Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

Pro FED people here are true examples of human failure of highest proportions.

United States has un-payable debt
United States Currency lost large % of value
FED has been caught buying its own bonds incognito
FED was unable/didn't want to stop 1929 crash and depression
FED was unable/didn't want to stop subprime economic crash


AND LO AND BEHOLD PEOPLE STILL SUPPORT THE FED

People stand behind the FED.

You are morons of the highest order, even if you are paid to be FED shill, You are still morons because you are helping to destroy future of your own country

how fuking moronic is that
 
The fractional reserve banking system can generate more money than Bernanke... if there are 100 million homes in the US and they all rise $13,000 that's 1.3 Trillion.. if people are buying and selling maybe 20% of those homes in a business cycle and borrowing to do so, and borrowing some extra to spend, then just the RE market might create more than Barnanke in one business cycle run-up...

To put things in perspective, the richest person on earth could not pay to feed all the birds on earth for one day...

Otoh, we have unfunded liabilities to the tune of about $1 million per taxpayer... so it's over, whatever is being done is just rearranging the seats on the Titanic..
 
Quote from maxpi:

The fractional reserve banking system can generate more money than Bernanke... if there are 100 million homes in the US and they all rise $13,000 that's 1.3 Trillion.. if people are buying and selling maybe 20% of those homes in a business cycle and borrowing to do so, and borrowing some extra to spend, then just the RE market might create more than Barnanke in one business cycle run-up...

To put things in perspective, the richest person on earth could not pay to feed all the birds on earth for one day...

Otoh, we have unfunded liabilities to the tune of about $1 million per taxpayer... so it's over, whatever is being done is just rearranging the seats on the Titanic..
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But.....the FED controls interest rates which controls lending demand, which controls money supply.

The whole thesis behind Central Banks was to mitigate the business cycle (tighten during booms, loosen during busts).

Instead, the FED exacerbated it. Kept it low during booms, then ultra-low during busts. The net effect is the system never purged itself of malinvestment so we've got 3 decades worth of excess crap lodged in the system. Doesn't anybody wonder why the DJIA did 600% over thirty years? Nope. They just think its "Free money". Same with home prices. Average per annum GDP is ~2%, yet home prices were going up like 8% a year. Nobody cares or even thinks where this money comes from. It's all Greek to them :D
 
what is disturbing is the trillions were to pay for the 10 billion dollar booked profits for wall street firms and million dollar bonuses.

it's not printed,,,it's debt...that the taxpayer now owes. those newly printed money is IOU...money is hot potatoes in theory. The FED owes money..that is why the FED doesn't want to be audited. there is no incenetive to save or can't save with lower standards of living. min. wage job earners don't have any savings. you are better off spending the money than putting it in the bank making no interest..there was a time when money had value,,you pay interest to 'borrow' money.

and the savers are paying for the rise in the markets with zero 2% interest and rising gas prices...oh yeah there is no free lunch...who paying for this... dollar lost 30% in value since 2000.

Quote from bearice:

Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week. I was dumbfounded when I saw Bernanke shake his head in the affirmative as Representative Ron Paul said, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.” I was amazed he admitted this. I looked up the original hearing on C-Span to make sure the clip was not edited. It was not.

What is even more shocking is I could not find a single mainstream news agency that covered this revelation. Congress just finished voting on the bitterly contested Obama health care bill that is supposed to cost nearly a trillion dollars over ten years. (Some contend it will be more than twice that amount.) The mainstream media doesn’t even bat an eye over the Fed creating $1.3 trillion in a little more than a year to buy worthless debt no one else will touch. I do not get it. I guess we could have asked the Fed to print up a trillion dollars to pay for health care and avoided that drawn out battle in Congress.

