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The Bernanke Effect

Articles & Blogs - Gold Commentary

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With the precious metals sector having been in the grip of another bankster-induced “silly season”, I was very unsure about how the market would “react” to the latest shenanigans of B.S. Bernanke. Put another way, I was uncertain as to whether the actual fundamentals would be allowed to assert themselves – even to a small degree.

In fact that is precisely what we have seen: a “small” reaction to yet more monetary insanity. As I have written previously, the U.S.’s 0% interest rates are the economic equivalent of hooking someone up to a defibrillator. Shock someone continuously with a defibrillator for 3+ years, and it is safe to say that we will not end up with a “patient in recovery” – but merely with a badly-charred corpse.

Thus it is with the U.S. economy. Three-plus years of continuous, maximum stimulus has produced nothing except a steady stream of ever more-absurd statistical lies, attempting to delude the sheep into believing this badly-charred corpse is “recovering”. Are the Wall Street market-pumpers who reside at the Federal Reserve ready to admit defeat?

Hardly. Instead these banker voodoo-shamans continue to artificially animate the zombie-banks more commonly known as “Wall Street”: their primary raison d’etre. B.S. Bernanke has announced that 0% interest rates – i.e. the economic defibrillator – will remain cranked up to its maximum setting for at least three more years. As these morally- and intellectually-bankrupt servants of the Financial Oligarchs recklessly cater exclusively to the whims of their masters, they remain either oblivious or simply indifferent to the economic carnage they are inflicting on the U.S. economy, and the global economy as a whole.

Sadly, that carnage has just barely begun to manifest itself. The fraud-saturated graveyard that is the U.S. housing market is yet another place where throngs of “zombies” reside. In this case it is millions of zombie-mortgages: already underwater, and with U.S. housing prices destined to keep falling for as far as one can see into the future. Here the walking-dead can only be ‘resurrected’ through massive principal-reductions. However, since that would push the Wall Street zombies much closer to their own annihilation, such relief is denied to the holders of the zombie-mortgages.

Savers are also being slaughtered with apparent zeal by the Federal Reserve shamans. As the U.S. population ages, and becomes more dependent on personal savings to fuel this consumer economy, the massive wealth-drain being inflicted on this ever-growing demographic through massively negative “real” interest rates ensures there is no future for this zombie economy – other than burial, followed by (eventual) re-birth.

Stripped of their savings, the greying U.S. population has no recourse but to fall back on (supposed) entitlement programs: the U.S. “social safety-net”. Pathetically, the American population remains almost entirely oblivious to the fact that this safety-net is entirely illusory.

The Social Security system is supposed to be “backed” by what is hilariously described as a “trust fund”. It has been gutted by successive regimes of the two-party dictatorship: one-party steals, while the other accomplice remains silent.

The situation is even worse with respect to the health-care system which purportedly safeguards the health of Americans. It was never fully-funded. Now, as the $trillions in “unfunded liabilities” become $10’s of trillions, and now somewhere approaching $100 trillion, all that remains to be decided is when this benefits-bubble “pops” (and then vanishes completely).

Equally, the Federal Reserve shamans (and the Wall Street Vampires) recklessly inflict their economic mayhem on the global economy. Relentless Fed money-printing ignites one commodity-rally after another. Concurrently, the extreme shorting by Wall Street stomps these commodity-markets again and again – trying to hide the hyperinflation suicide rapidly approaching.

As I have explained in many previous commentaries, such predatory shorting has catastrophic long-term consequences: the destruction of inventories – across the entire global commodities complex. While debauched currencies provide ever-lower real income to commodity-producers, Wall Street’s price –suppression depresses these revenues much further. The inevitable result is that artificially low prices stimulate demand while simultaneously drastically curtailing supply.

The only possible long-term consequence is inventory default in one commodity market after another, followed immediately by dizzying price-explosions – and chaotic rioting, as nearly non-existent supplies and sky-high prices inflict global economic hardship which few can yet envisage in their worst nightmares.

It is with this context in mind that we can now analyze B.S. Bernanke and his no-win conundrum. With interest rates already permanently set to zero, the principal “tool” of these monetary assassins is already permanently lost to them. This leaves Bernanke and his junior-shamans with only two other devices left to them to cause further economic chaos: one real, one merely virtual.

As has been iterated by many other commentators, the Fed now can only “move markets” (brute-force style) through announcing yet more totally unprecedented and extravagant money-printing. However, with the Fed shamans having already over-used (i.e. abused) this device, the specter of hyperinflation now hovers above the heads of these witch-doctors like the Sword of Damocles.

How terrified are B.S. Bernanke and his brethren of this dire blade? Frightened enough to have reverted to secretly printing-up their $trillions – or as I described previously, the U.S. economy is now being “funded” by (fraudulently) counterfeited U.S. dollars. And so we arrive at the Fed’s latest announcement.

With real implements of mass (financial) destruction now denied to them, B.S. Bernanke and his henchmen are reduced to “jawboning”: the last refuge of failed monetary policy. Thus we have a promise of three more years of 0% economic suicide. All the energy left in this decaying corpse goes into creating the illusion of life – leaving no time/effort/energy being directed into a future economic re-birth (after the Wall Street Vampires have reduced the U.S. economy to rubble).

