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Bernanke: U.S. Economy Is A Ponzi-Scheme

Articles & Blogs - US Commentary

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Having allowed a couple of days for the tidal wave of mainstream, post-“tapering” nonsense to subside; it’s now time to look at the facts, as once again The Boy Who Cried Exit Strategy got in front of microphones to say “just kidding.”

At the time that B.S. Bernanke originally began his musings now known as “tapering”; it had already been observed that the U.S. pseudo-recovery was “longer than average duration” – i.e. it was already past its expiry-date. After stalling for 4 ½ years, and failing to deliver on all his previous promises of an “exit strategy” – while the U.S. economy was relatively “strong”(?) and supposedly growing – no rational government (or central bank) would ever time the withdrawal of stimulus to coincide with the end of a growth-cycle.

Tapering” was always a hoax.

Simply talking about tapering caused interest rates (i.e. borrowing costs) on U.S. ten-year Treasuries to nearly double; and naturally/inevitably those higher borrowing costs filtered through the entire U.S. economy. Thus in simply talking about tapering for seven months; the Banksters created so much economic “drag” on the U.S. economy that if Bernanke had actually, finally delivered on (yet another) “exit strategy” promise, it could have only been interpreted as deliberate economic suicide.

Tapering” was always a hoax.

There is a delicious irony here. The “latest rounds of QE” – the current, $1 trillion per year of totally gratuitous U.S. money-printing – are not actually “new” money-printing at all. These infinite stacks of Bernanke-bills were being conjured into existence just as quickly before these “announcements”, it simply wasn’t being reported/declared.

It was counterfeit money, in every sense of the word. This was explained in a previous commentary. The original problem? No buyers (anywhere) for U.S. Treasuries – at “all-time record prices”. The solution? Counterfeit money.

Secretly print-up $trillions in counterfeit Bernanke-bills, and use that counterfeit money to “buy” U.S. Treasuries in auctions which (conveniently) had just been made totally opaque. Readers have seen or heard my description of the new-and-improved “Treasuries auction” previously.

A stack of Treasuries is placed on a table. The lights go out. (Sounds of paper-shuffling are heard.) The lights come back on. The stack of Treasuries is gone. “Auction” complete.

This cheap ‘magic trick’ was the Perfect Crime, and then Reality ruined everything. With the U.S. pseudo-recovery already beginning to obviously sag (in its old age); the call went out to the Fed for “more stimulus” – given the fact that the U.S. Treasury is totally empty (save for the IOU’s).

So B.S. Bernanke and Co. simply began reporting the “new money” they had already been counterfeiting previously, and presto! One $trillion per year in new, so-called “stimulus.” Now (suddenly) there was an actual “reason” for U.S. Treasuries to be improbably perched at all-time record prices – despite the fact the U.S. economy is obviously bankrupt: the Federal Reserve was openly monetizing all debt.

The Truth shall set you free”? Not if you’re a central banker at the Federal Reserve. Then it’s a nasty ball-and-chain which (you discover to your horror) you can never remove.

 

Why has it been absolutely necessary to (fraudulently) prop-up U.S. Treasuries prices to (by far) their highest price-levels in history? Because the U.S. government (and the debt-saturated U.S. economy as a whole) cannot pay legitimate rates of interest on all its debts without immediately imploding into bankruptcy.

The last six months of talking-about-tapering is absolute, empirical proof of this fact. What ultimately forced the Boy Who Cried Exit Strategy to back-off on yet another exit-strategy promise – even if he had wanted to proceed -- was (as previously noted) the pain of higher interest rates. Bernanke himself explicitly acknowledged this:

Bernanke said he was concerned that market interest rates, driven higher by his own suggestion he would scale back so-called quantitative easing, would curb growth. [emphasis mine]

There you have it, direct from the Horse’s Mouth. There is no “tapering” today, and there has been no “tapering” throughout the last 4 ½ years of pseudo-growth (and empty promises) because the (bankrupt) U.S. economy cannot afford to pay “market interest rates” (i.e. legitimate interest rates).

