Lie By Omission (Bernanke)

The lie is so convincing too!

The Fed’s asset purchases are not government spending, because the assets the Fed acquired will ultimately be sold back into the market.

Factually true but intentionally misleading.

The Fed’s purchases are not themselves government spending, but every bond purchased by The Fed came into existence as a consequence of government deficit spending.

So while the claim itself is true, without the purchases the government would have to pay more to borrow the money it wanted to spend but was unwilling to tax — or might not be able to borrow it at any commercially reasonable set of terms at all.

Of course Bernanke doesn’t bother mentioning that little detail…. just like the drug pusher doesn’t mention that without his drugs the user who just cacked himself with a giant speedball couldn’t have attempted to get high (and killed himself instead.)

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