printOr is Mr. Bernanke reading Meltdown? “The Federal Reserve Chairman’s views on asset bubbles,” writes The WSJ, are slowly changing.”
“Earlier this decade, when Mr. Bernanke was a Fed governor, he and other central bank officials said financial bubbles weren’t something the Fed could identify or pre-empt effectively. Its focus was on keeping inflation and unemployment low. [And how well that has been achieved.] Its bubble strategy was to mop up after a bubble burst with lower interest rates to prevent damage to the broader economy.”
In a speech on Sunday at the American Economic Association’s annual meeting, BB repeated the shibboleth about the need for “better regulation” as the first line of defense against future crises. But he also conceded to the need “to ‘remain open’ to using the blunt tool of higher interest rates to avert or pop future asset bubbles … particularly if other approaches aren’t working.”
Why is raising interest rates considered a “blunt tool,” keeping them artificially low is not?
I have been economically ignorant for years. I don’t understand how an organization can “manufacture” money like one manufactures lawnmowers. I’m ignorant know how that manufactured money gets loaned to banks (at the discount rate) and then re-borrowed from the banks by the same government counterfeiters now “servicing” debt with interest paid to the banks who are merely passing the counterfeit dollars back to the counterfeiter at a profit. Subsequently, we pumped trillions to the banks which didn’t “stimulate the economy” but was merely used by the billionaire bonus banksters to eradicate paper debt. I cannot understand why anyone should make unsecured loans or why the government should “control” interest rates. I don’t know why the government loans “money” to banks who are, in turn, required to loan the “money” out to farmers, students, etc. at a profit instead of the government directly loaning it out. E.G., the modern economics of the Pauls (Samuelson and Krugman) makes NO SENSE to me. Perhaps after a successful lobotomy, it will one day make sense to me. If there is a difference between the Plutocratic Republican version of this modern con-man counterfeit economics from the Do-Gooder Democratic version, it also escapes me.
Give me control of a nation’s money and I care not who makes her laws.
Mayer Amschel Rothschild