Caught In A Lie:

[Mr. T]

Caught In A Lie: Bernanke Promised Congress The Federal Reserve Would Not Monetize The Debt But Now That Is Exactly What Is Happening

 

On June 3rd, 2009 Federal Reserve Chairman Ben Bernanke promised the U.S. Congress that the Federal Reserve would not monetize the debt of the U.S. government. On November 3rd, 2010 the Federal Reserve announced a massive quantitative easing plan which will involve the purchase of 600 billion dollars of U.S. Treasury securities by the middle of 2011. Creating 600 billion dollars out of thin air and using them to buy up U.S. government securities is monetizing the debt. So Federal Reserve Chairman Ben Bernanke has been caught in a lie. Will we ever be able to trust a single word that he says ever again? Monetizing the debt is a desperate act. It is a signal that we are rapidly reaching the end of the game. Slamming interest rates all the way to the floor did not revive the U.S. economy. Hundreds of billions of dollars in extra government spending did not do the trick either. The U.S. economy is still dying and the U.S. government is now beginning to find it very difficult to locate buyers for all the debt that it is constantly issuing.

 

So the Fed apparently hopes that this new round of quantitative easing will be a way to finance the exploding U.S. government debt and spark an "economic recovery" at the same time.

 

But didn't Bernanke promise that the Fed was not going to do this?

 

Didn't he pledge to Congress that the Federal Reserve would not monetize the debt?

 

Yes, he did. The following is video footage of Bernanke from June 3rd, 2009 promising that the Federal Reserve would not monetize the debt....

 

 

 

 

So much for keeping his promises.

 

But what else can Bernanke do?

 

The truth is that we are reaching the end of the economic rope and the Federal Reserve has already played all of the other tricks that they have in their bag.

 

Buying up massive amounts of U.S. government debt and showering the U.S. economy with money is a desperate attempt to keep the shell game going for a few more rounds.

 

Once upon a time, the U.S. dollar was the strongest currency on the planet. The rest of the world loved to use it as a reserve currency and they were more than glad to buy up U.S. Treasuries.

 

But now the mood has changed dramatically. The rest of the world does not intend to keep lending us well over a trillion dollars each and every year. The market for dollar-denominated debt is not what it once was.

 

In fact, Peter Schiff, the CEO of Euro Pacific Capital, believes that the primary reason for this new round of quantitative easing is that the U.S. government is having an increasingly difficult time financing its debts....

At the end of the day, all this deflation talk is a red herring. The true purpose of QE 2 is to disguise the decreasing ability of the Treasury to finance its debts. As global demand for dollar-denominated debt falls, the Fed is looking for an excuse to pick up the slack. By announcing QE 2, it can monetize government debt without the markets perceiving a funding problem

 

The rest of the article HERE

 

 

When China gets PO and decides to drop our dollar everyone will be screwed!

 

Currency Wars...HERE

[Pumpkin Eater]

inflation

[Paxton]

I wish our money was still worth something.

 

-Pax

[calfoxwc]

Well, George Soros says, that America is the only barrier to a just and peaceful world.

 

He's plummeted entire countries' economies. And he wants to do that to us.

 

Research it on your own. Or, watch Glenn Beck at 5 pm on Fox News today.

 

Soros is "spooky dude".

 

BTW, a Soros rep had a meeting with a producer of Beck's show, and complained

 

that Beck was bringing Soros' name up.

 

Soros. Tide foundation. Acorn. Open Society, ... the list of subversive groups goes on and on.

 

Hillary Clinton has lavished praise on Soros.

 

BTW, Soros has been to the White House to see Obamao... four times already.

 

We are in big, big trouble, and our country and freedoms and economic health... are in great danger.