Fed Boss Blames You for Depression

Ben Bernanke is “puzzled” (as Bloomberg puts it) by the fact consumers are not running out to buy cheap “goods” manufactured by slaves in China.

Bernanke remains mum on “additional measures” and the big casino on Wall Street tumbles.
“Federal Reserve Chairman Ben Bernanke said he’s surprised by how cautious consumers have been in the two years since the recession officially ended,” Bloomberg reports, repeating the lie that the “recession” ended a long time ago. (The “double-dip recession” explanation is also a fabrication.)
“Even taking into account the many financial pressures they face, households seem exceptionally cautious,” Bernanke will say in a speech to be delivered in Minneapolis.
In other words, it’s your fault. If you’d only go out and buy stuff the economy would recover. Inflation – reflected in higher prices for gas, cars and other consumer goods – has nothing to do with the Federal Reserve expanding the money supply (they like to call it “stimulus”). It’s a temporary phenomenon, according to Helicopter Ben.
“But he said the increases were partly because of temporary factors, such as supply chain disruptions stemming from the Japan crisis. He said he expects inflation will moderate in the coming months as those factors ease,” Bloomberg notes.
Inflation is a monetary phenomenon, as Milton Friedman knew. It is really quite simple and contrary to what Bernanke says. Inflation is not caused by “supply chain disruptions.” It’s caused by the private Federal Reserve expanding the money supply.
“If the amount of goods stays the same and the monetary authority increases the amount of money, then it will take more money to buy the same amount of goods, which means that prices will rise,” explains Gary Wolfram. “This simple point should make it clear that inflation cannot be caused by monopolies, or unions, or decreasing taxes. It is always caused by the supply of money rising faster than the supply of goods.”
Inflation is created by the Federal Reserve, not the earthquake and tsunami in Japan.
Here’s what Bernanke is not telling you – bankers and governments love inflation. It’s the centerpiece of the fractional reserve scam. Inflation reduces future bad debts by making debt servicing easier and also delivers up a steady stream of debtor victims for the banksters.
“Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services,” explains Ron Paul. “Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier. But it certainly can make it poorer.”
Ben Bernanke, who has admitted the Fed engineered the last Great Depression, wants you to buy into his simplistic lie about supply chains and natural disasters causing inflation. The establishment and its megaphone, script-reading media hate and fear Ron Paul because he is on the national stage and telling the truth. That’s why they are trying desperately to marginalize him. He’ll wreck the swindle and upturn the Fed’s apple cart.
Going out and spending money you don’t have – money that is worth a fraction of its value before 1913 and the creation of the Federal Reserve – will not end the Greatest Depression breathing down our necks.
Ending the Fed and fractional reserve banking will.