Chairman Bernanke Psychic? Predicts U.S. Economy Recovering
In a meeting held in Wyoming recently (not in a major metropolitan city, mind you, for reasons we can only guess), Federal Reserve Bank Chair Ben Bernanke put quite a creative spin on the U.S. economy and his predictions that the economic markets are stablizing from "the worst recession since the Great Depression" beginning its freefall last September-October coinicidentally just prior to the U.S. presidential elections.
This meeting was attended not simply by U.S. financial industry participants, but also global bankers throughout the world. Which only goes to prove just how much the U.S. economy now is enmeshed with that of other nations of the world, rather than domestically dependent on U.S. production and our own resources and assets.
I certainly would like to know just what crystal ball Mr. Bernanke is using, since last month was reported as the highest month in over a year for those now still losing their homes at over 300,000 more, and also with the highest unemployment rates since that Depression - since although Mr. Obama announced a 1% decrease in jobs lost and those on unemployment - what he failed to mention were the number of new small businesses that have gone under, or those Americans who are jobless still but whose benefits have run out.
And the bank bailout monies it appears are simply being used to satisfy those foreign investors by the branch banks of the Federal Reserve, and not at all as was publicly announced to help those Americans that are still at risk of losing theirs, after watching their property taxes, insurance rates and costs of ownership soar during the past several years of the boom - and with the overly restrictive and junk feed loans that were sold to most of those homeowners during the last ten year cycle in which fixed rate loans or assumables became almost as scarce as affordable gasoline.
In fact, while they are stalling on the processing supposedly of some of these applications, it appears they are merely collecting all those hidden junk fees prior to lowering the boom on those homeowners anyway.
After all, Bank of America issued a statement saying it had only helped about 4% of its loans that were determined "at risk" while continuing to collect those fees. Which is now owned by Merrill Lynch, a New York investment house who acted as agent on the resale of many of those bundled mortgages. Hmmm....sounds more like a pyramid scheme than any actual foreclosure rescue as these facts are coming out more and more.
Nor was any blame or apology set forth by the Fed, since this was a manipulated crisis after all. But much was said about how much the Fed has done in order to prop up the economy, including slashing interest rates to zero.
Big sacrifice, since those zero rate terms do not at all trickle down to the American consumers through their member branch banks at all. Some of those creative loans even sold by Fed branch banks, Freddie Mac and Fannie Mae were even based on London prime rates - not U.S. prime at all.
And since the Euro has been stronger than the dollar due to Fed manipulation, those interest rates skyrocketed. And those loans haven't changed in the slightest since the entire history and reason for this economic crisis was bypassed for the "quick fix" of inflicting instead more taxpayer debt for the Fed's eventual profit.
This performance sounded like such a spin, my head is still spinning just reading the details.
In fact, bank fees and charges have soared to the highest levels ever on overdrafts, ATM fees and transfers, even transfers within banks from one account to another - all of which are also profits of the Fed which are tacked on to those interest rates in the double digits for most credit card purchases and those usurous fees and charges.
Also reference was made to the outrage of the American people for being placed in the position of rescuing this "global market" that the American people had no voice or say in creating in the first place, and bailing out a global London based insurer, AIG, which to date has only accounted for less than 60 billion of the over 170 billion it received.
And one of whose Chief Executives sits on the Council for Foreign Relations in New York, home of the Fed, and is from Israel. I wonder just how much of those bailout monies were simply earmarked for foreign aid to Israel, since it does appear that of AIG's global offices, it was only the London office that was in poor financial shape due to lack of regulation in that country over its investment and insurance practices.
Mr. Bernanke's economic position may be improving, but did he actually look around Wyoming while he was there and speak to any of the locals after giving his speech?
He also mentioned the outrage of the American people in not allowing those banks and big businesses to simply fail. Really surprising considering that the banks are all subsidiaries of the Federal Reserve itself in one way or another through its branch banks - so since the Fed prints the money, and those banks have been making money hand over fist due to reselling most of those lower rate interest loans on the global market, and their increasing junk fees and costs, just how were they ever bankrupt to begin with? The spins and logic here is incredible.
Just why didn't they go through the formal bankruptcy process provided in the U.S. Constitution? That question also remains to be answered since the entire circumstances surrounding that bailout to most Americans is truly quite astounding in the Constitutional violations which occurred.
And just why were those insurers allowed to reinvest those premium payments in high risk investments over the stock exchange in other areas of the financial sector anyway? Did any of those global bankers pose any of these questions, since the American public are dying really to know the answers still to some of these questions.
Appears this speech was another public relations gesture, without much foundation in either truth, or evidence, at this point.
Maybe Mr. Bernanke was simply speaking of the Federal Reserve as a branch of the federal government as the true U.S. economy which is now rebounding.
And then some.
Tags: United States , Economy , Global , Market , Wall Street , Federal Reserve , Washington , Congress , Obama
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