Bernanke confirms bias towards easing

Ben Bernanke took another step on the US Federal Reserve's march towards more monetary easing with a speech that said the economic situation was “far from satisfactory”.

Linky

“Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labour market conditions,” said the Fed chairman.

Much of the speech was taken up with a review of the Fed’s actions since the financial crisis. Mr Bernanke argued that large-scale asset purchases aimed at driving down long-term interest rates – known as quantitative easing, or QE – have worked. “A balanced reading of the evidence supports the conclusion that central bank securities purchases have provided meaningful support to the economic recovery while mitigating deflationary risks,” said Mr Bernanke.

What color is the sky in his world?

Qualitative easing(the debasing of our currency) has not worked. It will not work to decrease unemployment. They have raped and ruined America. They have sent most of the good paying jobs to other countries. There can be no recovery without good jobs. The service economy cannot provide those kinds of jobs enmasse, industry must return to our shores before a real recovery can be realized. TPTB do not want that. That want us broken. They want us on the dole. They need that to happen before most Americans will accept the loss of sovereignty necessary for the one world government to take stage.

The Federal Reserve is such a joke. Here is a video of them trying to explain, or lack of explaination, of how they miss placed 9 trillion dollars.



I love how the guy tears her down. I would be suspicious of any activity of the federal reserve in the next few years.

QE3 will happen, so will QE4, 5, 6, 7 etc.
They will keep printing money until the entire system collapses under the stress.

Here's my question for Mr. Bernanke.

What assets?

Purchasing bank debt and calling it an asset is not the same thing as an actual asset, like land or purchasing gold.

The fact is the Federal Reserve is purchasing paper with "printed" money and artificially exploding the credit aggregates it was intended to control. Not only has it failed to control the expansion of credit aggregates it has intentionally and exponentially increased their manufacture through easing policy and interest rate manipulation.

This whole notion that the Fed is purchasing "assets" is insulting to anyone who thinks.

Originally posted by projectvxn
Here's my question for Mr. Bernanke.

What assets?

Toxic assets, purchased to artificially depress interest rates and rescue an insolvent banking system. Bad financial assets that have lost value to such a degree that there is no viable market in which to trade them. And as buyer of last resort, one could say the Fed itself is now technically insolvent.

The only mechanism supporting the ponzi is their ability to print more money, and Gold, the ultimate monetary barometer is sounding the alarm.

The quality of Bernanke's balance sheet is "old hat" for projectvxn; just thought I'd help fill-in the blank for those who may not be as familiar.

03 Sep 2012

Federal Reserve has already started QE3, says investor Jim Rogers

Veteran US investor Jim Rogers believes the Federal Reserve has already launched a third round of quantitative easing, despite chairman Ben Bernanke failing to mention stimulus measures in his Jackson Hole speech last week.

Mr Rogers, who co-founded the Quantum Fund with George Soros, believes that America's central bank is secretly printing money to avoid "getting egg on their face again" after previous attempts to kickstart the faltering economy with $2 trillion of QE failed.

"I do not know if they [the Fed] will announce it," he told India's Economic Times. "I know they are going to print more money. They already are. If you look at their balance sheets, you will see that something is happening, assets are building on their balance sheets and they are not coming from the tooth fairy. - Details