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The Boy Who Cried ‘Exit Strategy’

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Bloomberg News and Federal Reserve Chairman Benjamin S. Bernanke have been at it again. Their own, little version of the legendary Abbott & Costello “Who’s On First…?” skit, which they call “exit strategy.”

In their latest installment of the skit from March 11th, we have Bloomberg in its role of straight-man “Abbott” trying to make four years of empty promises of a monetary “exit strategy” by “Costello” (played by Bernanke) sound admirable.

The best Bloomberg could do is to proclaim that Bernanke is “provoking mystery” with year after year of his double-talk. This is followed by paragraph-after-paragraph of the same (mandatory) “maybe he should/maybe he shouldn’t” drivel we have been subjected to since 2009. Time to update your Script!

Most if not all readers are familiar with the fable “The Boy Who Cried Wolf”. For amusement, a shepherd boy began periodically shouting out “wolf”, in order to rouse all the other villagers and force them to run all the way out to the sheep’s pasture before determining for themselves that there was no wolf.

However, the villagers soon caught onto this game; and less and less of them began heeding the boy’s (false) alarms. Finally and ironically, on the day a wolf actually appears in the pasture; no one at all responds to the boy’s wolf-call.

While the boy of the fable engaged in his serial-lying purely for the purposes of amusement, it’s certainly easy to ascribe other, probable motives for such lying. An obvious strategy would be to engage in such lies as a stalling tactic.

For example, as things started getting ugly on the Little Big Horn for General Custer and his men; one of his troops gets the idea to start shouting “the cavalry is coming.” At first; Crazy Horse and his warriors hesitate, or even pull back from their attack. But soon they start disregarding the shouts, and eventually ignore them altogether.

The previous hypothetical example is illustrative in another respect. Engaging in serial-lying as a stalling tactic changes nothing. It merely delays the inevitable.

Our economies have what is known as a “Business Cycle.” While “full business cycles” are generally deemed to stretch-out over roughly a decade, there are clear-and-obvious sub-cycles within these longer intervals. Specifically, throughout our modern economic history; the average length of any particular growth cycle is a little more than three years, with 40 months being the number most typically quoted.

Yet, with the current (supposed) “Recovery” in the U.S. now four years in length; we still see B. S. Bernanke engaging in the same, absurd song-and-dance. Going all the way back to the early months of this mythical recovery; B.S. Bernanke has been promising an “exit strategy” every few months – like a lethargic cuckoo-clock.

However, Bernanke’s game is actually a two-step. First he teases the slack-jawed yokels with another promise of an “exit strategy” (from the most extreme/insane monetary stimulus ever attempted by any government). Then, in the proud tradition of P.T. Barnum; he “provokes mystery” by telling the yokels he won’t actually deliver on this mythical exit strategy…yet.

Why not?

Because (supposedly) it’s “too soon.” The Recovery “needs more time” to ‘gather strength’ and/or ‘build momentum’. Is this plausible?

What would we think if we saw a boy with a new bicycle, but four years later the boy is still riding around with the training wheels on his bike? A reasonable person would assume that the boy will never be able to ride the bike without training wheels – and should he remove them, he would instantly fall flat on his face.

 

What should a reasonable person infer when Bernanke’s incessantly-hyped Recovery cannot withstand having its own “training wheels” removed after four years? Indeed, Bernanke has already promised to keep the training wheels on the U.S. economy until (at least) 2015. Can Bernanke’s fear/intransigence (stalling?) be explained in any other way? Perhaps.

One could argue this sounds remarkably like the B.S. Bernanke of 2005, writing about the U.S.’s “Goldilocks economy”, where markets and house prices could/should/would just keep going up and up and up forever. Of course that was right before Bernanke took over the Fed, and things didn’t work out quite as he predicted.

In fact, a little over a year later Bernanke was warning Americans about a “soft landing” in the U.S. housing market. But (as we know) that wasn’t quite how things turned out either. D’oh!

This brings us to the last four years of Bernanke promising the world his “exit strategy”, except he’s never quite been able to deliver on that promise – because he didn’t want to ruin the U.S.’s “Goldilocks economy”. Which brings us back to the beginning of this circle of lies.

Let me summarize this previous account of B.S. Bernanke’s career as Federal Reserve Chairman, since any/all mainstream accounts of Bernanke’s work suffer somewhat from the defect of not having the slightest connection to reality.

Chronology:

2005: B.S. Bernanke writes about the U.S.’s “Goldilocks economy.”

2007: B.S. Bernanke promises a “soft landing” after his Goldilocks economy ran out of steam.

2008: B.S. Bernanke engages in the largest/most radical money-printing in history (along with permanent 0% interest rates) after his “soft landing” turned into “the worst crash since the Great Depression.”

2009: Bernanke begins promising his “exit strategy.”

2009-13: Bernanke tells us he can’t deliver on his “exit strategy” yet. (Because he doesn’t want to mess-up the U.S.’s new Goldilocks economy?)

Of course even this account of B.S. Bernanke’s less-than-illustrious career suffers from being framed in the economic mythology fed to us by the Corporate Media.

What Bernanke called a “Goldilocks economy” was in fact nothing but the fraud-saturated, U.S. housing-bubble, and the $trillions in malinvestment, excessive spending, and suicidal borrowing which accompanied it.

