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BERNANKE FOR BUNKERS

Ben Bernanke was re-appointed by Obama today. He truly believes that he saved the world. He did not save the world. He created more money out of thin air than any man in the history of mankind. Please look at the chart below from my recent article. Look at how much stimulus has been applied versus every other recession since 1929. Our GDP is $14 Trillion. 29.9% of $14 Trillion = $4.2 Trillion. Ben, George, and Barack have thrown $4.2 Trillion of your tax dollars at this crisis and this is what we get? 16% unemployment, 1% GDP growth, 3 million foreclosures, 0% on our savings accounts, and a National Debt of $15 Trillion in 2 years.

The man has proven to be incompetent at forecasting, regulating, monitoring, interpreting and managing. He has proven competent at kissing ass, threatening CEOs, and printing money. This academic expiriment in monetary policy will blow up in the mad professor's face. We will all suffer when the dollar ultimately crashes. Ben will likely be the last Federal Reserve Chairman. With Bernanke as Chairman, I suggest everyone starting building your bunkers.

 

In a speech at the Kansas City Fed's annual retreat in Jackson Hole, Wyo., Bernanke summarized a hellish year and explained modestly how he and his central bank colleagues saved the world from a bigger disaster.

"The world has been through the most severe financial crisis since the Great Depression," he said. "As severe as the economic impact has been, however, the outcome could have been decidedly worse."

If the Fed, other central banks and other government leaders hadn't acted in a coordinated and aggressive way in September and October of 2008, "the resulting global downturn could have been extraordinarily deep and protracted," Bernanke said.

The policy response "averted the imminent collapse of the global financial system, an outcome that seemed all too possible to the finance ministers and central bankers."



  

               

 

 

Length

Decline in

           Stimulus as a % of GDP

 

Peak

Trough

(months)

real GDP

Monetary

Fiscal

Combined

 

August-29

March-33

43

27.0%

3.4%

4.9%

8.3%

 

May-37

June-38

13

3.4%

0.0%

2.2%

2.2%

 

November-48

November-49

11

1.7%

-2.2%

5.5%

3.3%

 

July-53

May-54

10

2.7%

0.0%

-1.4%

-1.4%

 

August-57

April-58

8

3.2%

0.0%

3.2%

3.2%

 

April-60

February-61

10

1.0%

0.7%

1.0%

1.7%

 

December-69

November-70

11

0.2%

0.3%

2.4%

2.7%

 

November-73

March-75

16

3.1%

0.9%

3.1%

4.0%

 

January-80

July-80

6

2.2%

0.4%

1.1%

1.5%

 

July-81

November-82

16

2.6%

0.3%

3.5%

3.8%

 

July-90

March-91

8

1.3%

1.0%

1.8%

2.8%

 

March-01

November-01

8

0.2%

1.3%

5.9%

7.2%

 

December-07

 

15

1.8%

18.0%

11.9%

29.9%

 * Est.

Source: Grant’s Interest Rate Observer