From Reuters:
http://uk.reuters.com/article/americasRegulatoryNes/idUKN0546003320090505
Excerpts follow:
BERNANKE ON INFLATION RISKS "I just want to assure the American people that we are very focused, like a laser beam if I may, on this issue of making sure we have price stability in the medium term and that we are working very hard to make sure that, while on the one hand, it's very important for us to provide a lot of support for this economy right now because it needs support...at the same time we understand the necessity of winding this down in a orderly
way at the appropriate moment so we will not have an inflation problem on the other side."
BERNANKE OF SAFETY OF FED LENDING "I'd first like to draw a very strong distinction between fiscal spending and the Fed's lending programs. Our lending programs are just that. They're lending programs, and with the exception of some of the things involved with AIG and that kind of thing, which is less than 5 percent of our balance sheet, the whole bulk of all those programs are very safe. They will be repaid with interest. We are making money for the Treasury. "There's a difference between spending money and lending it out and getting it back with interest."
BERNANKE ON CAPITAL RAISING, IMF LOSS ESTIMATES "To the extent that there are banks that need capital, our hope is that many of them will be able to raise that capital through either private equity offers or through conversions and exchanges of existing liabilities to strengthen their capital bases. So, I would say that (IMF) number overestimates the call
on the government going forward. "I've looked at many of the banks and I believe that many of them will be able to meet their capital needs without further government capital through either issuance of new capital, or through conversions and exchanges, or through sale
of assets and other measures that would raise capital."
BERNANKE ON ECONOMIC OUTLOOK "We are hopeful that the very sharp decline we saw even last fall and early this year will moderate considerably in the near term and we'll see positive growth by the end of the year."
Commentary:
My vote for most prominent public figure that makes me laugh at the nonsense that comes out of his mouth is... Ben Bernanke!
"we are very focused, like a laser beam" - That's right, first you shoot the economy with the laser beam of artificially low interest rates that blows it up and make it pop, and then use the same weapon to fix your own mess! Ha Ha, it would be funny if the consequences weren't so serious. Oh, and don't worry about that "inflation problem" we will take care of that too.
"We are going to make money for the Treasury" - How? By taking toxic crap assets on the balance sheet and massively inflating the Fed Balance sheet? These assets are going to make money - sure they are!
Oh, and that miserable old IMF doesn't know what it is talking about, so don't worry about it, just think happy thoughts, that will pay the bills.
"We are hopeful" - At last some honesty. Translation: We really don't know what we are doing, but we are hopeful that by interfering with the economy with low interest rates and debasing our US dollar and derailing the restructuring of the economy that is necessary for slow, healthly growth, that the good old days will come back.
Why don't I feel better about Big Ben always being on duty?
http://uk.reuters.com/article/americasRegulatoryNes/idUKN0546003320090505
Excerpts follow:
BERNANKE ON INFLATION RISKS "I just want to assure the American people that we are very focused, like a laser beam if I may, on this issue of making sure we have price stability in the medium term and that we are working very hard to make sure that, while on the one hand, it's very important for us to provide a lot of support for this economy right now because it needs support...at the same time we understand the necessity of winding this down in a orderly
way at the appropriate moment so we will not have an inflation problem on the other side."
BERNANKE OF SAFETY OF FED LENDING "I'd first like to draw a very strong distinction between fiscal spending and the Fed's lending programs. Our lending programs are just that. They're lending programs, and with the exception of some of the things involved with AIG and that kind of thing, which is less than 5 percent of our balance sheet, the whole bulk of all those programs are very safe. They will be repaid with interest. We are making money for the Treasury. "There's a difference between spending money and lending it out and getting it back with interest."
BERNANKE ON CAPITAL RAISING, IMF LOSS ESTIMATES "To the extent that there are banks that need capital, our hope is that many of them will be able to raise that capital through either private equity offers or through conversions and exchanges of existing liabilities to strengthen their capital bases. So, I would say that (IMF) number overestimates the call
on the government going forward. "I've looked at many of the banks and I believe that many of them will be able to meet their capital needs without further government capital through either issuance of new capital, or through conversions and exchanges, or through sale
of assets and other measures that would raise capital."
BERNANKE ON ECONOMIC OUTLOOK "We are hopeful that the very sharp decline we saw even last fall and early this year will moderate considerably in the near term and we'll see positive growth by the end of the year."
Commentary:
My vote for most prominent public figure that makes me laugh at the nonsense that comes out of his mouth is... Ben Bernanke!
"we are very focused, like a laser beam" - That's right, first you shoot the economy with the laser beam of artificially low interest rates that blows it up and make it pop, and then use the same weapon to fix your own mess! Ha Ha, it would be funny if the consequences weren't so serious. Oh, and don't worry about that "inflation problem" we will take care of that too.
"We are going to make money for the Treasury" - How? By taking toxic crap assets on the balance sheet and massively inflating the Fed Balance sheet? These assets are going to make money - sure they are!
Oh, and that miserable old IMF doesn't know what it is talking about, so don't worry about it, just think happy thoughts, that will pay the bills.
"We are hopeful" - At last some honesty. Translation: We really don't know what we are doing, but we are hopeful that by interfering with the economy with low interest rates and debasing our US dollar and derailing the restructuring of the economy that is necessary for slow, healthly growth, that the good old days will come back.
Why don't I feel better about Big Ben always being on duty?
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