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Could Helicopter Ben Be Losing His Faith?

Articles & Blogs - US Commentary

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There can be no doubt that the B.S. Bernanke floundering for ideas in September 2011 is a far different creature than the High Priest of Keynesian economics who assumed the position of Chairman of the Federal Reserve in February, 2006.

That “B.S. Bernanke” was a supremely confident zealot of his faith. “I have a Printing Press,” he would proclaim to the world (at 30 second intervals), “And with this Printing Press I have the power to create Inflation at my command. And, lo and behold, with this Inflation I can destroy the value of any/every currency – and thus prevent Satan from afflicting us with his Depression.”

High Priest Bernanke was unflinching in his faith, and when a mere two years into his tenure he (and his predecessor) had led (misled?) the U.S. economy to the brink of an unprecedented economic collapse, the High Priest demonstrated he would not hesitate to use his mighty Printing Press.

Again and again and again, Bernanke’s Printing Press barfed billions of U.S. dollars into the U.S. (and global economy). And the High Priest proved that he was correct (or at least partially correct) with his previous proclamations. B.S. Bernanke could (and did) create Inflation, usurping more and more of the dwindling value of the U.S. dollar with each fresh round of money-printing. His ability to create Inflation was unquestioned.

Confronted with his own past “successes”, we are left with many obvious questions. Why is High Priest Bernanke no longer willing to use his Printing Press at any and every opportunity? Has the High Priest simply lost his “faith”?

Today, B.S. Bernanke confronts the same “demon” which has sapped the faith of countless zealots before him. His previous “blind faith” in Keynes and the Power of the Printing Press has given way to doubt. This can be obviously demonstrated simply by reading the media’s script for the current meeting of the Federal Reserve. Hopes for a new infusion of money-printing are being squelched.

What “action” can we expect from the High Priest and his minions now that use of the Printing Press is apparently forbidden? We are told to pin our hopes on the euphemism dubbed “Operation Twist”. Does this involve some new “secret weapon” – similar in power to the mighty Printing Press itself?

Hardly. Operation Twist is nothing but a monetary band-aid aimed at temporarily reducing interest rates on U.S. 10-year Treasuries. Are the current rates on U.S. 10-year Treasuries at historic highs? No, current rates are already the lowest (and most reckless) in history. Is anyone suggesting that a tiny reduction in the interest rates on 10-year Treasuries will do anything to stimulate the U.S. economy? No. Then why is this what is being “predicted”? Because B.S. Bernanke needs to pretend to be doing something – now that his omnipotent Printing Press has (seemingly) lost its potency.

How could the High Priest have ever arrived at this juncture? Why has B.S. Bernanke apparently lost his faith?

Today (belatedly) the High Priest is finally re-examining his own dogma. Specifically, he (and many other Keynesian zealots) are being forced to confront the failure of that dogma. Not only did Bernanke use his mighty Printing Press, but he used it to an excessive degree never before contemplated in history. And still his Printing Press has failed him.

The High Priest, unwillingly, is being forced to question the blind assumption upon which his Keynesian dogma is based: that destroying the value of our currencies at an unprecedented rate will prevent an economic depression. Blind faith has given way to bewildered attempts at analysis.

Not having much practice with “analysis”, I can lend the High Priest some assistance here. In attempting to appraise the impact of a particular course of action, the easiest method of doing so is project such a course of action to its ultimate extreme. By magnifying the “effect” from our cause to its absolute maximum, we should get some “clue” as to whether (or not) we are on the right track.

In the case of destroying the value of our currencies, the “extreme” is simple: driving the value of our currencies all the way to zero. What happens then? What happens when an entire population discovers that the currency they use(d) for commerce is now worthless? Does this extreme course of action “prevent depression”?

Hardly. Indeed, it would literally be impossible to imagine a “trigger” for a worse depression than to rob an entire population of all of its purchasing power. This proposition is as self-evident as it is simple.

How could it be that High Priest Bernanke, all the other central bank Priests, and all the “experts” in the media failed to question an assumption which totally breaks down upon any serious analytical scrutiny? Blind faith.

While we have still been given no reason to question Bernanke’s “blindness”, his faith now appears to have deserted him. As a High Priest who no longer believes in his own “God” (John Maynard Keynes), we are left with an even more fundamental question for B.S. Bernanke: how can he choose to continue to occupy his position as High Priest of Keynesianism when he no longer believes in the dogma of his own religion?

There is an alternate interpretation here. Specifically, it is not B.S. Bernanke who has lost his faith, but rather several of the other Priests at the Church of the Federal Reserve. Indeed, the media has been murmuring that the High Priest would like to use his mighty Printing Press one more time – out of habit, if nothing else – but it is the remaining cadre of Priests who have lost their “faith”.

As we await events to validate one possibility or another, a few unequivocal facts have emerged. Excessive use of the various printing presses of these monetary priests have only weakened our economies – not strengthened them. Apart from the Priests themselves, no one retains any faith in the Power of the Printing Press. And (last but not least) the Priests themselves have neither any other ideas nor any other options.

