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Ron Paul: Bernanke Admits Economy Is In Bad Shape
Fed continues the destruction of the dollar with QE3
Kit Daniels
Prison Planet.com
September 19, 2013
This morning, former congressman Dr. Ron Paul explained why Federal Reserve chairman Ben Bernankes unexpected decision yesterday to continue pumping $85 billion a month into the economy is bad for the American people.
On todays edition of MSNBCs Morning Joe show, anchor Joe Scarborough asked Dr. Paul what he thought about this mornings front page of the Wall Street Journal: Fed Stays On Easy-Money Course.
I think that its a major admission by Bernanke that things arent good, Paul said. Hes literally saying Were in bad shape!
Yet the markets didnt interpret it that way because the markets are reflecting just that easy money going into the stocks but it doesnt help those 99% or at least the large middle class and poor; it wont help them one bit.
Paul further stated that it wont help Americans get jobs, so theres still a large disconnect between Wall Street and the public.
I think it was a very, very bad announcement yesterday that the economy is a lot worse off, he continued. I think in time that will prove to be the case.
Other economic indicators back up Dr. Pauls statements.
This morning, the price of oil rose above $108 a barrel after the Fed decided to keep their inflation-creating policy called quantitative easing unchanged.
In making that decision, officials with the central bank admitted that the growth of the economy hadnt met their expectations and they even lowered next years outlook.
The Fed began this current iteration of quantitative easing, the third one since 2008, back in Sept. 2012.
Initially with QE3, the Fed pumped $40 billion of new currency into the economy per month through an open-ended bond purchasing program.
Last December, the Federal Open Market Committee increased money creation to $85 billion per month, which has continued into the present, contrary to its decision in June to scale it back this month.
The Federal Reserve Bank of San Francisco, however, admitted that after five years of quantitative easing, bond purchasing programs have had little effect on the economy.
The chart below shows the U.S. GDP growth in nominal terms (the dark blue line), the performance of the Dow Jones Industrial Average (the black line), and the real GDP growth that accounts for inflation (the light blue line):
Prison Planet.com » Ron Paul: Bernanke Admits Economy Is In Bad Shape
Related posts:
Bernanke Admits Borrowing and Spending Are Disastrous for Economy
Bernanke Is Either Not Very Bright or Not Very Honest. He Admits He Doesnt Know Why We Have a Weak Economy But Hes the One Who Weakened It
As Predicted, Bernanke Launches QE3 to Help the Big Banks Which Will Destroy the Economy
Hussman: Bernankes Quantitative Easing Is About To Trigger A Collapse In The US Dollar
Bernanke Knew Back in 1988 that Quantitative Easing Doesnt Work
Prison Planet.com » Ron Paul: Bernanke Admits Economy Is In Bad Shape
Fed continues the destruction of the dollar with QE3
Kit Daniels
Prison Planet.com
September 19, 2013
This morning, former congressman Dr. Ron Paul explained why Federal Reserve chairman Ben Bernankes unexpected decision yesterday to continue pumping $85 billion a month into the economy is bad for the American people.
On todays edition of MSNBCs Morning Joe show, anchor Joe Scarborough asked Dr. Paul what he thought about this mornings front page of the Wall Street Journal: Fed Stays On Easy-Money Course.
I think that its a major admission by Bernanke that things arent good, Paul said. Hes literally saying Were in bad shape!
Yet the markets didnt interpret it that way because the markets are reflecting just that easy money going into the stocks but it doesnt help those 99% or at least the large middle class and poor; it wont help them one bit.
Paul further stated that it wont help Americans get jobs, so theres still a large disconnect between Wall Street and the public.
I think it was a very, very bad announcement yesterday that the economy is a lot worse off, he continued. I think in time that will prove to be the case.
Other economic indicators back up Dr. Pauls statements.
This morning, the price of oil rose above $108 a barrel after the Fed decided to keep their inflation-creating policy called quantitative easing unchanged.
In making that decision, officials with the central bank admitted that the growth of the economy hadnt met their expectations and they even lowered next years outlook.
The Fed began this current iteration of quantitative easing, the third one since 2008, back in Sept. 2012.
Initially with QE3, the Fed pumped $40 billion of new currency into the economy per month through an open-ended bond purchasing program.
Last December, the Federal Open Market Committee increased money creation to $85 billion per month, which has continued into the present, contrary to its decision in June to scale it back this month.
The Federal Reserve Bank of San Francisco, however, admitted that after five years of quantitative easing, bond purchasing programs have had little effect on the economy.
The chart below shows the U.S. GDP growth in nominal terms (the dark blue line), the performance of the Dow Jones Industrial Average (the black line), and the real GDP growth that accounts for inflation (the light blue line):
Prison Planet.com » Ron Paul: Bernanke Admits Economy Is In Bad Shape
Related posts:
Bernanke Admits Borrowing and Spending Are Disastrous for Economy
Bernanke Is Either Not Very Bright or Not Very Honest. He Admits He Doesnt Know Why We Have a Weak Economy But Hes the One Who Weakened It
As Predicted, Bernanke Launches QE3 to Help the Big Banks Which Will Destroy the Economy
Hussman: Bernankes Quantitative Easing Is About To Trigger A Collapse In The US Dollar
Bernanke Knew Back in 1988 that Quantitative Easing Doesnt Work
Prison Planet.com » Ron Paul: Bernanke Admits Economy Is In Bad Shape