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Bernanke Will Bail in February

Written by Gary North on March 21, 2013

Bernanke is hinting that he may not accept another term as Chairman of the Board of Governors.

My prediction: he will decline the nomination. Why? Because his policies have lit the fuse on the dynamite of mass inflation.

The FED cannot sell the $2 trillion in government debt that it bought. The monetary base sits there, like a room filled with explosives. A recovery will light the fuse.

He is a Keynesian. So, he does not understand economic cause and effect. He believes in free lunches. He believes that federal debt is good. He thinks that digits create wealth. But he can see that the FED is trapped. It cannot unwind without causing a depression. Not a recession — a depression.

So, if he leaves in February, when his term is up, he passes on the Old Maid to his successor — the way Greenspan passed it on to him.

He will quit. He will abandon ship. He will escape blame. His successor will take the hit.

Why would anyone accept the slot? Because Keynesians think that kick the can will work for another four years.

Some men seek fame. Economists can rarely get fame. But being the FED Chairman makes you famous. Some dolt will accept the position.

I hope it’s Janet Yellin. She deserves what will happen to her. She has been a yes-woman for Bernanke.

Of course, Paul Krugman would be best. But he is literally terrified of hard questioning. Whoever gets to be the next FED Chair will be questioned harder than any FED Chair in history.

Continue Reading on www.bloomberg.com

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8 thoughts on “Bernanke Will Bail in February

  1. Big Ben is taking $45 billion per month of our grandchildren's money to give to the Banksters in exchange for useless mortgage backed securities to cover the Banksters bad investments. Doesn't anyone think this is a bad idea ?

  2. Bill McCroskey says:

    I would love to comment what should be done to Bernanke and his 'bankster' cohorts. I can't for reasons that could lead to my incarceration. Let's just say it has been done to other government protected 'thieves' by patriots in other countries over the years.

  3. Fair Warning says:

    Tis not a pretty sight.

  4. Navigator30 says:

    Jim 213-I wonder how many NINJA loans and Liars Loans are embedded in that $45Billion per month that the Federal Reserve is taking in. Something tells me that if anyone is brave enough to buy them when the Feds are ready to sell that it will be at a substantial discount.

  5. Yes he is jumping ship he did his part to distroy us We need to close them down everything in the goverment start all over put new ones in the white house and start all over go only by the constition put the feds out for good let the states take over to much coruption

  6. That's 11 months away. A lot can happen in 11 months–if he's thinking about finishing out his term, he may be counting his chickens.

  7. the actual sum is 85 billion a month total. 45 billion for bonds and 40 billion for toxic mortgages.

  8. Why cant anyone who saves and has some money get any interest on ? Thanks to Ah Ah Ben.