The resulting “crash” in 2008, which was deliberately triggered and amplified with the assassination of Lehman Brothers, has led to the U.S. Greater Depression. The entirely mythical Recovery which has supposedly followed has been nothing more than the continuation of this horrific economic trough.

Proof of this reality comes in many forms. In previous commentaries; readers have seen charts conclusively showing: no “new jobs”; no “recovery” in the housing market; and how energy consumption has collapsed in the economy of the world’s great Energy Glutton? How do you “grow” an economy with less-than-zero energy?

However, the most powerful/obvious proof comes from the lack of reaction to this extreme/insane stimulus from the U.S. economy. Why has no government (even Japan) engaged in a collection of monetary policies this wildly “stimulative”? Because in any remotely healthy economy it would cause such an economy to immediately “overheat”; and then quickly explode into sector after sector of asset bubbles.

Yet after four years of this pseudo-growth, we see Bernanke just as terrified over the thought of removing the training wheels from the U.S. economy today as he was in the early months of 2009. In fact, Bernanke’s massive, monetary prop for the U.S. economy is more than mere “training wheels.” It has been shown to be nothing less than life-support.

Bloomberg was actually correct about one thing in its latest Bernanke-babble. He is “provoking mystery”. But the mystery is why do any of the yokels still listen to anything that comes out of the mouth of “the Boy” from the Federal Reserve?

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Comments (8)Add Comment
Jeff Nielson
...
written by Jeff Nielson, March 18, 2013
Jeff: it's always been "extend and pretend" for the economic pyscho policy makers. Most assume that they are hopefully buying time for the economy to recover. Unfortunately, this is far too simplistic, and distracts from the real agenda; total destruction of economies so that the sheeple will gladly accept totalitarian rule in return for basic (poverty) subsistence.



Damn, Apberusdisvet! Sometimes I wish you could make your comments BEFORE I write my commentary (lol). I would have liked to substitute "extend and pretend" for "stalling" AT LEAST once... smilies/cheesy.gif
apberusdisvet
...
written by apberusdisvet, March 18, 2013
Jeff: it's always been "extend and pretend" for the economic pyscho policy makers. Most assume that they are hopefully buying time for the economy to recover. Unfortunately, this is far too simplistic, and distracts from the real agenda; total destruction of economies so that the sheeple will gladly accept totalitarian rule in return for basic (poverty) subsistence.
Jeff Nielson
...
written by Jeff Nielson, March 18, 2013
Top notch once again Jeff,

How people can stomach this lying psychopath is absolutely beyond me. I guess its the emperor's new clothes again. Everyone is afraid to expose this liar out fear their retirement will go poof. Well it's going to go poof anyways if it isn't in physical gold and silver, and maybe a few bitcoins ;-)

THE EMPEROR HAS NO CLOTHES! There, I said it


Thanks BrotherJohn!

You got your comment up so fast on this one, I had to double-check to make sure it wasn't part of my original article (lol!).
Jeff Nielson
...
written by Jeff Nielson, March 18, 2013
Content aside, I just love the title Jeff.


Thanks Brian!

If I didn't allow myself to have some FUN writing about these Criminals I would probably drive myself crazy... smilies/wink.gif
Jeff Nielson
...
written by Jeff Nielson, March 18, 2013
Not the right place to post this, Jeff, but breaking news must interrupt this thread.
Cyprus "bailout" includes freezing bank accounts & imposing levies on deposits:

http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br

Not only is the Euro a complete failure, (except for the banksters), but now they are stealing in broad daylight again, according to plan.

For anyone who believes their paper fiat bank deposits are safe, think again.

Can't happen here?
Sorry folks, it's most likely to happen here.


Yes Bobbbny, not quite the place to get into that here. But we already have a thread going on our Forum tackling this topic:

http://www.bullionbullscanada.com/bulletin-boards/21-geopolitcal-news-talk/22774-open-seizure-of-depositor-funds-begins#22785

Yes, these governments are now openly stealing, but the STEALING is actually nothing more than ad hoc WEALTH TAXATION -- the ultimate horror of the Oligarchs themselves...
Brian Boutilier
...
written by Brian Boutilier, March 18, 2013
Content aside, I just love the title Jeff.
bobbbny
...
written by bobbbny, March 17, 2013
Not the right place to post this, Jeff, but breaking news must interrupt this thread.
Cyprus "bailout" includes freezing bank accounts & imposing levies on deposits:

http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br

Not only is the Euro a complete failure, (except for the banksters), but now they are stealing in broad daylight again, according to plan.

For anyone who believes their paper fiat bank deposits are safe, think again.

Can't happen here?
Sorry folks, it's most likely to happen here.
BrotherJohnF
...
written by BrotherJohnF, March 17, 2013
Top notch once again Jeff,

How people can stomach this lying psychopath is absolutely beyond me. I guess its the emperor's new clothes again. Everyone is afraid to expose this liar out fear their retirement will go poof. Well it's going to go poof anyways if it isn't in physical gold and silver, and maybe a few bitcoins ;-)

THE EMPEROR HAS NO CLOTHES! There, I said it.

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