Fed chief Bernanke in the US, together with European Central Bank chief
Draghi in Europe, are implementing the destruction of the euro and the
dollar simultaneously, through hyperinflation, in a desperate attempt
to save the banks -- at least until after November's election in the
US. Unless Obama is removed now, preferably by impeachment BEFORE the election,
then the combined hyperinflationary collapse of the western economies and a
new war in the Mid East, threatening nuclear confrontation with Russia and
China, are inevitable.
The following is in the current
EIR. Mike Billington
Bernanke Opens the Monetary
Spigots
by Paul Gallagher
Sept. 18—Coordinated with, and exactly like European
Central Bank (ECB)
chief Mario Draghi’s announcements,
U.S. Federal Reserve Chairman
“Helicopter
Ben” Bernanke’s Quantitative Easing III policy,
announced
Sept. 13 after the Fed’s Open Market
Committee meeting, is
unlimited money printing, open-ended
in time and volume, and aimed at simply
pouring hundreds
of billions in new Fed notes into the large banks
to bail
them out of their worthless mortgage-backed securities
yet again. Any cynical
attempt, as by Bernanke
himself at his post-meeting press conference, or
by
President Obama, to call this a “Main Street policy” “to
create
employment,” will be rapidly blown away in an
inflationary debt
spiral.
Even the numbskulls at the Fed know what the
inflationary
result will be. QEI and QEII (2008, and 2010,
respectively)
each drove food and fuel price increases
of about 50%, according to generally
accepted statistics.
And even prior to the Bernanke announcement,
the
process was underway in the U.S.: The Labor Department
reported Sept.
14 that wholesale inflation took off
in August. Food prices rose 1%. Fuel
prices rose 13.6%.
Statistical legerdemain (food and fuel don’t get
counted
in the inflation statistics!) kept the overall producer
price rise
to “just” 1.7% for the month, after nearly a
year of claiming no wholesale
inflation at all. So when
the rigged consumer price index was announced
Sept.
15, it showed up 0.7% in August.
And living
standards? Average U.S. hourly earnings
were unchanged, so “real earnings”
fell 0.7% in
the month, according to the Labor Department. Real
weekly
earnings fell 0.6%. It also reported that unemployment
claims are rising
again in the direction of
400,000 (382,000 the week ending Sept. 14).
Then
the Federal Reserve reported that industrial production
dropped 1.2%
in August from July, the largest
one-month drop since “the bottom” in early
2009. Capacity
utilization dropped to 78.2%, lowest in over a
year.
Pump Out the Money Into this
economic contraction, Bernanke promised
to pump $80-85 billion per month,
indefinitely, in net
securities purchases from the banks; zero interest
rates
to mid-2015 (which would make six years); and, if
mass unemployment
and labor force shrinkage do not
improve (“Fewer than half the 8 million jobs
lost in the
recession have been restored,” Bernanke said, despite
Obama’s
claims), the Fed may add additional moneyprinting/
bond-buying to its
announced $80-85 billion
per month at any time.
Former Fed governor Kevin Warsh on CNBC this
morning said of the Fed bailout:
“If they believed the
economy and prospects were moving even slowly to
a
higher path, I don’t think they would have decided to be
nearly as
aggressive as this.”
In effect, Bernanke adopted
“GDP targeting” and
“employment targeting” in a developing situation
of
contracting GDP and employment—a recipe for a hyperinflationary
debt
spiral. At the ECB, “Hyper-Mario”
Draghi adopted “interest-rate targeting” in
the same
spiral. But it’s all going to bail out big banks, which
are
nonetheless unable to lend.
‘QEIV-Ever’ The conservative web
publication The Examiner,
calling it “QEIV-ever,” noted: “The future
consequences
of today’s Federal Reserve action will not be seen
completely
in a day, or in a week, but rather, in totality over
the next
six to nine months. What the Fed did was to . . .
play their final hand, and
by instituting open-ended
quantitative easing, the markets, currencies, and
now,
the American people, understand that inflation, and
possibly
hyper-inflation, are very real
scenarios.”
The Examiner’s co-thinkers at
zerohedge.com had
this to say: “The Fed has as of this moment exposed
its
cards for all to see from here until the moment it has to
start
tightening the money supply (which may or may
not happen; frankly we don’t
think the Fed tightens
until hyperinflation sets in at which point what the
Fed
does is meaningless).”
Economist John
Williams of
shadowstats.com, in an
interview, forecast “hyperinflation, not
late in the
decade as I previously forecast, not in 2014 as I said
more
recently, but hyperinflation by 2013
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