How best to describe what is happening now?
Where are the words when bureaucrats go
mad, trying to convince the world that 2 + 2 = 5 as they advocate the
equivalent of financial suicide?
Sometimes it takes a song. The tune that comes to mind is "We Can't Make It Here Anymore" by James McMurtry:
Will work for food, will die for oil
Will kill for power, and to us the spoils
The billionaires get to pay less tax
The working poor get to fall through the cracks...
So let 'em eat jellybeans, let 'em eat cake
Let 'em eat s—t, whatever it takes
They can join the Air Force, or join the Corps
If they can't make it here any more...
America the beautiful, America the broke. The Federal Reserve could hardly devise a more effective plan to kill the country if it tried.
In its bid to fight deflation, Ben Bernanke
is putting a knife into the heart of the poor, the middle class, and
anyone else who spends a meaningful portion of their take-home pay
(assuming they have a job) on things like food, groceries and gasoline.
Worse still, this is all being done in the service of a lie that no one believes.
In a rare op-ed piece, published in The Washington Post, Mr. Bernanke wrote the following in justification of his actions:
The Federal Reserve's objectives -- its dual mandate, set by Congress -- are to promote a high level of employment and low, stable inflation.
Unfortunately, the job market remains quite weak; the national unemployment rate
is nearly 10 percent, a large number of people can find only part-time
work, and a substantial fraction of the unemployed have been out of
work six months or longer...
First off, how in the world is the Fed
supposed to promote "a high level of employment?" And what have they
done to pursue this objective in the past?
Perhaps Alan Greenspan pursued his "full employment"
mandate by ginning up millions of extra real estate brokers and
construction workers by way of the housing bubble. Perhaps Mr. Bernanke
is following a similar "full employment" strategy for the gold and
silver and copper mines. In respect to "low, stable inflation" --
and, amusingly enough, low inflation is what the Fed claims we still
have -- isn't it about time we stopped believing lies so bold they can
barely be communicated with a straight face?
It is true that we do not have the generalized sort of inflation that comes with rising wages and economic activity.
But what we do have is a doggedly stupid
Federal Reserve -- one that somehow believes oil at $120 a barrel
alongside unemployment at 10% is a good thing for the U.S. economy.
The good news is, at the current pace,
the Federal Reserve is going to destroy itself. The main question is
whether or not it destroys the country first.
In their mandate to save the megabanks
and the financier class, and to juice paper asset prices come hell or
high water, Bernanke and co. are ready and willing to crush middle
America -- and small-business America -- into powder. Their secret
recipe provides for something between inflationary recession and
And to provide cover in doing this, they
are willing to tell lies to the public so brazen, and so repetitive, as
to rival the brainwashing propaganda of the old Soviet Union, or perhaps the Ministry of Truth in Orwell's 1984.
"Today, most measures of underlying
inflation are running somewhat below 2 percent," wrote Mr. Bernanke on
Thursday. What a fantastic statement, with copper and gold both up more
than 3% on the very same day.
Bernanke is like a man standing in front of a raging forest fire: "There is no smoke. There are no flames."
Even as the hollow men send paper asset
prices soaring with their right hand, they throttle true economic
recovery with their left. Part of the reason the real U.S. economy is
so weak -- and why unemployment is so high -- is because America's
blood and treasure was consumed by government-sponsored Ponzi schemes and Wall Street
bailout orgies in the first place. The country's economic heritage was
raped, then pillaged... and is now being raped and pillaged again.
Ignorance and cowardice are killing us
now. The survivors are the ones who will take refuge, sheltering from
dollar debasement strategies in high-quality hard assets and other
vehicles with a Fed-protective element.
As for the survival of the country, or at
least our understanding of America as we used to know it, that is
another question. One must wonder, can the insanity still be purged from
the system? Or has the system become insanity itself?
Which will go down first -- the Fed, or the country? At what point will there be riots? At what point will there be violence?