Bernanke Isn’t Bluffing — He’s Lying


Fox News ran the following:

Bernanke is Bluffing: Fed Powerless to Avert Recession

The Federal Reserve has indicated it will take further steps as necessary to  promote a stronger economic recovery. Sadly, the Fed’s bullets are spent, and  the U.S. economy is skidding as a result of Administration missteps.

The Fed isn’t bluffing, it’s lying.

Likewise, the ECB isn’t bluffing, it’s lying too.

Why do I say this?  Because we never left Recession.

The fact is that government money-blowing financed through credit emission by The Fed has covered up what is an ongoing deep recession meeting the economic criteria for a Depression.

CNBC is falling over itself this morning trying to “explain” why the ECB didn’t do anything other than jawbone.  We had the same sort of nonsense with everyone “expecting” QE.  But QE didn’t work because it can’t — when you have a debt overhang and people are unwilling or unable to borrow you can’t force demand higher by increasing borrowing as the reaction you want doesn’t occur.

All that happens is that you crank up the welfare state, you crank up the handouts and you destroy the common man’s purchasing power at the same time.

This is “progress”?  Like hell it is — it makes things worse!

The market is still levitating, as it has been levitating for more than two years, on the back of lies.

That time is coming to a close.

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