Not even a month after the first hints of QE2 at Jackson Hole, Wyoming when Bernanke opined only if economic conditions deteriorated "materially" would he unleash the tsunami of liquidity, I penned a piece [Sep 22, 2010: Bernanke Lied to Us] when it became clear via speeches and hints dropped in major papers that Bernanke had found his weapons of mass destruction. He was going to move ahead, no matter what the economic conditions did; the language he used was just for show. Indeed, one can argue economic conditions have improved since late August, rather than flattening out or "materially weakened". Hence, there are again no WMDs but like Bush, he is a man on a mission, and facts on the ground won't get in the way of the REAL reasons (laid out in multiple pieces) for this fiasco strategy.
You should be very peeved. Everything in this country is run for debtors, speculators, multinational corporate interests and the banking oligarchy. This is just another one.... under the guise of whatever reasoning is convenient to use.
Now, about 7 weeks later many of the things I predicted have come to be - already! And actual QE2 has not even begun. In that piece:
We saw in late 2007 to mid 2008 the effect of food price inflation on 2nd and 3rd world countries. Mud cakes anyone? [Jan 30, 2008: Hungry Haitians Resort to Eating Dirt ] But who the hell cares about pricing foodstuffs out of the reach of "those people?" [Apr 14, 2008: Food Inflation, Riots Spark Worries for World Leaders]. We have speculators to please in the U.S.
The biggest sin in American policy is "making the markets upset". As long as the speculator class can take primary dealer money, lever it up 7:1 (down from 20:1 in 2008) and run up the price of any soft or hard asset - it's all good. [Apr 28, 2008: Wall Street Grain Hoarding Brings Farmers, Consumers Near Ruin]. Heck who the hell cares about Americans' affordability of food either [Nov 14, 2008: Wall Street Journal - A Run on (Food) Banks]... that's what the food stamp program is for right? [Nov 29, 2009: 1 in 4 Children, and 1 in 8 Americans Now on Food Stamps] [Oct 30, 2009: Costco to Roll Out Food Stamps Nationwide.] As long as the banking oligarchy and stock pickers on CNBC are pleased, I am pleased.[Apr 6, 2008: Agflation Hits Rice - Prices Up 50% in 2 Weeks]
- [Feb 27, 2008: OFHEO Increases Allowance for Fannie Mae]
- [Mar 19, 2008: Fannie, Freddie Layered with MORE Risk]
Instead their actions worsened the situation, and there were not enough fingers to plug the bursting dam. [Sep 7, 2008: Bailout Nation Continues - Fannie/Freddie Now Owned by You] So what does FanFredron have to do with the Fed? It's the same line of thinking - the eternal kick the can down the road, and only 'successful' by ability to print money and never face the music. So just as then, I'll write posts on the "internets" and they will be ignored as those who live in textbooks go about their merry ways, blowing things up in their ever so predictable pattern.
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