Bernanke: The Star of an R-Rate Snuff Film

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Bryon King sends us this note:

“While Ms. H. Rodham-Clinton and Mr. B. (No Middle Name) Obama battle out over who will be the Democratic Party nominee for U.S. president, there is another Great Smack-down occurring within American politics.

“This other match – a true eye-gouging, ear-biting cage-match by any standards – may well determine the success or failure of the next U.S. president, no matter who is elected next November. (Presumptive Republican nominee John McCain has admitted one of his own limitations, ‘I don’t know as much about economics as I should.’ He gets points for honesty, if not candor.) And this other knock-down, drag-out competition is taking place within the marbled hallways of a certain institution located prominently on Constitution Avenue in Washington, DC, just across from the Lincoln Memorial.

“It appears that a certain Mr. Richard Fisher, of Dallas, Texas (and by occupation, president of the Dallas Federal Reserve Branch) is lobbying for the job of ‘Successor to Ben Bernanke.’ That is, Mr. Fisher wants to be the next Chairman of the U.S. Federal Reserve.

“The current course of U.S. monetary policy is not sustainable. The Bernanke monetary policy is wrecking the value of the U.S. dollar. The charts don’t lie. Inflation is rising. The prices for gold and silver are soaring, as is the price of oil. The dollar is at historic lows against the euro, as well as numerous other world currencies. U.S. import costs are exploding. And despite his academic credentials as a historian of the 1929 crash and Great Depression of the 1930s, Bernanke is simply in over his head.

“We may be witnessing some macabre and tragic drama scripted by the gods. And in this play, it may be the unpleasant role of Mr. Bernanke to lower interest rates to the point where he must take the sword. Bernanke may or may not understand that he is the star of the R-rated version of a snuff film. Bernanke’s sad destiny is – paraphrasing the words of Gen. George Patton here – to grease the treads of someone’s tank. The best that Bernanke can hope for is a relatively dignified and hasty departure from the Fed, with perhaps a final limo ride in which he is not garroted like in the chilling scene that occurs at the end of The Godfather.

“No matter what, and in the best of possible outcomes, Mr. Bernanke will not escape the Circus-Circus atmosphere of a summary dismissal from his current job. His trip to the unemployment lines will be heralded by calls from Congress for his removal, if not his head.

“This is all another way of saying that over the long term the world’s bond markets cannot afford – and will not tolerate – the current sordid state of monetary affairs. Bernanke is costing a lot of people a lot of money. He is bad for business. And so Bernanke as Fed Chairman cannot last much longer. He is going to go, sooner or later. Probably sooner.

“It is the nature of the position of ‘America’s Central Banker’ that someone will have to take Bernanke’s place. At 81 years of age, Paul Volker is probably too old to retake the job he held from 1979 to 1987. And Volker may not be ready for a replay of his previous efforts, marked by angry mobs burning his figure in effigy. (And second acts do not play well in Washington D.C. Look what happened to Donald Rumsfeld during his rerun at the Department of Defence.) So someone will have to step up to the plate, take the seat as Fed Chairman and start pulling triggers. Someone will have to call a halt to the serial interest rate reductions that have occurred on Bernanke’s watch. Someone, in fact, will have to raise interest rates and squeeze the monetary poison out of the U.S. economy – and by extension the connected world markets.

“Someone will have to administer the medicine that both the United States and the world requires. Someone will have to do the dirty work. Someone will have to take the hit – ‘for the team,’ as they say down at the football pitch. Richard Fisher appears to be volunteering for the job. Good luck, Mr. Banker-Man. You are going to need it. Really. You are going to need a lot of luck.”

Bill Bonner
The Daily Reckoning Australia

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Bill Bonner

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Comments

  1. As noted above: “The current course of U.S. monetary policy is not sustainable. The Bernanke monetary policy is wrecking the value of the U.S. dollar…….and despite his academic credentials as a historian of the 1929 crash and Great Depression of the 1930s, Bernanke is simply in over his head.”

    Alas I fear this is true (Ben is in over his head) and also not true in the sense that what Bernanke is doing does appear to be what he was hired to do. You could perhaps say Ben was ‘over his head’ if Bernanke and/or this administration actually wished to save the dollar and the economy; I hate to mention the elephant in the room but clearly they do not wish it and their actions prove it; NO ONE is THAT stupid,i.e. look at the numbers/indicators in every direction; in a recent interview Bernanke admitted monetary inflation caused price inflation then stated the Fed’s job was to stabalize prices (!).