Then, Rep. Paul brings up printing another $105 billion to bailout Greece. Bernanke answers by saying, “. . . I think one of the agreements that the G20 leaders came up with was sort of a mutual commitment to put more money into the IMF as a way of addressing the financial crisis around the world. . .” Notice how Bernanke used the term “mutual commitment.” I think what that really means is an agreement between all the G-20 nations of a “mutual debasement of their currencies.” I think this is why gold has been rising in price around the globe. I have been saying for months that we are going to have some very big inflation. (Real inflation is already at 9.5% according to shadowstats.com.) I wrote about this last November in a post called “The Fix Is In.”

I think Bernanke just opened the Fed playbook and revealed money will be printed to fix all financial problems. I don’t think he’s even trying to hide it anymore. Rep. Paul also brought up the big debt trouble coming soon with many, many bankrupt cities and states such as Los Angeles and California. I think they will all be bailed out one way or another by the printing press.

New York Fed President William Dudley seems to be on the same page as his boss. Dudley recently said, “The fact that our foreign indebtedness is for the most part denominated in our own currency is a huge advantage in the event the dollar were to come under significant downward pressure.” (Zero Hedge has a complete text of Dudley’s speech, click here) Is Dudley making a not so subtle hint about devaluing the U.S. dollar? Once again, I say yes.

Anyone with a savings account or money market denominated in dollars should be terrified. You have scrimped and saved only to have the Fed print money and devalue what you have worked so hard for! Inflation has been chosen for you by the Federal Reserve, and we the taxpayers can’t even audit its actions. Below is the video from the Joint Economic Committee Hearing last week. Watch for yourself Bernanke nod yes to printing $1.3 trillion:

http://usawatchdog.com/bernanke-admits-printing-1-3-trillion-out-of-thin-air/
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Quote from gastropod:

I think the point was that the US is going to "loan"/"give" the IMF $105 billion in spite of the fact that we have huge debts ourselves and that the FedRes will have to print/monetize that $105 billion as well.

-gastropod
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Plenty for everyone. Chicken in every Pot!
 
Quote from Martinghoul:

Huh? Yet again, what does the Fed have to do with any of this? The US Treasury issues debt and the US govt will be providing the funds to the IMF. What printing/monetization are you talking about?

I am obviously referring to the subject of the article that the OP quoted. The article mentions $1.3trn of outright UST/agency debt/agency MBS purchases. The fact that these purchases involved creation of new bank reserves had been known for more than a year.

If it is monetization, how is it not the same? GSEs are explicitly guaranteed by the US Treasury, no matter what Barney Frank says. Moreover, the Fed did purchase $300bn UST, along with a $1.25trn agency MBS and $200bn of agency debt.
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http://www.elitetrader.com/vb/showthread.php?s=&threadid=192311

Check the above ET post. Now that the Fed has helped the banks, they don't want to monetize any normal gov't debt.
 
Go buy a new Miami condo before the Greeks with sneakers snap them all up. They cost $350 per foot to build and you can get them for around $65 per foot....what kind of inflation is that?
 
I read somewhere the US currency is the easiest of the major currencies to forge and the Russian mafia has printing presses going full tit printing notes.

Maybe I should run myself up a million or 2. Better make it a billion or 2 while we are at it.

If widow Twankey can why not me too ?

I can just see Ivan playing poker with Bernanke
I will up your billion by another 2 billion !! Make that 1 billion, the ink isn't dry yet on the last run :)
 
What's all the FUSS about. Have we been asleep the last 100 plus years. Evidently YES. Inflation is nothing new. It's the way of the world. Monetizing is the way govmts pay for election promises and overspending to buy your votes. That's why over70% of the world's millionaires acheived wealth through REAL ESTATE. They bought & held fot 20 plus years and inflation (monetization of debt). takes care of the rest. Why are Glen Beck and the conspiracy cults trying to change something that has been with us for decades.
NEWS FLASH! You are not going to change the world. You're not that important! Stop whining, and figure out how to use your newfound knowledge to you advantage. Buy and hold and pass it down to your kids. This is the main way to wealth when your name is not Mayweather, Woods, Gates etc. Get it now?????? LOL!
 
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