Bernanke is a big FAT STUPID LIAR!!

I will show you how he lies...

First the video:



Bernake at 5:15 says, "The intention is to use market based mechanisms...to try to discover what the true price is..."

TRUTH:
Market based mechanisms are presently occurring trying to price these MBS marked to the market, but Bernanke wants to purchase these securities pre-discounted rate that the REAL market would thus otherwise price. Here the FED is not letting the market dictate the price, the FED is thus intervening and saying that, "we will buy these securities MBS at your book value, we will sell it at what the market says, and thus be willing to take the difference." This is not free-markets working this is the taxpayers buying junk at full price and then selling the same junk back to the bankers at the discounted price. WE EAT THE DIFFERENCE HERE!!!

Bernanke says at 5:33: "In The case of the Depression, essentially the FED took no action"

TRUTH: (I've coincidental posted this earlier, but worth re-posting)

The FED took two actions which caused the market to crash and then caused the great depression, back in the 30s, and are also culpable for our current financial instability.

1) They lowered interest rates in the 1920s, creating the roaring twenties and expanded the money supply.

2) They then raised the interest rates in 1928 to try to stop the bubble they created, thus in 1929, the stock market crashed. But if you don't believe me read it from their own website. Of course, it says they raise interest rates in 1928, but they won't say anything about the easy credit they created throughout the 1920s, for that information see the data I provided below.

The first episode analyzed by Friedman and Schwartz was the deliberate tightening of monetary policy that began in the spring of 1928 and continued until the stock market crash of October 1929.

CONSUMER PRICE INDEX AND M2 MONEY SUPPLY: 1800-2003
(M2 in billions of dollars)


Year CPI-U M2
---- ----- ------ ------ ------- ------ ------
1917 38.4 24.37 16.88 7.86
1918 45.1 26.73 9.68 8.96
1919 51.8 31.01 16.01 9.48
1920 60.0 34.80 12.22 10.18
1921 53.6 32.85 -5.60 9.04
1922 50.2 33.72 2.65 8.59
1923 51.1 36.60 8.54 9.04
1924 51.2 38.58 5.41 9.17
1925 52.5 42.05 8.99 9.33
1926 53.0 43.68 3.88 7.87
1927 52.0 44.73 2.40 6.42
1928 51.3 46.42 3.78 5.83
1929 51.3 46.60 0.39 4.27
1930 50.0 45.73 -1.87 2.86
1931 45.6 42.69 -6.65 2.75
1932 40.9 36.05 -15.55 0.93
1933 38.8 32.22 -10.62 -0.98
1934 40.1 34.36 6.64 -0.86
1935 41.1 39.07 13.71 -0.39
1936 41.5 43.48 11.29 0.35
1937 43.0 45.68 5.06 0.62
1938 42.2 45.51 -0.37 0.20
1939 41.6 49.27 8.26 0.99
1940 42.0 55.20 12.04 2.38

Source:CPI/M2 Money Supply

I'm going to make this very simple for you. I removed unnecessary figures which may confuse you. The first column on the left is the years, the second column represents CPI, the third M2, which is the supply of money, (M3 was not really prevalent at the time) by the way what matters for the economy is total money supply and not the monetary base. As you can see from the chart above starting from 1917 on through about 1929 M2 money supply was steadily rising to as I said 1929 to 46.60. This increase in the money supply provided excess money which drove production, and began to cause the malinvestment in the economy, just like we have today, which led to the speculative bubble in the Stock Market. And like today, back then there was growing inflation, see the first column see the CPI rising in 1917 38.4, till 1929 51.3. After 1929 we had slight deflation or prices falling, but pay close attention the prices generally hovered and really didn't come down too much. Why? Because as I've already pointed out the Federal government imposed certain restrictions which didn't allowed for prices to decrease as they should have.

How the hell are people supposed to eat when prices are curiously staying the same and in the case of some years actually going up, when their is A DEPRESSION GOING ON?? I'll tell you why, BECAUSE AGAIN government is interfering and making things worse. Instead of letting prices come down for food, clothing, and shelter as they should have during a depression for those that needed it most, government propped up certain businesses (THINK AGI, OR FINANCIAL BUSINESS OF TODAY) with tariffs and other forms of trade restrictions.

I don't know if you are astute enough to have read Milton Friedman's, A Monetary History of the United States, 1867-1960, but in this book he has outlined the mistakes that the FED made that:
a) Caused the Crash
b) Turned a recession into a Depression.



Also, the reason why a 1/3 of the banks failed was because there was no FDIC at the time. This has nothing to do with the FED. If banks fail because of this credit crisis mess caused because no one wants to buy MBS, so what the FDI has promised to protect your savings.




[edit on 25-9-2008 by Gateway]

Bernake says at 6:06 , "There's no need for the FED to monetize this LOAN"

TRUTH:
Where does the 700billion come from? Does it fall from the SKY? If this money is not coming from taxpayers, and foreign Central Banks don't want to lend us this money where else is this money going to come from, BUT THE FED. They will print-it-up.

