Bernanke, a Wise Man, Creates Order Out of Chaos...
The meme of his ineffable wisdom is established yet again. What the free markets have undone, government can ravel.
This is the value of Ben Bernanke, a shill for Money Power. He is trotted out like the proverbial potted plant to make the right statist noises, to verbalize the statist nostrums that will then be elaborated upon by the manipulated media of the mainstream. The goal is to keep people believing in the system until world government is established.
It is becoming harder and harder, of course. The Internet Reformation carries on apace, informing people of the futility of government solutions to private problems. This is a tremendous problem for the power elite that is deathly afraid of losing its grip over central banking – the ability to print money from nothing to fund its various depredations, anything from "green growth" to serial wars and scarcity promotions (food, water, etc.)
This is the war in which Ben Bernanke has enlisted. It is his job to make people believe in government. Of course, it is never enunciated in this fashion. Bernanke is supposed to be a prime exponent of free markets and private sector competition. As usual, when it comes to the mainstream, Bernanke's actual function is entirely opposite to his REAL task.
You could see this building all week long. Warren Buffet, the Sage From Omaha, was busily at work suggesting that the rich close the US deficit with a one-time emergency tax. He even had numbers to prove it would work. Later in the week, he decided to invest US$5 billion in the Bank of America.
Buffet made a cool US$250 million in one day by buying into Bank of America and no doubt he stands to make more as the American economy (such as it is) struggles in its endless death throes. Buffet, too, is a wise man. He, too, is held up as an example of successful private enterprise when everything that Buffet suggests or participates in these days involves government of one sort or another.
The real point has to do with the continual establishment of wise men. This dominant social them is one of the biggest and most important of all the power elite's memes. The world needs to be run by a few good, gray men in expensive, understated suits. Ben Bernanke is the oracle of the day (and it is an oracular phenomenon) but there are others.
They are infinitely important and endlessly replaceable. What is important is the meme itself. These men are plucked from Harvard, Yale and MIT. They often undergo the transformative experience provided by Cecil Rhodes and his Rhodes Scholarships. They learn the lingo, come to understand the hot button issues. They are launched into society to save the world.
The most successful men are doubtless those who are able to lie to themselves the most effectively. One cannot be a successful liar if one does not BELIEVE. Bernanke is a true believer. How could he be anything else? He has spent his whole life in a made-up environment, reading fake economic literature and getting paid increasingly large amounts of money to regurgitate economic falsehoods.
Gold and silver, historically, are money. But Bernanke doesn't understand that. He doesn't know – or won't admit to knowing – the first thing about how money works. Gold and silver basically won the money competition, according to hard-money economist Murray Rothbard. But don't tell that to Bernanke. He thinks people value gold and silver because of "tradition."
There is a method to his madness. To admit that money is private product and that government has nothing to do with it would be to undermine the basic premise of the elite's Wise Leaders – that those with big degrees from top universities can handle the economy.
Bernanke, for instance, wrote his college thesis on how the Federal Reserve handled the Great Depression and what it could have done better. Turns out when Bernanke himself was tested he had the bright idea of printing TWENTY TRILLION DOLLARS to loan to his cronies at home and overseas.
Thus, we see the fruits of Real Wisdom. Print US$20 TRILLION, give it away to make sure the current insanity is properly leveraged and then explain to the world that you "saved the system." One is not supposed to ask, of course, whether the current system is worth saving.
In fact, the current system of "capitalism" is nothing but an aggressive form of mercantilism that uses the power of the state to prop up the privileges of a few. Everything about this system is established by government monopoly power, from the corporation itself (a judicial entity) to the paper money monopoly itself (implemented by government force). There is almost nothing about the system at a fundamental level that partakes of the free market.
So why should we expect Bernanke to suggest private solutions to public problems? The whole system is established to ensure that government remains an integral part of the economic process. Without government, the elites would lose control of the system they have established. And without government, there would be no fiat-style paper money. There would be, in fact, no money power.
Bernanke is going to do his best to make sure it never occurs. He will do this by emphasizing government's necessity at every turn. In yesterday's speech, he emphasized that it was government's responsibility to make sure people have jobs. Bernanke doesn't want any Greek-style riots in America and neither do his backers.
According to the Globe and Mail, Ben Bernanke made the case Friday for more fiscal stimulus, though "supporters of short-term government spending haven't been willing to push with force."
Fiscal stimulus is a gobbledygook term that means the government should spend money to "create" jobs. Government can do this by building roads, airports and other unnecessary items.
John Maynard Keynes, the British economist, was the one who came up with the idea of such government "pump priming." But Keynes advocated that government should save in the good times and spend in the bad times. The concept still doesn't make much sense, but Keynes wasn't interested in making sense, just in providing government with a rationale for existing and for acting in bad times.
