Paulson. In case you forgot who Ben Bernanke is, he is the chairman of the Federal Reserve, who became chairman in EARLLY 2006--just in time to be one of the main people responsible for the current recession we are in (laong with, current Treasury Secretary Geitner, former New York Fed chief, and along with all of those primarily Democratic politicians who orchestrated the same kind of Federal invovlement in housing "access" that they now want to bring to us in health care). President Obama only comes into this entry because I wanted to bring a racially balanced, harmonious moment to this blog. Oh, and the Fed, under Bernanke, is PRINTING MONEY, and commuting fraud, on behalf of pushing massive amounts of money into the economy. See the previous entry explaining how the economy is doing surprisingly BADLY, when you realize just how much money the Federal Government is pumpig into the economy, and the Fed is doing a substaintial part of teh pumping. (By the way, there was some MILDLY "positive" economic "news" today on consumer prices and industrial productioin, and BOTH very min9or itmes of "news" were cited as FURHTER evindence or how the economy is turning, when the afimarively BAD news of yesterday--on more significant items--was dismisseed.)
What is Beranke doing? What do I mean by "fraud"? Well in one of those debut auctioins a week or so ago, the Fed announced that it would NOT have to do what it has been doing. What it has been doing is PRININTING MONEY by purchasing government debt if there is not "enough" private demand. Yes, we have been borrowing FROM OURSELVES, in an effort to disguise that interest rates should be going UP. Becuase of all of this Federal spending, we have to BRROWN MONEY (not new, but the amount is new). If there are not enough buyers of the government debt instruments used to borrow that money, interest rates RISE (which will KILL any "recovery" that might be starting, as will inflation, which Wall Street is now "predicting"). Well, the Fed, with regard to this recent auction, claimed that there was engouh private demand to lend the government money that the Fed did not have to adct--did not have to print money (with ultimate bad consequences for the dollar and inflationary expectations). This was a FRUD (statment by the FEd was a fraud).
What the Fed then did was buy back some 47% of the debt a mere 10 days after the auction--buying the debt back from the "private" institutioins that had supposedly "purchased" the debt. Did this "fool" anyone? Don't be silly. Read the headline. Bernanke is a DUMB WHITE GUY. But this is the kind of deception the Fed, and the whole government, is desperately trying to conceal the unfolding disaster. Yes, these deceptioins inlcude decpetions on the cost of a massive new Federal health care program, where even the Congressional Budget Office says the plan will INCREASE health care costs.
Yes, you may find it hard to believe. But the Fed somehow thought that prinint money ten days after concelaing what was really going on at the original auction was BETTER than being up front about what was really happening. Does anyone actually believe that there was not some kind of arrangement to "protect" those "private" investors who helped out the Fed by taking on this government debt? Nope. No one believes there was not soe kind of arrangement--explicit or implicit.
We are MASSIVELY injecting money into the economy, and the Fed is one of the prime entities doing the injecting, and we are getting little from all of that money . Yes, the "stimulus" has not even done much "stimulaton", but there is all of that "bailout" money, and money being PRINTED by the Fed.
As I stated, the amazing thing is not that all of this money has had some eeffect. After all, last summmer a more efficient "stimulus" plan had temporarly effect. What is amazing is how BADLY the economy is doing, despite the amount o fmoney being pumped into the economy. This is really TERRIBLE news, because pumping this much money into the conomy from the Federal Governmnet has COSTS, and those costs will derail any recovery that may finally start before it gets very far. And we-at least the Obama Administration and Democrats in Congress--are trying to compuund the problem with things like this health care "reform" bill.