“Unusually Uncertain”
publication date: Jul 26, 2010
|
author/source: Brad Hamill
The financial community teetered on the edge of their seats today as they
awaited the pronouncement of their financial savior – Ben Bernanke. They were
met with the words: Unusually Uncertain.
Rumors had been swirling that the Federal Reserve was about to cut the amount of interest on excess reserves they were paying to banks by 0.25%. People felt certain that this would cause banks to begin lending out credit again and contribute to a re-inflation of the economy. They were sadly mistaken. They were wrong because they don’t even understand the basic tenets of the economic game that is being played out before our very eyes.
Ben Bernanke is the Chairman of the Federal Reserve (the “Fed”). His role is to be the mouthpiece for an organization that is entirely controlled by the international banks, and which simply serves as a pipeline between the big banks and the US Federal government.
The international banks began a systematic wind-down of credit in September, 2008. This caused a gigantic contraction in the size of our nation’s money supply – which also caused a very large downturn in the stock market, since stocks perform their best during inflationary periods.
The US government has spent the intervening time trying to artificially pump the money supply back up. They’re very constrained in doing so, since they can’t print money. Only the Fed can do that. Instead, the Federal government has been creating as much new debt as they can muster by selling US Treasury securities at a furious pace. They also passed new Health Care legislation to create a mountainous new “trust” fund that they can steal from – bigger than Social Security. Their hope is that they can keep doing this long enough until the international banks begin increasing the money supply again. There’s one “slight” problem with this thinking. History shows us that the banks typically keep the credit contraction going for at least ten years. Can you imagine another eight years of $1.5 trillion dollar annual deficits?
It’s somewhat humorous to listen to what Mr. Bernanke had to say today, and watch how the media and investment “professionals” interpreted the remarks. Ben Bernanke didn’t really say anything about the international banks needing to increase lending, or the Fed needing to increase the nation’s money supply. The banks don’t want either of these things to happen. Instead, he cautioned against the size of the US government debt and the problems that exist at Fannie Mae and Freddie Mac – both government run institutions.
Do you see the propaganda being played out? The US government is doing everything in its power to create new debt and keep the nation from sliding further into an extremely severe deflationary spiral. The international banks are saying that government debt is the largest problem – and people are buying it hook, line, and sinker. Yes, government debt is bad since it equates to claims on the future labor of you and me. Our nation is being run by a bunch of Marxist’s. But the government is running these enormous deficits because the bankers have forced their hand. Now the bankers are saying that the government is bad for doing so – as the international banks collapse credit all around the industrialized world on purpose, and proceed to steal the underlying assets of those loans.
Folks, this is not going to end well. It’s not necessarily the next eight to ten years of a major deflationary depression that’s bothering me, but the very real possibility of a major war following that period. History has consistently shown that these economic periods are followed by warfare as a means to quickly reintroduce moderate inflation as a means of increasing the value of the assets that the banks have stolen. Warfare employs lots of people, and the dead soldiers create smaller populations to absorb an increasing money supply.
I’ve been a lone wolf for quite a long time in warning about the deflationary spiral we’re in. We are now seeing the “D” word getting used more frequently by those who can’t avoid the truth any longer:
The Fed's toughest foe: Deflation
U.K. Credit Deflation Spooks Bank Of England
Why Goldman Sachs's Bum Quarter Could be a Sign of Deflation
4 Reasons To Fear Deflation
BOJ Yamaguchi: Long-Term Growth Necessary To Combat Deflation
Your comments are appreciated…
If you are not currently on the Hamill Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
Rumors had been swirling that the Federal Reserve was about to cut the amount of interest on excess reserves they were paying to banks by 0.25%. People felt certain that this would cause banks to begin lending out credit again and contribute to a re-inflation of the economy. They were sadly mistaken. They were wrong because they don’t even understand the basic tenets of the economic game that is being played out before our very eyes.
Ben Bernanke is the Chairman of the Federal Reserve (the “Fed”). His role is to be the mouthpiece for an organization that is entirely controlled by the international banks, and which simply serves as a pipeline between the big banks and the US Federal government.
The international banks began a systematic wind-down of credit in September, 2008. This caused a gigantic contraction in the size of our nation’s money supply – which also caused a very large downturn in the stock market, since stocks perform their best during inflationary periods.
The US government has spent the intervening time trying to artificially pump the money supply back up. They’re very constrained in doing so, since they can’t print money. Only the Fed can do that. Instead, the Federal government has been creating as much new debt as they can muster by selling US Treasury securities at a furious pace. They also passed new Health Care legislation to create a mountainous new “trust” fund that they can steal from – bigger than Social Security. Their hope is that they can keep doing this long enough until the international banks begin increasing the money supply again. There’s one “slight” problem with this thinking. History shows us that the banks typically keep the credit contraction going for at least ten years. Can you imagine another eight years of $1.5 trillion dollar annual deficits?
It’s somewhat humorous to listen to what Mr. Bernanke had to say today, and watch how the media and investment “professionals” interpreted the remarks. Ben Bernanke didn’t really say anything about the international banks needing to increase lending, or the Fed needing to increase the nation’s money supply. The banks don’t want either of these things to happen. Instead, he cautioned against the size of the US government debt and the problems that exist at Fannie Mae and Freddie Mac – both government run institutions.
Do you see the propaganda being played out? The US government is doing everything in its power to create new debt and keep the nation from sliding further into an extremely severe deflationary spiral. The international banks are saying that government debt is the largest problem – and people are buying it hook, line, and sinker. Yes, government debt is bad since it equates to claims on the future labor of you and me. Our nation is being run by a bunch of Marxist’s. But the government is running these enormous deficits because the bankers have forced their hand. Now the bankers are saying that the government is bad for doing so – as the international banks collapse credit all around the industrialized world on purpose, and proceed to steal the underlying assets of those loans.
Folks, this is not going to end well. It’s not necessarily the next eight to ten years of a major deflationary depression that’s bothering me, but the very real possibility of a major war following that period. History has consistently shown that these economic periods are followed by warfare as a means to quickly reintroduce moderate inflation as a means of increasing the value of the assets that the banks have stolen. Warfare employs lots of people, and the dead soldiers create smaller populations to absorb an increasing money supply.
I’ve been a lone wolf for quite a long time in warning about the deflationary spiral we’re in. We are now seeing the “D” word getting used more frequently by those who can’t avoid the truth any longer:
The Fed's toughest foe: Deflation
U.K. Credit Deflation Spooks Bank Of England
Why Goldman Sachs's Bum Quarter Could be a Sign of Deflation
4 Reasons To Fear Deflation
BOJ Yamaguchi: Long-Term Growth Necessary To Combat Deflation
Your comments are appreciated…
If you are not currently on the Hamill Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added.
There is no charge and your email address will never be shared.
Christian Economics, Christian Finances, Christian Money, Christian Wealth, Christian Mortgage, Christian Mortgage Advice, Christian Mortgage Counsel, Christian Mortgage Consulting, Christian Investing, Biblical Economics, Biblical Finances, Biblical Money, Biblical Wealth, Biblical Mortgage, Biblical Mortgage Advice, Biblical Mortgage Counsel, Biblical Mortgage Consulting, Biblical Investing, Creating Wealth, Mortgages For Christians