Keynes justified his General Theory with loads of incomprehensible mathematical "proofs." Of course, free-market Austrian-type economists will point out that such econometrics has little to do with reality. Any time government sets out to create a policy that policy is doomed due to human action.
Misesian human action is a concept of the most profound importance. It is the idea that people can take care of themselves and solve their own problems, as they always do. It is an enunciation of the reality of how life actually operates. People facing issues having to do with hunger and shelter don't wait for the government to provide "solutions." They take matters into their own hands.
This is not a popular perception for obvious reasons. Much better to suggest that government can provide the requisite solutions. Here's some more from the Globe and Mail article:
The extraordinarily high number of Americans who have been out of a job for more than six months represents a serious threat to long-term vitality in the US, Mr. Bernanke said, arguing that helping them and putting Washington's finances on a sustainable path are not incompatible goals.
Normally, efforts to boost economic growth in the short term can take years to produce tangible results. But this time might be an exception, the Fed chief said. Unless the long-term unemployed are soon put back to work, they risk languishing on the jobless rolls as their skills erode. Such an outcome would represent a social scar, a drag on the US's economic dynamism and a burden on the country's social safety net, he said ...
"Although the issue of fiscal sustainability must urgently be addressed, fiscal policy makers should not, as a consequence, disregard the fragility of the current economic recovery," Mr. Bernanke said.
The Fed chief's call for a fiscal boost comes as a consensus grows among economists that the power of monetary policy to prop up the recovery is muted, with so many consumers and businesses unwilling to borrow at any rates, and banks still wary about lending. Stimulus measures could include anything from another infrastructure program that aims to re-employ jobless construction workers and repair America's crumbling roads, bridges and schools, to cuts in personal and corporate taxes. Most leading economists say any stimulus should be paired with deficit-reduction measures that would kick in once the economy is back on track.
Financial markets gyrated most of this week as investors speculated that Mr. Bernanke would use his speech to central bankers and economists at the Kansas City Fed's yearly symposium to herald a third round of "quantitative easing," the term Wall Street assigned to the Fed's efforts to lower market interest rates by creating billions of dollars to buy financial assets ...
Markets, we learn, are bound to be disappointed by Bernanke's lack of stated support for QE3 – the inaptly named process whereby government prints the money it then uses to buy its own debt issuances.
Instead, according to the Globe and Mail, Bernanke urged Congress to avoid such spectacles, "arguing that political gridlock and the downgrade of Washington's triple-A credit rating by Standard & Poor's combined with the European debt crisis to hurt household and business confidence."
Importantly, "the Fed chief's unusually pointed jabs were clearly designed to give some political cover for Mr. Obama to address the current malaise through fresh spending ... . 'The Fed is still very much prepared to employ more measures to prop up the economy but, unlike last year, Mr. Bernanke seems frustrated by politicians,' said Paul-André Pinsonnault, senior fixed-income economist at National Bank Financial Group in Montreal. 'He is calling for Congress to complement his actions instead of rendering them less effective.'"
This is, indeed, where the conversation inevitably concludes. Much hot air will continue to be expended to make these points. It is very important to establish that government is the necessary ingredient in the recipe to nurse the economy back to health. In fact, the opposite is true.
The more government involvement, the less the economy rebounds. And this is the real plan, isn't it? Make the economy so dysfunctional that only world government can provide the requisite solutions. Out of chaos, order. Bernanke is the current high priest of this madness.
Editor's Note: Don't miss tomorrow's exclusive interview. Special insights from a Daily Bell gnome (senior staff journo) trapped in a Yemeni prison for 30 days! Never before revealed details of that failed nation-state's all-encompassing American-supported police state and the larger US secret Gulag now embracing the entire Middle East. This is a real-life story, not a fantasy or fictional account – one you need to read to believe.
Posted by amanfromMars on 08/29/11 04:25 AM
Hi, Anthony Wile and DB stalwarts,
There comes an inevitable time, Anthony, whenever even the slowest of discontented folk realise that even the very best of their very valid and correctly reasonable arguments against a decidedly and designedly crooked elite system are going to be always ignored and just treated as ineffectual hot air. Then is the time come for something completely different, and against which there is no defense and no attack vectors. Prepare for some titanic storm waves which will wash away all those sticky sweet problems which are too stupid to resolve their pathetic leadership and failed policy and modus operandi issues themselves.
When the going gets tough, the tough gets going and IT gets real rough, but totally fair for a thoroughly, deservedly unfair insider market knowledge advantage.
[blockquote] I demand a better future in this world. And it is my inalienable right to do so and to arrange for ITs QuITe Immediate and Impromptu Product Placements.