    Bernanke, is representing -wittingly or unwittingly- the neoconservative ambition to destroy the dollar completely in order to establish their audacious and rather sickening notion of creating a North American Union combining Mexico, the U.S. and Canada as essentially a single entity with a common currency (the ‘Amero’) crisscrossed with NAFTA Superhighways, subject to the ‘laws of commerce’ which supercede all other laws (read the agreement -http://www.judicialwatch.org/5979.shtml), furthering the transnationals lust for globalization, a broken middle class and virtual slave labor.

    It has been noted that if Bernanke knew what he was doing he would never have taken the job in the first place. In my opinion he’s been staked out like a sacrificial lamb to take the heat for Greenspan and the whole neoconservative agenda regarding the economy. They knew exactly how Bernanke would respond to the conditions they have created because he made his opinions quite clear within his academic musings.

    If the destruction of the currency is, as it appears to be, quite deliberate, Bernanke will possibly not be replaced….unless of course he becomes such an embarrassment (and, yes, that is happening)and exposes too much about the deliberate intentions of his bosses. They may have to bring in another idiot to placate investors while the economy continues its death spiral. I believe we passed the point of no return economically last year. I don’t believe anything or anyone can stop what’s coming now. It does appear however the neocons have unleashed something they cannot control; money and markets have minds of their own. Since we have never seen anything like this in the history of the world, I have no idea exactly how this will all play out but the future looks very grim at the moment.

    Someone once said, “I would suggest you fasten your seat belt but considering the fall we’re going to take it won’t really make any difference”. However, I do not believe we should find it necessary to blame any of this upon the gods; we can place the responsibility exactly where it belongs; predictable human greed and lust for power running rampant due to a tremendous failure of citizenship. This is the result of having an ignorant, propagadized and gullible public that does not understand the first thing about economics and is therefore unfit to vote for anyone; it was ever thus and people never, and I mean NEVER, seem to learn……bw

    Billie Wolf
    March 13, 2008
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  2. I totally agree with BW. Whose interest is served by destroying the financial system? I’d love to learn who REALLY owns the Federal Reserve and the Bank of England…not the banks….not the trusts and so on behind that, but the people… the individuals who can run a world on an illusion of debt…so called ‘money’. Not only do these people strangle the creative potential of humanity they bond our fellow citizens (who don’t get the con) in debt-slavery.
    I wonder if Colonel Jackson will be waiting at the Gates of Heaven for Greenspan and Benacke who have destroyed America, in collusion with others…but then, perhaps they’ll be going elsewhere…

    nic meredith
    March 13, 2008
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  3. Note to nic meredith……if you research the links provided when you google “Trilateral Commission”, “Bilderberg Group”,”Council on Foreign Relations”, “Leo Strauss”, “neocons” (neoconservatives)and the “Project for the New American Century” you will find many names, most of them quite familiar. You have to sort through a great deal of dreck I’m afraid but you can find serious documented evidence providing a trail to many of the actual people who orchestrate world politics and economics.

    Despite the eternal corruption of politics and money we have simply never seen corruption on this level. Although there are multiple examples of various people putting their heads together (the hoary ‘conspiracy’ theories…..which reminds me of the old saw, “…..just because you’re paranoind, doesn’t meant they are not after you…..” are quite real. Moreover I believe we have the element of a large group of sharks smelling blood in the water; these people seem to encourage each other to new levels of debauchery.

    Personally I observe the universal moral law of cause and effect. Essentially if you go around the village beating everyone up and taking their things, sooner or later someone or some group is going to clean your clock; that’s the LAW. I think the neoncons, financial industry honchos and transnationals are gazing into the abyss of some fairly ghastly karma; I hope I live long enough to see the payback……. Good luck………bw

    Billie Wolf
    March 14, 2008
    Reply
  4. brilliant. well said.

    very nicely done. however, wearing a seat belt firmly anchors you to a rigid body. :) which is like an anvil wrapped by a parachute. also, cause and effect is a nice safety blanket, but at the end of the day, David Hume was right.

    Reply

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