And so we see the response of not only precious metals, but virtually the entire spectrum of commodities. Permanently gone is any more (absurd) pretense of an “exit strategy” for the Federal Reserve. With B.S. Bernanke forced to abandon that myth, yet another small segment of market participants have now permanently removed their blinders and now see the Fed shamans for what they really are…or at least nearly so.

Remarkably, even many of the more astute commentators continue to ‘soil’ their otherwise useful analyses by diluting them with “official statistics” – i.e. the legion of numerical fantasies which the U.S. government (and other Western regimes) have inflicted upon us. Viewing Bernanke’s latest announcement through the prism of a (supposed) inflation-rate of under 5% - while in the real world it rages in double-digits – inevitably means that the reaction we have seen to his latest jawboning can only be described as “extremely muted”.

Thus we see the no-win conundrum of these suicidal banksters crystallizing. Cease “shocking” the U.S. economy with 0% interest rates and the entire, fraudulent spectrum of Wall Street Ponzi-schemes come crashing down. Continue this monetary madness, and the U.S. economy chars – as the sadistic Bernanke ‘juices’ this lifeless corpse again and again.

Similarly, if the Wall Street Vampires ease up on their predatory shorting, the true economic fundamentals (i.e. massive upward pressure on prices) will materialize and real “inflation” will begin to assert itself – via a barrage of triple-digit increases in prices. In turn, this becomes the likely trigger of a hyperinflation spiral. The Sword of Damocles comes whistling downward, simultaneously beheading Fed shaman and Wall Street Vampire alike – as hyperinflation takes their empire of paper-fraud to zero.

Conversely, if the Vampires continue their assaults on commodities, upward price pressures only intensify from relentless inventory destruction. The restraints holding back the Sword of Damocles become ever more-dangerously strained.

There is nothing deeper in this analysis than simple cause-and-effect. All Ponzi-schemes are doomed to fail from their inception; all frauds destined to be exposed. The (serial) economic rape perpetrated by the banksters down through history fortunately has a limited “shelf life”. We now see the end of this era of bankster paper-fraud approaching, just as all previous incarnations have self-destructed before this.

B.S. Bernanke can huff-and-puff with his jawboning until he is literally blue in the face. His fate (and that of his Masters) is sealed, like some gruesome Greek tragedy. The Sword of Damocles hovers, its blade sharp, its aim true.

Comments (4)Add Comment
Jeff Nielson
written by Jeff Nielson, February 06, 2012
Why just pick on Bernanke? The list of all Fed Chairmen is replete with serial psychopaths, including Greenspan, the most destructive. But then again, they all have taken their orders very well, haven't they? The question really remains as to the real power behind the throne. Is it really the NYFed from whence Geithner was afterbirthed? The ESF, the super secret power with no accountability whatsoever, or the equally unaccountable (with diplomatic immunity no less) BIS? Or is it some well guarded Rothschild descendant within the City of London.

No matter; it is now obvious that all these economic machinations are directed towards totalitarian control, with economic serfdom for the 99%.

So Jeff: it's not economic idiocy or coincidental AFU mistakes; it's all been incrementally planned. BTW, I would prefer the guillotine, but the Sword of Damocles is a good one.

Yes, Apberusdisvet, it's important to stay focused on the long-term "big picture". In that respect, the real "Power behind the Throne" is the shadowy "Pilgrims" (of Charles Savoie's "The Silver Stealers"). Indeed, we could forget about the label of "Pilgrims" and simply stick with the more generic title of silver-stealers: that's what they do - steal our silver, and replace it with their (worthless) paper...
Jeff Nielson
written by Jeff Nielson, February 06, 2012
what event would prevent BS Bernanke from building the Feds 'balance sheet' toward infinity? As long as he is able to retain 'confidence'...he could keep the game in play for an extended period of time.

Stephanusii, that is the dream of ALL Ponzo-scheme operators: that they can CONTINUE to inject larger and larger piles of CASH into their fraud. There are MANY problems with this pipe-dream, but the biggest is there is no CASH to feed into the fraud any longer.

So the Ponzi-scheme(s) is being propped-up with ever larger injections of DEBT into the system. With economies which are ALREADY insolvent, adding debt simply means watching one "Greece" after another unfold - and ultimately seeing them ALL go down like a row of dominoes.

The problem here (for us) is NOT that the fraud can be maintained indefinitely. Rather, our problem is the fact that these psychopaths are in the process of creating an horrendous financial implosion in TRYING to sustain their frauds indefinitely.
written by apberusdisvet, February 05, 2012
Why just pick on Bernanke? The list of all Fed Chairmen is replete with serial psychopaths, including Greenspan, the most destructive. But then again, they all have taken their orders very well, haven't they? The question really remains as to the real power behind the throne. Is it really the NYFed from whence Geithner was afterbirthed? The ESF, the super secret power with no accountability whatsoever, or the equally unaccountable (with diplomatic immunity no less) BIS? Or is it some well guarded Rothschild descendant within the City of London.

No matter; it is now obvious that all these economic machinations are directed towards totalitarian control, with economic serfdom for the 99%.

So Jeff: it's not economic idiocy or coincidental AFU mistakes; it's all been incrementally planned. BTW, I would prefer the guillotine, but the Sword of Damocles is a good one.
written by Stephanusii, February 05, 2012
what event would prevent BS Bernanke from building the Feds 'balance sheet' toward infinity? As long as he is able to retain 'confidence'...he could keep the game in play for an extended period of time.

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