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Monday, November 23, 2009

Fed Chairman Bernanke's November 2009 Speech at the Economic Club of New York

Watch Federal Reserve Chairman Ben Bernanke's damning and dire economic forecast for our economy.

                                                       Watch here:

He is trying to put lipstick on our economic pig through his careful manipulation of facts. Here are a few quotes written by Mike Whitney in his article "The Great Stimulus Debate of '09: Crybabies need not apply", 11-20-09,

"The flow of credit remains constrained,economic activity weak, and unemployment much too big. Future setbacks are possible...How the economy will evolve in 2010 and beyond is less certain...Access to credit remains strained for borrowers who are particularly dependent on banks and businesses. Bank lending has contracted sharply in year, and the Federal Reserve's Senior Loan Officers Opinion Survey sows that banks continue to tighten the terms on which they extend credit for most kinds of loans...Household debt has declined in crecent quarters of the first time since 1951. For their part, most small businesses have seen their bank credit lines reduced or eliminated, or they have been able to obtain credit only on significantly many of these businesses expected conditions to tighten further."

"The demand for credit also has fallen significantly...Because of weakened balance sheets, fewer potential borrowers are creditworthy, even if they are willing to take on more more debt. Also, write-downs of bad debt show up on bank balance sheets as reductions in credit outstanding. Nevertheless, it appears that, since the outbreak of the financial crisis, banks have tightened lending standards by more than would have been predicted by the decline in economic activity alone...Unfortunately, reduced bank lending may well slow the recovery by damping consumer spending, especially, on durable goods, and by restricting the ability of some firms to finance their operations."

"The best thing we can say about the labor market right now is that it may be getting worse more slowly."(End)

Bernanke says how 9 of 10 of the mega-banks have been able to fully meet their capital buffers, and recapitalize without the help from the treasury. Their equity has increased by $77B. But he failed to say it has been at the expense of the real economy, and accomplished by taking taxpayer funds to gamble on Wall Street at zero percent interest and, thus, are now able to hand out billions in bonuses.

He said decreases in bank lending will reduce consumer spending and business cash flows. In other words, as a result of the Fed's policies, businesses are dying because the banks that were recapitalized by the taxpayer cannot obtain credit lines in order to make payroll, and buy material. And, as workers lose their jobs, or find their hours cut back, they must be very careful how they spend their precious dollars.

Stress tests will lead the 19 banks to become fully capitalized for future lending. What crap. They are not lending to make any real difference in the economy.

He encourages banks to work with borrowers to restructure failing loans. So when do you think this will happen--Bennie?

He went on to say that over 8 million jobs have been lost in the private sector. He foresees declining work hours. He stated that the labor market will be getting worse, but more slowly. He went on to say that the "economic pain" among male workers between the ages of 25-54 are seeing their unemployment rate rise to 10.3%, and women in that age group to over 20.6%; Young people between the ages of 16-24 to be over 19%; and African-American youth to be 30%.

He said that weak income growth will decrease spending. Employers will shorten work weeks, and transition part-time workers to full-time workers before bringing on new hires. 100,000 new hires per month are needed in order to absorb new entrants into the labor force. Yet he failed to convey what has been predicted as a million and a half more workers finding themselves unemployed over the next 18 or so months.

He said that productivity growth is defined as output per hour of work and that productivity growth per hour has risen at around 5% annual rate this year. This is such crap!!! He failed to say that this growth rate has been mostly due to his Fed fund rates of zero percent interest to the top 10 bankstas so they could increase profits through their speculation and manipulation of Wall Street trades. Lipstick on a Pig, Bennie-the beard--Bernanke, Mr. Bank Crime Syndicate Field Marshall!

He careened against workers by saying that increasing productivity is what is left to improve business. So Bada Bing Bernanke, how will this be done without having to squeeze more juice from the already squeezed out worker? I guess, your double speak, between-the-lines gobbligook talk infers that more outsourcing, more cheap labor from China, Vietnam or Philippines is the way to increase business productivity.

It was truly clear from listening to this weapon of mass destruction that he MUST be fired, and the Fed MUST be nationalized and made transparent. This one man has killed America through his policies authorized by the board of the Federal Reserve.

As he concluded, he had the balls to say that he did not see any major misalignments in the economy. Whaddayathinkindude? The real economy is in shambles. Jobs are disappearing. China is coming over here to build manufacturing facilities. The US is becoming a third world country in many ways. The quality of life is diminishing for tens of millions of Americans. You, Mr. Field Marshall for the Financial Crime Syndicate have recapitalized your pals to such a degree that they can pass out $23 billion in bonus Happy Cash Meals. People are living in tents, in storm sewers, in their vehicles. Food banks and soup kitchens don't have enough food to go around. China continues to show a rising budget surplus, while they keep their currency pegged to collapsing dollar allowing them to sell their stuff cheap in the US.

And you, you bearded wildebeest from the Greenspan School of Failed Policy Studies, don't see a misalignment. Are just f**king stupid or the world's most evil, lying economist on the planet?

thanks for reading, jerry