Federal Reserve Chairman B.S. Bernanke has openly, implicitly declared that the U.S. economy is a Ponzi-scheme. It is so absurdly over-leveraged with debts that it can no longer afford to pay “market rates” of interest on its debts; but instead must artificially (i.e. fraudulently) manipulate U.S. interest rates lower and monetize its debts – or risk immediately imploding this Ponzi-scheme economy.

There was no “tapering” announced yesterday because (as with any Ponzi-scheme) there can never be any easing-up of the ever-escalating capital necessary to sustain the Ponzi-scheme…unless/until the Banksters choose to deliberately detonate these debt-bubbles. This has been made unequivocally clear by the recent reactions of markets (higher interest rates), the reaction of the U.S. economy to talk of tapering (collapse), and Bernanke’s latest capitulation.

Clearly (in a perfect world) the Wall Street Vampires would have preferred that Bernanke follow-through on his “tapering”,  and then ride (i.e. profit from) the “crash” to follow. There is very little “money to be made” with the Wall Street fraud-markets already propped-up at record highs, via the $1 trillion/year in gratuitous money-printing, all stuffed into the pockets of the Vampires for free.

But as the One Bank and its Minions comprehend; this would be no ordinary crash. There would have been no “profit” riding markets lower if it vaporized its entire Empire of Fraud in the process.

Still, the Banksters won’t view the last six months of Bernanke pretending he was going to reduce his money-printing as a total loss, even if it has exposed a lot of (very) ugly Truths about the U.S. economy in general, and the Federal Reserve’s money-printing Ponzi-scheme in particular. They need only point to their ‘handiwork’ in precious metals markets.

What have we seen over the past seven months? Seven months of lying about “tapering” resulted in precious metals prices sinking (i.e. being manipulated) lower and lower – 20% for gold; 30% for silver – through doing nothing more than repeating that Lie, day after day after day.

What have we seen over the past couple of days, after “tapering” was revealed to be yet another hoax from the Boy Who Cried Exit Strategy? We saw the price of gold rise for four hours (and roughly 5%) – and then stop. We saw the price of silver rise for four hours (and roughly 8%) and then stop.

The moral of the story? In our Crime Syndicate markets (with their Pied Piper trading algorithms); lies can be used to move markets as much as desired – even through doing nothing more than repeating the same lie over and over. The Truth, on the other hand, gets no “traction” at all.

But it’s no more possible for the Banksters to manufacture gold or silver bars out of their lies than it is for the U.S.’s bankrupt economy to pay interest on its debts. The former is now just a shell-game; with the Con-men rapidly running out of shells. The latter is a teetering Ponzi-scheme, now so close to collapse that merely talking about the U.S. paying (real) interest on its debts threatens to implode it.

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Jeff Nielson
...
written by Jeff Nielson, September 20, 2013
Jeff: cannot disagree with your post, but in my opinion the Ponzi has been ongoing for years; in fact ever since the FED was founded and the USG abdicated sound monetary policy and essentially turned over the nation's economy to the the biggest criminal enterprise ever formed.


Apberusdisvet, perhaps the focus of my commentary wasn't clear enough?

I wasn't merely seeking to point out that the U.S. economy is a Ponzi-scheme. I've made that observation previously, and there has already been plenty of evidence.

What struck me here was that it was impossible for Bernanke to explain HOW/WHY he had backed-down on yet another Exit Strategy promise without admitting that the U.S. economy is now a Ponzi-scheme. smilies/wink.gif
apberusdisvet
...
written by apberusdisvet, September 19, 2013
Jeff: cannot disagree with your post, but in my opinion the Ponzi has been ongoing for years; in fact ever since the FED was founded and the USG abdicated sound monetary policy and essentially turned over the nation's economy to the the biggest criminal enterprise ever formed.

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