Bernanke is Killing Us to Save the Politicians

banks, Bernanke, Fed, Government Tagged with: Ben Bernanke, Excessive Debt, James Quinn, Keynesians

Jun 132011

James Quinn excoriates Fed Chairman Ben Bernanke in his recent piece QE2 — The Bernanke Chronicles:

Ben Bernanke wants it both ways. He is trapped in a web of his own making and he will lie, obfuscate, hold press conferences, write editorials, seek interviews on 60 Minutes, and sacrifice the US dollar in order to prove that his economic theories are sound. They are not sound. They are reckless, crazy, and will eventually destroy the US economic system. You cannot solve a crisis caused by excessive debt by creating twice as much debt. The man must be judged by his words, actions and results.

The article is a damning piece on Bernanke’s policies and how they have failed the country despite Bernanke’s claims for success.

It is difficult to imagine worse foresight, monetary policy and likely illegal actions taken by one man. Still he prates on regarding how we are coming out of our economic crisis. The reality is that we have just sunk deeper into a hole that would might have been possible to dig out of and no longer is.

Bernanke, Krugman and other Keynesians of their ilk know only stimulus, even when it is too late for stimulus to have any positive effects. These one-trick-pony economists are at loss for what to do next, other than claim more of the same and in bigger doses is the solution. Unfortunately, it is exactly the cumulative effects of past stimulus that have reduced the economy to a cripple. More of the same will only make matters worse than they already are.

To be fair to Mr. Bernanke, he is only following orders. The political establishment knows that if he stops, they are doomed. The underlying problem is government spending which is no longer fundable in credit markets. Rather than face the reality that the government is too big and not sustainable, they call on Mr. Bernanke to extend their charade. Hence Mr. Bernanke is less a Central Banker than the Treasury’s banker.

Bernanke is now engaged in the same sub-prime lending that collapsed our economy once and will do so again. The government will never be able to pay its debts back. That has become apparent to anyone with an IQ above room temperature. The next collapse will be much more severe and may also cost us our political system.