Bernanke To Oprah: “I’ve Been Doping for Years”
Beginning with the “Yes or No” questions only, everyone’s favorite talk-show host takes on The Bernank in this earth-shattering interview. It seems The Federal Reserve has been forced to ‘fess up in this entertaining interview as Bernanke sits sobbing across from Ms. Winfrey – and comes clean to years of monetary policy artificial stimulation and performance-enhancing economic-doping.
Just like Armstrong, Bernanke admits that it is widespread and that this generation of central bankers “all do it” as he notes that “some retard from the FT or NYT will write excruciatingly thoughtful op-eds about how this is actually a good thing.” From the raging parties at Club-Fed to “good f##king times” with Alan Greenspan to “telling people to chillax and enjoy the good times” as the housing bubble popped, Bernanke leaves us with these chilling words: “Buy food, guns, and gold, this $hit is about to get real!”
card802 says:
Merk Investments ran a bit on this today.
“We allege the Fed is engaging in doping; the cheap money is like a fix for a drug addict. So far, however, the Fed’s own anti-doping commission, a research staff with the best credentials and intentions, has not found any foul play, as economic indicators show a gradual recovery with little inflation. But we believe the Fed has to thank the anemic recovery for covering up the greatest money printing scheme in US history. Except that the Fed has not really been covering much up, documenting in plain sight how much money it has been printing. And, of course, the Fed has not really printed money, but done the virtual equivalent, creating money out of thin air, with the stroke of a keyboard, buying Treasuries and Mortgage-Backed Securities (MBS). Conveniently, the more money the Fed prints, the more fixed income securities it buys, the greater the interest it earns, the higher the annual profit it transfers to Treasury.
The scheme looks so irresistible, but hides some dark truths. Amongst them, those “profits” might evaporate when it comes time to raise rates; at that time, the Fed has indicated it will increase interest on deposits at the Fed. Yet, even as recently retired Treasury Secretary Geithner studiously increased the average maturity of government debt ever since taking office, Bernanke’s scheme has increased interest risk for the government, as the Fed’s subsidy of interest payments (the Fed’s annual profit passed to Treasury of currently almost $90 billion) is at risk. Never mind the interest risk to the Fed itself, as the Fed does not mark its securities to market.”
Illinois credit rating is cut, again, now the worst in the nation:
http://news.investors.com/ibd-editorials/012813-642237-credit-downgrade-illinois-standard-poors-worst.htm
When this all ends it will be spectacular.
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29th January 2013 at 10:04 am