And what when/if Beta Futures were easily delivered with CHAOSystems? …. Click to view link
Right up a Ziggy and Moby street, methinks.
And what if Flash Crashes and Market Routs were New Virtual World Orders for ZerodDay Vulnerability Testing of Cascading Command and Control SCADA Leverage Systems ……Facilitating AIRemote Arbitrage in Researched SMARTer Areas of CodeXSSXXXX DEvelopment? ……. The sort of crazy systems which have abandoned controls to man made mad machines …… Click to view link …… and are now simple helpless prey to complex alien algorithms and highly volatile, totally unpredictable but usually, naturally defaulted reasonable, fortune hunters with their out of this world cookies dealing Virtually Real and Pretty Good Private and Pirate Futures with Mutually Beneficial Derivatives for All and Sundry.
I Kid U Not …… for that is what IT can easily do today for tomorrow any day.
To be a Tool or a Weapon, or not to be a Tool or a Weapon, that is the question only its Great Game smarter use will answer, for ITs stupid abuse is disallowed and will not be tolerated at any level or in any possible phorm of the Past, Present or Future. Do not Tempt Fate to Demonstrate Absolute Merciless Power against Abuse so clearly advised as Intolerable and Unacceptable in Any and All of ITs Guises.
We all need to talk. …. We all need to listen …. and to think …… and then is talk fruitful and chatter a joy to Realise and Present with Definite Vision which builds Dream Bases upon which Life in LOVE can Begin again, and again, and again, and ……… forever. [/blockquote]
Whenever the dangling carrot does not work, DB, you gotta show the mother of all big sticks to get some real virtual attention. Then should blind ignorance and crass arrogance persist doggedly on its failed course, can it be easily changed with impunity and immunity in action which removes the problem corrupted elite systems from the equation.
IT aint rocket science, it is just simple common sense.
Posted by DarbyJie on 08/28/11 10:21 PM
*This* seems to be the issue that is giving those of us struggling to be free, the most trouble:
I refer to the James Madison quote* and the need to 'oversee the overseers'. THAT, it seems to me, is where America has failed most disastrously, and yet it doesn't seem that such a task would be that difficult! What might be used, may simply be the sort of think-tanks that our monstrous nemeses, the Elitists, have made such profitable use of (Rand Corp.,StanfordU etc.,anyone?) But instead of the best & brightest minds plotting different ways in which to subjugate/enslave us, they would be dedicated to OUR goals: immense powers kept forever safely away from the grasp of the psychotic nutcases [who always, it seems, seek it.]
Thus, having identified the correct goal,(the *real* trick IMHO!), the securing of same should NOT be that difficult.
What dost thou think?
**If men were angels, no government would be necessary. In framing a
government which is to be administered by men over men, the great
difficulty lies in this: you must first enable the government to control the
governed; and in the next place oblige it to control itself.
--James Madison, Federalist Paper No. 51 (1788)
**James Madison's quote from the Federalist Papers gets at the heart of the
problem that even a government of law is ultimately 'administered by men
over men.'** The framers of the U.S. Constitution addressed this problem by
dividing power among the different branches of government (legislative,
executive, and judicial). This framework for government, known as the
separation of powers, ensures that no one person is able to gain absolute
power and stand above the law.
Each branch of our government has some level of control or oversight over the actions of the other branches. The rule of law does not depend upon a U.S.-style separation of powers.
In a parliamentary system, for example, the powers of the executive and
legislative branches are combined; procedures such as 'no confidence' votes
and regularly scheduled elections serve as a check on the party that controls
the parliament. The key point is that every form of government has to have
some system to ensure that no one in the government has so much power that they can act above the law.
Posted by Thomas Molitor on 08/28/11 01:08 PM
Excellent explanation, as always, thank you.
Econometrics was the reason I stopped at the BA level in Econ school back in the 70s. The Austrian school was never mentioned even though Hayek won the Nobel in 1974 - none of my teachers knew who he was.
Human Action invalidates the logic of central planning, which clips the sails of the books assigned to me in those days: Keynes, Samuelson, Galbraith and Friedman.
I lament that a graduate school chock full of Austrians such as George Mason University didn't exist back in the late 70s.
Posted by johnacord on 08/28/11 10:42 AM
The collective will of the people is reflected in the leaders they select. A great change is occurring. I point to the increasingly large number of young people enthusiastically supporting Ron Paul in the USA, Wilders in the Netherlands, the BNP in the UK, Ramirez in Spain, Maurine Le Pen in France, and many others.
These young people will soon have the opportunity to govern. When that day finally comes we have to be prepared to completely destroy the elites who have wrought so much damage and horror upon our people and civilization.