Comments (10)Add Comment
Jeff Nielson
written by Jeff Nielson, September 25, 2011
Lol Bobbbny!

written by bobbbny, September 24, 2011
How about "Blind sighted"?
What about "Bilderberg stooge"?
Could just be "Being stupid".
Anyway, heres my current analysis of the situation:
Jeff Nielson
written by Jeff Nielson, September 23, 2011
Apberusdisvet, I'm not one of those "New World Order" theorists. While I would not surprise if that "front" was being used in order to conscript a lot of lower level zealots, I see this as being nothing but humanity's oldest "war": class war.

It's the same thing we've had ever since we've had formal societies: those on top attempting to take EVERYTHING for themselves. All this fascist machinery is being put in place in a FUTILE attempt for those on top to go from 'only' holding 80% of all wealth to (at least) 90% of all wealth.

Their greed BLINDS them to the fact that NO culture/economy can EVER be stable with wealth skewed that radically - which is why we NEVER have stable economic and political systems (over the long term).
written by apberusdisvet, September 23, 2011
Good piece Jeff. You need, however, to explore the end game agenda of the elite Central Bank PhD puppets who use incremental smoke and mirror policies in an attempt to ensure the ultimate worldwide debt enslavement. The Eurozone mess is quite telling. It's possible that Bernanke et al may have reached too far. How many wars or "humanitarian interventions" will the American people support to serve the globalist asset stripping of sovereign nations? Will the American people finally recognize the growing police state that, already. has abrogated, almost totally, the Bill of Rights? Stay tuned; it is going to get interesting over the next 12 months.
Jeff Nielson
written by Jeff Nielson, September 23, 2011
hey Jeff, does BS in BS Bernanke stand for Ben Shalom or is there another meaning that is being alluded to ?

Samix, being a serious writer, it's VERY rare to get the opportunity to use a "double entendre" in your writing even OCCASIONALLY - let alone any time I get the urge (lol).

So when I discovered a few months ago that Bernanke's initials really were "B.S." I couldn't resist "mining" THAT gold!! smilies/grin.gifsmilies/grin.gif
Jeff Nielson
written by Jeff Nielson, September 23, 2011
Paxjds, the big PROBLEM with trying to introduce a "new currency" (i.e. another kind of worthless paper) is that there is a DOUBLE-RISK involved: not only might the people REJECT the new paper, but once they actually started THINKING about what they were holding in their wallets they might NEVER accept mere "paper" again...
Jeff Nielson
written by Jeff Nielson, September 23, 2011
Grumley, shame on you for trying to MAKE SENSE out of Operation Twist! smilies/angry.gifsmilies/angry.gif

How are they supposed to restore "confidence" for the sheep if you SCRUTINIZE exactly what they are doing?

If there is any "rationality" here it is that pushing down the LONG end of the "yield curve" is supposedly housing market-friendly AND supposedly more conducive to funding business (at reasonable rates).

Of course back in the real world the U.S. economy is MUCH too screwed up for such a TINY band-aid to have any impact.
written by samix, September 23, 2011
hey Jeff, does BS in BS Bernanke stand for Ben Shalom or is there another meaning that is being alluded to ?
written by paxjds, September 23, 2011
It is a little larger than what we are use to,and the glorious colors of red, white, and blue brings back stirring memories of Besty Ross. The whiteish picture of Fort Knox stirrs a fealing of serenity deep within my soul. On the flip side, a red, white, and blue flag firmly planted on the hallowed grounds of Arlington National Cemetary stirs my Patriotic heart palpations as no printing has ever done before.
Meaanwhile, over the TV came the prattling voice of B.S.Bernanke informing me that this new dollar bill was going to replace 3 of the old, greenish and inefficient dollar bills that I had used for my 50 years on this planet. And in his soft and disceiving voice, B.S. Bernanke said, " See, my printing press still works and I am giving you the most efficient dollar in the world. With this dollar, we will not need to run the printing presses again for perhaps 20 years or more. So be Happy with your new Americo dollar that has saved our Country from a bankrupcy attack from those Evil Creditors around the world that have been attacking us with all these lines of credit. Now since I have won this printing war against these Evil Creditors, I present my successor, Mr. Tim Geitner who will try to soften the Economic Shaft you have just recieved with this new Americo dollar. Mr. Geitner.....................
Let us not forget the next move in the High Priest Litiny of Mantras, When they wont let me print the currency anymore, Start printing a new currency to replace the existing one. And let us the public realize the BXLL SXIT, this new currency is just as worthless as the last green one, actually it is 3 times worse than the Last. And one thought the High Pries was out of Printing Press Bullits.
written by Grumley, September 21, 2011
Nice write up Jeff.

So is it just me or is anyone else puzzled by the logic of Operation Twist? After all buying $400 billion in long term bonds means selling $400 in short term bonds. And since the majority of government debt is held by foreigners in short term Treasuries, doesn't that mean short term yields will rise and make the financing of our national debt more expensive?

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