estb 1776


the constitution is the revolution

The Dollar is the Economy

Bernanke Gets it Backwards

“The rise in retail prices is caused by…the Federal Reserve creating excessive amounts of money and credit. High prices, therefore, are the RESULT of the ridiculous excesses of the Federal Reserve, not the cause.”

by The Mogambo Guru

I tried to watch Ben Bernanke’s question-and-answer appearance before the Senate Banking Committee, but there was Christopher Dodd, chairman of that committee, who is the guy I accuse of being directly responsible for the entire economic mess we are in, as the economic mess we are in is the same kind of economic mess that happens every damned time the banks are allowed to act irresponsibly, and this preening Congressional-doofus was in charge of questioning the head of the Federal Reserve to keep the banks from acting crazy and keeping greedy, corrupt, lying bankers in line. But he blew it, big time, and I shall never forgive Connecticut for electing this bozo.

Almost right off the bat, Bernanke implied that Milton Friedman was wrong, and that the whole Monetarist School of economics was wrong when they said that “inflation in prices is always and everywhere a monetary phenomenon” – which is exactly, exactly right. Instead, Ben “Butthead” Bernanke says that inflation is caused, not by irresponsible over-creation of money and credit, but by rising commodity prices, especially the rising price of oil! Hahaha! What an idiot!

And ol’ Butthead says he is on the lookout for signs that the rising costs that producers of goods and services must pay are not filtering through to retail prices, and if he ever sees any inflation, he will take “action”! Hahaha! I can’t believe I am hearing this! Hahaha!

This Bernanke dim bulb, who apparently knows nothing about economics at all, was the chairman of the economics department of Princeton (which doesn’t say much for Princeton University), and is apparently unaware that Milton Friedman was right; the rise in retail prices is caused by a prior rise in the money supply, which is caused by the Federal Reserve creating excessive amounts of money and credit. High prices, therefore, are the RESULT of the ridiculous excesses of the Federal Reserve, not the cause.

Link to Complete Article


Filed under: Money

One Response

  1. longryder says:

    Lets see if I “get it”…Congress allowed a Central Bank to be created in 1913- even though our Constitution said it was a no- no ( as did Tom Jefferson and Ben Franklin to name a couple)…They print and issue fiat currency that is backed by a bankers word and nothing else…We allow foregn Billionaires to dictate our economy…We excuse the fact that this Corporation called the Fed allowed the great depression in the 20’s..And are allowing this same outfit to call the shots while reaping billions of fiat dollars – (or is it our gold) for nameless familys that own this privately held Company….which accounts, incidentally, for a sizable reason for the so called National Debt that can never be repaid…And we still are partners with this obvious mismanaged and quite possibly criminal enterprise…? ..Did I get it right ? Than we get what we deserve…..

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