Bernanke explains deflation. (In 2002.) (debt, borrowing, interest, money)
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I thought this might be of interest to some of you here. I thought it was interesting.
Very interesting. Very scary. The synopsis of this doctrine seems to be occuring in precise order at the present. The Fed is scared. That makes me scared.
Very interesting! Seems to sum up what we are dealing with at the present time. Should be an interesting next couple of years. I like the part of trying to say the difference between us and Japan. I do not believe there is much of a difference today.
We just might have some stories to tell our grandchildren. I wonder how much they will learn from it?
Its mostly a pack of lies. Creating enough currency is as easy as flipping a light switch. Its the kind of money they want which is difficult to create. The kind of money Benny is talking about is bank debt. Going into debt during deflation is fiscal suicide. It not rocket science.
Bank debt is dead in the water because lending standards have been tightened. Thats deflationary at any Fed rate. Does borrowing money at a low rate so you can lend it to someone who is not solvent to pay it sound like a good deal to you? Who will absorb this new debt to create the currency?
That leaves uncle Sam. Banks don't like when uncle Sam creates too much money because it competes with their interest bearing fractional reserve created money. The solution to their problem is for uncle Sam to create the money and give it to the banks. Then all is well for them.
Merry Christmas and good night all you impoverished rabble shivering in your hovels. Thanks for giving.
Whenever Bernanke takes the mic on national TV, the market automatically dips, I don't know if any of you noticed that, but it's a scary concept.
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