[mikemike]

Well the chartalists out there can start to mope, it looks like Ben is not an MMT convert. Hes throwing in the towel on creating money and passing the responsibilities back to congress to actually get something done.

So now, if MMT is going to save the economy it will need to convert a majority of both houses of congress and the president of its merits so that they can first, pass a huge increase in the debt limit and second, pass huge spending bills. Don't hold your breathe on that sequence of events happening.

In other words, the safety net has been removed and its up to the everyone outside of the beltway to find their own path to prosperity.

"It's a hard message," said John Silvia, chief economist at Wells Fargo. "A lot of the issues -- such as, what are you going to do about the federal deficit, what about tax increases, what about spending cuts, what about regulatory policy -- really are outside the purview of the Fed."

"Monetary policy cannot be a panacea," Bernanke said in the speech. "The economy is still producing at levels well below its potential."

"If the nation is to have a healthy economic future, policymakers urgently need to put the federal government's finances on a sustainable trajectory," he said during the speech.

Bernanke Sees No New Federal Reserve Stimulus Despite Flagging Economy

[shooz]

Helicopter Ben?
Honestly, where do you hear these things.

[jeffkrol]

Well the chartalists out there can start to mope, it looks like Ben is not an MMT convert. Hes throwing in the towel on creating money and passing the responsibilities back to congress to actually get something done.

So now, if MMT is going to save the economy it will need to convert a majority of both houses of congress and the president of its merits so that they can first, pass a huge increase in the debt limit and second, pass huge spending bills. Don't hold your breathe on that sequence of events happening.

In other words, the safety net has been removed and its up to the everyone outside of the beltway to find their own path to prosperity.


Bernanke Sees No New Federal Reserve Stimulus Despite Flagging Economy

Bernanke has always been clueless.. and why listen to Oligarchs

"It's a hard message," said John Silvia, chief economist at Wells Fargo. "A lot of the issues -- such as, what are you going to do about the federal deficit, what about tax increases, what about spending cuts, what about regulatory policy -- really are outside the purview of the Fed."

Well Fargo???? give me a break

Let's put this simply.. Psychologically QE3 is dead in the water and the Banks like Wells have massive amounts of bad paper yet.

So what is in their best interest.. to wait and make sure the "fed" collects enough "psychological brownie points" (ie continued to fail economy/banks) till THEY (the banks) need the stimulus again..

It is in their self interest to prolong any new "money printing till "THEY " need it and will ask the Fed for it. Let's call it the banks way pf "saving for a rainy day".....

Seems they only use one picture of him
http://www.theaustralian.com.au/business/industry-sectors/fed-boss-backs-act...-1226071987216

http://moslereconomics.com/2011/06/07/bernanke-admits-economy-slowing-no-hint-of-new-stimulus/

And the tough talk about the long term deficit plays to this theme as well, even as the Chairman recognizes the downside risks to immediate budget cuts, as he continues to see the risks as asymetric. The Fed believes it can deal with inflation, should that happen, but that it’s come to the end of the tool box, for all practical purposes, in their fight against deflation, even as they fail to meet either of their dual mandates of full employment and price stability to their satisfaction.

They also see downside risk to US GDP from China, Japan, and Europe for all the well publicized reasons.

And, with regard to statements warning against immediate budget cuts, I have some reason to believe at least one Fed official has read my book and is aware of MMT in general.

Ben is a MMTINO (CINO, MSINO NKINO) pick one..

Those who try to paint Bernanke as a Keynesian need to do their homework. He is quite clearly much more of a monetarist, in the Friedman mold, than a Keynesian. Those who have studied economics know that today's 'New Keynesians' are far removed from that which was proffered by John Maynard Keynes. 'New Keynesians' have adopted much of Friedman's monetarist theory, but not enough.

If you took the time to read Bernanke's speech, I think it puts to rest the Keynesian charge. So, while Bernanke is not a supply sider, like Hubbard, he is more in the mold of Friedman than he is Keynes.

http://www.freerepublic.com/focus/f-news/1508720/posts

[mikemike]

Let's put this simply.. Psychologically QE3 is dead in the water and the Banks like Wells have massive amounts of bad paper yet.
So what is in their best interest.. to wait and make sure the "fed" collects enough "psychological brownie points" (ie continued to fail economy/banks) till THEY (the banks) need the stimulus again..
It is in their self interest to prolong any new "money printing till "THEY " need it and will ask the Fed for it. Let's call it the banks way pf "saving for a rainy day".....

Reading what he said, it seems like he backed himself into a corner (at least in the short term). He can't really do anything until congress acts without contradicting himself and seeming feckless with the country's monetary policy. What I could see happening is that congress makes a bold move and the fed steps in with easy money to help make that change as painless as possible.

This statement certainly rules out any possibility that MMT ideas like not issuing debt and increasing federal deficit spending to stimulate the economy has even the slightest foothold in the mindsets of the decision makers at the fed.

Helicopter Ben?
Honestly, where do you hear these things.

This was a reference to a policy document he released where he described one of the techniques the fed was using to try and aid recovery as a "helicopter drop" to pump money and liquidity into the economy.


Will "Helicopter Ben" Bernanke Ride to the Rescue? - BusinessWeek

[shooz]

Do I get any?

BTW Mike, if there is one thing you and I could probably agree on, it's the fact that the banking cartel we currently call the Federal Reserve Bank needs to end, as we know it.

I'm no fan of any of them, Bernanke included.
Just wondered where the helicopter thing came from.
Thanks for 'splaining.......

[Parallax]

Do I get any?

Here's a simple test:

1. Are you a large corporation who needs the money because of losses due to mismanagement?
2. Are you in the investment/brokerage/banking industry and responsible for tens of thousands of people loosing part/most/all of their life savings or retirement accounts?
3. Have you made campaign contributions in amounts greater than most Americans earn each year to any political campaign?

If you work for a living (or have worked regularly and retired) and answered "no" to all of the above, then no, you don't get any of the money.

[shooz]

RATZZZZ!!!!!!!
I was hoping.

How about a parachute drop of 645Ds?