Bernake says, "As to the authority of course the constitution gives the congress to coin money and regulate the value there of"

TRUTH:

Section 8: Powers of Congress

"To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;"

The United States passed a number of legal tender laws prior to 1862, beginning with the 1792 Act establishing the United States Mint; but those laws applied to the coinage of the Mint. In addition to establishing the Mint, the 1792 law specified the weights of the respective coins in gold and silver at roughly market value and provided that all of the coins issued by the Mint "shall be a lawful tender in all payments whatsoever, those of full weight according to the respective values herein before declared, and those of less than full weight at values proportional to their respective weights." Maintaining the integrity of the intrinsic value of the United States legal tender coinage was a serious and important matter. Debasement of the coinage was declared to be a felony punishable by death!

So here we have this liar, who prints up money diluting the purchasing power of your money, and he comes to congress on behalf of WALLSTREET with hat in hand asking that we BAIL HIM AND HIS academic derivative writing BUDDIES out?

SAY NO!! Don't trust this man, he wants to dilute the PURCHASING POWER OF YOUR MONEY!!

I just wish ron paul didn't sound like a whiny old man. He needs to put some balls into what he is saying and spit it out.

Bernanke seemed to speak with some kind of authority, despite his inaccuracies, and a person who didn't know their history would not have been able to stumble upon the truth.

lets put them all to death, because I can already imagine how many people's lives are going to be straight up ruined. People who had good credit and paid their bills on time, and people who saved money their whole lives just to see it vanish into thin air like some sick and sadistic magic trick.

reply to post by iiinvision


Finally someone said something!
I thought it was just me but thank God..
Yeah for sure he needs to use his man voice if he has one, but at least his points are valid.

These people should be given a three strikes rule, like they have implemented at our jobs. We can only screw up so many times before we're canned. These people are riding out years due to elected officials appointing them. There needs to be an instant, citizen driven checks and balances system for people like these. They get nice and cozy and cause so mush strife for the American people, and they face no real repercussions because nothing is transparent. There is no honesty in the modern day political machine.



[edit on 25-9-2008 by DeadFlagBlues]

Originally posted by Gateway

TRUTH:

Section 8: Powers of Congress

"To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;"

This is somewhat wrong.. Executive order 11110 makes the federal reserve ILLEGAL.

So even if congress gives them the go ahead still makes it illegal cause technically.. The federal reserve is about as illegal as having 5 tonnes of coke on you plane...

Thank you for this post. Well done.

I understand you motivation in titling this thread as you have, but I would suggest it might get wider attention if it were less inflammatory (or maybe more ).

Great analysis, I always find very impressing when members used the Constitution and present laws to add more insight into their information.

You understand that in order to get the type of guidelines and stipulations of the present bill many laws will be added and constitutional rights will be side stepped.

Just heard they're making a movie on the financial debacle:



No word yet on who's playing the American economy's corpse.

ahahaha weekend at Bernankes
Whoever thought of that deserves a couple of million of the bailout money for humor alone hhahaha

Originally posted by Evasius
Just heard they're making a movie on the financial debacle:



No word yet on who's playing the American economy's corpse. [/quote

That's top shelf stuff!!

Denninger is all over these two in this morning's blog entry....read the second entry halfway down the page...

]Read This

Great thread.

One thing though, Bernanke and the Illuminati crew ARE liars, cheats, and thieves; are greedy, immoral, unethical, and souless - but they're NOT stupid. These SOB's know exactly what they're doing, and the Wall Street pundits know it as you can see it their faces when they spew their b.s. babble (ala Cramer, Kudlow, etc.).

With so much garbage being spewed out via the MSM, you don't know what to believe sometimes; energy prices are decreasing yet food prices are increasing; we're experiencing some deflation now but some warn that when the banks start to unload the hoarded trillions of $ "loaned" to them by the FED then we'll start seeing hyperinflation.

I'm sensing some at the top are getting a cheap thrill out of the whole mess...

Originally posted by Gateway
TRUTH: (I've coincidental posted this earlier, but worth re-posting)

The FED took two actions which caused the market to crash and then caused the great depression, back in the 30s, and are also culpable for our current financial instability.

1) They lowered interest rates in the 1920s, creating the roaring twenties and expanded the money supply.

2) They then raised the interest rates in 1928 to try to stop the bubble they created, thus in 1929, the stock market crashed. But if you don't believe me read it from their own website. Of course, it says they raise interest rates in 1928, but they won't say anything about the easy credit they created throughout the 1920s, for that information see the data I provided below.

If the Crash of 1929 was a sole consequence of high interest rate, as your TRUTH says, then how come the market didn't crash in 1981 when the interest rate was kept for one year in quite insane level between 18% - 20%, with a sudden increment of up to 8%, as opposed to the single-digit ending rates of pre-war lending.

The answer is that your TRUTH is a LIE. The Crash of 1929 was caused by the NYSE traders' misinterpretation of the financial and economic situation.

Just stop capitalizing your wild opinions and insulting people when you are not sure about what they are talking about.