WHAT IS THE TRUTH?
Ben Bernanke tells 60 Minutes that the so-called Wealth Gap is ruining America.
I did not see the show. Apparently he said this with a straight face. I wonder if he blamed the government for this, as he is blaming the government for the fiscal indiscipline, which is also 'ruining America'.
I agree that the violent creation and demonic extension of the Wealth Gap is ruining America. But does Ben Bernanke not realize that he and his friends on the Central Bank Board (and his predecessor Mister Greenspan) are the ones who are fueling the debt bubble that is ruining America and creating the wealth gap and continuing to desperately try to vitalize the wealth gap? A desperate attempt to recreate a Housing Bubble, to drive housing prices up to levels that Americans could not afford: does that not qualify as a demonic impulse designed to create a feudal society in America?
From the BusinessInsider web page below:
When asked about rising inequality in the United States, Mr. Bernanke offered a response that was likely to be embraced by liberals.
"It's a very bad development," he said. "It's creating two societies. And it's based very much, I think, on educational differences. The unemployment rate we've been talking about. If you're a college graduate, unemployment is 5 percent. If you're a high school graduate, it's 10 percent or more. It's a very big difference."
Mr. Bernanke added: "It leads to an unequal society, and a society which doesn't have the cohesion that we'd like to see."
The chart below shows how the Fed's inflation agenda from 1983-2001...and continuing is adding to the gap between the 10% and the 90%. The gap between the top 1% and the bottom 80% used to be, in 1980, $270,000 - $50,000. Now, after too many years of Greenspan and Bernanke, it is $1.1 million to $50,000 (an approximation based on the chart).
Can Bernanke look at this chart and not see his own involvement in this 'plan'. This wealth gap is the most it has been in America since the 1920's, which, of course, ended with the Great Depression and the World War. All of these effects are related to the Debt Bubbles low rates create and the destruction of debt required after long periods of flooding the world with cheap money.
Is this man an idiot? What is creating the 'educational differences'? Inflation of costs of higher education, making it possible only for the rich and the upper middle class to attend college. What created this inflation of costs? The debt binge and the escalation of inflation in America from 1983.
I worked for 30 years in academia from 1977-2008, at the University of Oregon. In those 30 years, the price of tuition increased 3000%. Yes: 3000%. And the Fed says there is no inflation.
Many people who could not find jobs after the economic growth cycle ended in 2001 returned to colleges and universities in order to collect student loans IN ORDER TO SURVIVE ECONOMICALLY. These people do not show up in the unemployment rolls. But they are showing up in the increase in the student loan debt picture.
Student loans are also a huge bubble that is going to pop and create another American crisis. Students who graduate with a hefty loan and find no job growth in America will be forced to default on these loans.
Who is going to create non-minimum-wage paying jobs in America? Not Wall Street. Wall Street wants to export jobs to other parts of the world where they can hire cheap labor.
THIS IS A NEW IDEA, ABOUT WHICH YOU WILL NEED TO THINK, BEFORE DISMISSING: ECONOMIC GROWTH IS INFLATION.
Let's think about economic growth and inflation in a new way. Let's get rid of all the old academic definitions we have learned in the past that defines "good growth" as inflation without wage inflation and "bad growth" as inflation with wage inflation. We got rid of wage inflation by shipping all our high-paying jobs to the Third World. Wall Street did this for us; Washington was culpable.
What do you have when you have economic growth without wage inflation but with debt growth? You have...INFLATION.
This is a picture of what I call 'invisible inflation':
This picture (below) shows clearly that the economic growth/inflation from 1911 to 1929 (1933) was almost entirely invisible inflation (debt, not wage inflation). The economic growth/inflation from 1947 to 1965 was almost entirely wage inflation -- which resulted in the stagnation of 1965-1983 and the panic over high inflation levels. The economic growth/inflation from 1983 to 2001, again, was invisible inflation (all debt, not wage inflation).
Why would the government design a statistical instrument that measures inflation but only measures visible inflation (wage inflation) and not invisible inflation (debt inflation)? That's a good question. If everyone believes that the CPI describes reality, then the government can use the CPI for its own ends, which is INFLATION, INFLATION, INFLATION. This means more money for the world's banks, and more escalation of prices, which is good for business, and good for the rich of the world.
Those who control the debt control power in the world.
The Federal deficit is another form of debt that is controlled by the Fed. The Fed does not pass bills in Congress that adversaries call abusively 'entitlement' programs: social security, food stamps, health care. But the Fed, by keeping interest rates jammed to the floor, encourages the Congress to borrow more money. In fact, Fed policies of low interest rates is an encouragement to re-leverage, to take on more debt -- not to de-leverage. More fees for banks; and if the government is protecting the banks from failure, then why not more borrowing, even from over-leveraged borrowers. It's a good system for Americans who should not be qualified to borrow money: if they fail to fulfill the terms of the loan, the bank doesn't take the loss, American tax-payers do. Wow! Who thought this up? This is a perfect method to teach theft, irresponsibility, and deceit.
John Mason writes in his latest blog that Bernanke's policies (QE, ZIRP, etc) are "Underwriting the Rich". How can we see it otherwise?
It is Bernanke (and Greenspan) who created and continue to create a greater wealth disparity -- and it is Wall Street and their natural allies in the Republican Party whose zeal to destroy America's unions that also destroyed wage growth in America, making debt slavery the only option for most middle class and lower working class Americans.
By inflating the cost of everything but computer chips from 1983-present, and by working together to destroy wage growth in America for 80% of Americans, the forces of the rich 1% (or even 20%) have taken major steps to destroy America. Bernanke sees that America is being destroyed. He just refuses to take responsibility for it, blaming it on differing 'levels of education'. This man is not so stupid as that. He knows what he is doing. He is a politician after all.
America will have a civil war if this continues. Obama needs to wise up. Bernanke is not his friend. Bernanke is the devil in the details. Bernanke is the dark force who is working to do what one of his apparent idols warned us against, John Maynard Keynes, who writes:
Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.
Ben Bernanke is ruining America. He needs to be stopped. He is a thief, by his own master's definition.
Michael J. Clark, CGTS