help move the numbers towards something less repugnant; he mentioned educational efforts, and then oddly, he pointed to China's policies that affect our economy.

Then Bernanke was served a sticky wicket about banks engaging in risky investment activities and the upcoming rules which originally were scripted to eliminate the "moral risk: that was volleyed back because the rules aren't in place yet. Apparently the details are being "run down" to the point of a major loophole being inserted to accommodate the banks freedom to continue the practice.

Then the "R" word came out... "reform".... Bernanke's response was that there needs to be a credible plan (what does that mean?) but segued to tax code reformation.... evidently, banking reform is not in the realm of entertain-able possibilities. the representative clearly did not mean to imply banking reform, so I got the impression those particular questions were "user friendly" - not saying "arranged" but still "slow pitch."

When Bernanke was told that the effect of the bankers actions was to make it easier to borrow for the federal government, which was not serving the purpose of encouraging reform. He was not asked to respond, but he insisted on responding. Another interesting statistic is that 40% of the money the federal government borrows comes from the central bank itself.

Well, my time for listening is done.... this is "must hear" testimony.... by all means listen to it when you can.

Thank you for the updates.

I often watch the Budget Committee, you can tell they have a close relationship with the FRB committee and chairperson. I'm not surprised at all to hear Bernanke is getting, to use your very accurate term, "soft pitches."

Also not surprised at all to hear him divert attention to external problems, and attempt to lay the blame on anything and everything other than where it truly lies. I am not a huge fan of regulation, but it seems banks and corporations cannot be depended upon to fairly regulate themselves.

I find it interesting that Bernanke mentions in his prepared speech that the trade deficit is declining. He gives a lot of reasons for this but fails to mention the devaluation of the dollar. I still maintain that the USD was devalued intentionally as a monetary control mechanism to increase exports and lower the trade deficit.

But, as you said, banking and financial institutions are increasing profits, and that MUST be a sign that the economy is improving. It really, really seems that Bernanke is calling on local and federal government to increase spending once again to help spur on the recovery which leads me to believe that another round of Quantative Easing is coming our way - which will only serve to increase the inflation that Bernanke is claiming is temporary and unsustained.