Never fear, the Fed (money-pump) is here!
Ben "Bubbles" Bernanke and the Fed's FOMC will meet this week and Wall St is expecting Bernanke to announce a doubling of the Fed's program of monetizing US debt.
Currently, the Fed is monetizing about $40 billion/month in mortgage debt, and has continued its program of monetizing an additional $45 billion/month of US government debt by swapping short-term US debt for long-term US debt under its continuing program (sorry, the name escapes me as I type this).
But this week, due to the on-going weakness in the economy (yes, the same one Michelle Antoinette termed a "huge recovery"), Wall St is now expecting the Fed to begin a NEW program of monetizing even MORE US government debt. It is widely expected that the Fed will monetizing an additional $40-$45 billion/month, to be announced this Wednesday!
This is why, despite worsening economic indicators since this last summer, the stock market has continued near five-year highs, and Wall St has continued its Pollyanna Party, dismissing the endless parade of bad news as just "temporary" ("Hurricane Sandy did it, Mommy") or merely anecdotal singular events.
The Fed has so pumped up the stock market bubble that news, data, and analysis are no longer even relevant in this "bubble" mirage economy. In a November 2010 op ed in the Wall St Journal, Bernanke boasted of his ability to endlessly pump up stocks, even referring to asset bubbles (stocks, housing, and remember the now-forgotten "sub-prime" mortgage bubble?) glowingly as "the wealth effect". Bernanke literally considers all his bubble blowing as a GOOD THING!
When Bernanke, in one of his few interviews with the news media, told Scott Pelley that 1) he wasn't printing money, and that 2) he wasn't monetizing the debt, he was boldly lying to the American people, counting on the ignorance of the vast majority of them.
While technically, he was correct in saying that the Fed doesn't literally "print" money any more, he intentionally misleads people, because the Fed DOES create money out of thin air. They do it in a computer now, not with a printing press. But this same Bernanke gave his now-famous "helicopter" speech by boasting of the Fed's "this thing called a printing press" (HIS own words). He then denied to Pelley what he had previously boasted about?
And in #2 above (Bernanke's claim that the Fed is NOT monetizing the national debt), he blatantly and LIED bold--faced to the American People. The Fed has monetized more than 90% of the issuance of long-term US government debt in the past 4 years, adding nearly $3 trillion of government-issued debt to the Fed's balance sheet, and plans to increase its balance sheet of US debt to more than $5 trillion in the next two years. If that's not "monetizing the debt", Mr. Bernanke, what IS? Ah, that's right! We "sophisticates" call it "quantitative easing" now! We've become so much more svelte in our deceptions, now! As long as it sounds arcane, it just MUST be good, now!
Overnight, when markets tanked again in Europe, stock futures tanked along with them. Here is the result:
But
not for long! It's Bubbles Bernanke to the rescue. Stocks were soon
pumped higher again beginning at 6 am EST, while nearly all Americans
were still asleep, and stocks are now back to flat for the day, just in
time for the NYSE to open 30 moments from now. Here is the most recent
stock futures chart a few minutes ago:
This
endless money pumping ultimately does NOT yield jobs or prosperity. It
brings inflation and Dollar devaluation, and it only empowers
politicians to engage in still more destructive spending, taxing, and
pandering to economic ignoramuses -- Obama's legions of leeching
lemmings!
Ben "Bubbles" Bernanke and the Fed's FOMC will meet this week and Wall St is expecting Bernanke to announce a doubling of the Fed's program of monetizing US debt.
Currently, the Fed is monetizing about $40 billion/month in mortgage debt, and has continued its program of monetizing an additional $45 billion/month of US government debt by swapping short-term US debt for long-term US debt under its continuing program (sorry, the name escapes me as I type this).
But this week, due to the on-going weakness in the economy (yes, the same one Michelle Antoinette termed a "huge recovery"), Wall St is now expecting the Fed to begin a NEW program of monetizing even MORE US government debt. It is widely expected that the Fed will monetizing an additional $40-$45 billion/month, to be announced this Wednesday!
This is why, despite worsening economic indicators since this last summer, the stock market has continued near five-year highs, and Wall St has continued its Pollyanna Party, dismissing the endless parade of bad news as just "temporary" ("Hurricane Sandy did it, Mommy") or merely anecdotal singular events.
The Fed has so pumped up the stock market bubble that news, data, and analysis are no longer even relevant in this "bubble" mirage economy. In a November 2010 op ed in the Wall St Journal, Bernanke boasted of his ability to endlessly pump up stocks, even referring to asset bubbles (stocks, housing, and remember the now-forgotten "sub-prime" mortgage bubble?) glowingly as "the wealth effect". Bernanke literally considers all his bubble blowing as a GOOD THING!
When Bernanke, in one of his few interviews with the news media, told Scott Pelley that 1) he wasn't printing money, and that 2) he wasn't monetizing the debt, he was boldly lying to the American people, counting on the ignorance of the vast majority of them.
While technically, he was correct in saying that the Fed doesn't literally "print" money any more, he intentionally misleads people, because the Fed DOES create money out of thin air. They do it in a computer now, not with a printing press. But this same Bernanke gave his now-famous "helicopter" speech by boasting of the Fed's "this thing called a printing press" (HIS own words). He then denied to Pelley what he had previously boasted about?
And in #2 above (Bernanke's claim that the Fed is NOT monetizing the national debt), he blatantly and LIED bold--faced to the American People. The Fed has monetized more than 90% of the issuance of long-term US government debt in the past 4 years, adding nearly $3 trillion of government-issued debt to the Fed's balance sheet, and plans to increase its balance sheet of US debt to more than $5 trillion in the next two years. If that's not "monetizing the debt", Mr. Bernanke, what IS? Ah, that's right! We "sophisticates" call it "quantitative easing" now! We've become so much more svelte in our deceptions, now! As long as it sounds arcane, it just MUST be good, now!
Overnight, when markets tanked again in Europe, stock futures tanked along with them. Here is the result:
But
not for long! It's Bubbles Bernanke to the rescue. Stocks were soon
pumped higher again beginning at 6 am EST, while nearly all Americans
were still asleep, and stocks are now back to flat for the day, just in
time for the NYSE to open 30 moments from now. Here is the most recent
stock futures chart a few minutes ago:
This
endless money pumping ultimately does NOT yield jobs or prosperity. It
brings inflation and Dollar devaluation, and it only empowers
politicians to engage in still more destructive spending, taxing, and
pandering to economic ignoramuses -- Obama's legions of leeching
lemmings!
