Is Benny Bernanke really Bernie Madoff?????
Bernie Madoff was like a AAA rated bond to his investors, paying 10% like clockwork for decades. If you couldn't trust Bernie, you couldn't trust anyone in the community. Anyone who questioned Bernie's integrity was put down immediately and marginalized. Bernie was the man and no one questioned it.....period......after all, it was only a very exclusive group of very intelligent and successful individuals who had the privelege to invest with him.
A primary role of the Fed is to maintain the soundness of the U.S. Dollar. The Dollar is a Federal Reserve Note guaranteed by the full faith and credit of The United States. Right on the back it states In God We Trust. If you can't trust God, who can you trust???
It has been the role of the Federal Reserve to make sure that trust is not broken, regardless what the propensities over government may be at the time. It is why the Fed has always been supposedly independent from the influences of elected government officials.
For decades, the world has trusted that the Fed would maintain a sound monetary policy. That it would not simply debase the currency to satisfy the spending nature of elected officials to satisfy their constituents. As many of us know, it is really easy to spend money, especially money we don't have or have not earned. For the dollar, it's soundness has been backed by the productivity of our nation.....and as productivity increased, so did the amount of dollars maintaining a sound and stable currency.
As a result of more or less responsible Fed behavior backed by a productive base second to none in the world, the dollar took on the role of the World's Primary Reserve Currency. Such a status provided incredible benefits to the American citizens. But it was only afforded because our central bank was responsible and the private sector was incredibly productive.
But over the last 15 years, much of our private sector has been driven by speculative bubbles. And those speculative bubbles drove tremendous tax revenues to the state backing and supporting the dollar. So instead of balancing the dollar against productivity, it became a reflection of how big a bubble the Fed could blow......in simple terms, the Fed became the world's biggest Bernie Maddoff but few believed it......until now.
Over recent years, our nations private sector could no longer function without borrowing trillions of dollars per year to create the illusion of productivity. Just go loan a few trillion dollar to a bunch of homeless people, just watch how sales explode around them.
As long as the Fed permitted the banks to lend, the private sector prospered. And boy did the Fed encourage lending, destroying safeguards implemented following The Great Depression allowing lending practices no sane banker would ever try without thinking that ending up behind bars would be the logical consequence.
Our economy became one big Ponzi scheme but few were willing to believe it....after all, it is America, the world's reserve currency, it's central bank would NEVER allow something do destructive to occur to the most powerful nation on earth.
The only way to keep the Ponzi Scheme under wraps was to keep lending to the private sector to continue driving tax revenues to a growing government to support the continued printing of money. If we couldn't produce anything, the only assets left that you could convince people to borrow trillions against was Real Estate....and my what a bubbble we blew.
Once it got so big that revenues could no longer sustain debt service, everything started to collapse. INCLUDING TAX REVENUES TO A GOVERNMENT SUPER SIZED to a PONZI LEVEL of business......
Now that tax revenues have collapsed, the issue is whether Benny B is acting just like Bernie Madoff???? Simply printing money backed by the illusion of productivity. At this point, the U.S. must borrow about $50 Billion per week simply to sustain its size......as the economy contracts further, that number will likely increase to $100 Billion.....an unsustainable number for the World's Rerserve Currency.
Pretty soon, if we keep going down this path, foreigners will simply say no mas or else run out of money to maintain our Central Bank's insatiable and GROWING appetite for money. The Ponzie scheme will fall apart and the dollar will collapse.
If the dollar collapses, the Republic is broke and so is all of its citizens. The Republic must function and it will be forced to take whatever of value you have simply to maintain its existence.
For years, the United States and the dollar for years has been the place to park your money.....this was based on trust that the Federal Rerserve would act responsibly.......just like Bernie Madoff's clients trusted Bernie.........
This time the stakes are much higher than simply tens of Billions of Dollars.....the stakes are the solvency of the United States of America and whether its people are willing to adapt to change.
So if you were Benny B, and the world was about to find out you were running the world's biggest Ponzie Scheme, would you allow yourself to get caught......or would you start a major war to to threaten and distract the world from your behavior.....after all, it would not be your kids fighting in the war!!!!!!
If Bernie Madoff had the same power of Benny B, do you think he would have started a war using other's kids to keep himself out of jail? Welcome to the world when sociopaths meet with perceived absolute power......very distressing consquences can occur.....usually impacting the innocent.