They must not be allowed any opportunity to reorganize. For guidance, I suggest you read Francis Parker Yockey's IMPERIUM, a 70 year old text that convincingly explains the inevitable conquest of Western Civilization.
Posted by rossbcan on 08/28/11 08:26 AM
"your opinion on the viability of 'any government at all"
I differ slightly with DB on the definition of "government". IMHO, it is just an alliance of now forcefully maintained factional and predatory monopolies in various areas. This started from common interest.
For example firefighting, a common interest that used to be provided by competing private interests. In practice this worked out to be problematic, because people had different service providers and the spectacle of firefighters from service provider A allowing property "protected" by service provider "B" to "burn".
This matter could have been solved by allowing private firefighting services to form alliances and negotiate subcontracting rates to serve other's turf (customer base). But, the state decreed this monopolistic and illegal. Since these services were not allowed to self-organize, the problems remained. Thus, by forcefully preventing private interests from solving the problem of "firefighting for all", the state made it "appear" "necessary" that a monopoly, controlled by them was the only solution.
The same happened to police, electricity and virtually ALL areas where common interest exists. By achieving these monopolies and eliminating free market competition, these services became bloated, un-responsive to customer need, developed survival self-interest at expense of customers and, in general became both lacking in value with excessive costs, running amok, out of "customer" control.
Here's where DB and I differ:
ME: States and their endeavors can legitimately exist, so long as there are free enterprise (non-monopolistic) alternatives and, people can freely individually choose to associate or not. This is what "consent of the governed" really means, "consent of ALL of the governed" not "consent of some of the governed" to stick it to "others of the governed". The Nazis provide a stark example of where this political LIE leads.
DB: States are plain evil, uncontrollable and must be totally dismantled. And, even if not, will self-destruct anyway. According to DB's and practical definition of states, this is true and, we observe it happening NOW.
IMHO, for the most part circa over a century ago, states WERE CONTROLLED by the "rule of law" which disallows forceful monopolistic, initiate aggression of states or anyone:
Click to view link
Law is not "opinion" and choosing the one they like most that REAL law is concerned with (scales of justice weigh something which must be REAL), it is "keeping the peace" by balancing the "right CHOOSE to live" of each and every human being on the planet. If some individual or group (state is a group) interferes with "right to choose" life of anyone, they have initiated aggression and are therefore, criminals, fair game for their victims (or the law) to deal with REACTIVELY. In other words, criminals also have the right to choose their own fate by choosing to be criminals, or not. We are all free to do ANYTHING, except cause harm to others or initiate aggression.
Restore and personally insist on the "rule of law", in your turf, so poorly rationalized away by predators on the bench and, all of the problems of forceful monopolies go away and the state will have to compete on its merits with unfettered competition, on a collective path to peaceful excellence. Then, we shall see if the state is capable of or indeed provides any "value", defined by people voluntarily choosing it over unfettered alternatives.
Justice Defined: We are all free to profit or suffer and learn (adapt to excellence) by facing the consequences of our OWN choices. Injustice is to be forced to suffer the consequences of choices of unaccountable (irresponsible) others..
"The danger is not that a particular class is unfit to govern. Every class is unfit to govern. The law of liberty tends to abolish the reign of race over race, of faith over faith, of class over class." ~ Lord Acton
Posted by Hugh on 08/28/11 07:44 AM
"They have looted this nation, destroyed its morals and its economic engine, plunged tens of millions into poverty, caused untold stress and physical damage, ruined our institutions and caused the ship of state to crash upon the rocks of despair. All to feed their lust for power and wealth."
The damage done by these monsters working out of the City of London, DC and the Vatican is much worse than we can imagine or would want to imagine. Let the aptly named "directed history" of the 20th and now the 21th century by the PTB forever be known as the bloodiest ever recorded by man.
The suffering long endured by all the pawns of world wars; the ever present proxy wars now being fought nearly everywhere by satelite nations of the so called world powers; all of these churning out grieving families with little or no redress.
The death and destruction that these animal scum have wrought is.. well, it is indescribable. If one could ever really come to know the full breath of this evil, one's head just might explode.
Posted by Wrusssr on 08/28/11 04:57 AM
Whew, Billy Goat Gruff readers arrived just in time to knock the "one world (it's inevitable)" trolls off the bridge awhile. No left-right paradigms of import here folks; Democrats, Republicans, Independents--all irrelevant. Only thing that counts now is the Constitution, our rights, our laws. That's what the worlders have focused their fully funded death-ray on ever since Jackson kicked the Second Bank of America out. The worlders. The Rothschileans and their U.S. go-fers. Financial assassins all. Walk open-armed into their appointed one world scheme to have a cup of tea and you'll find yourself embracing mega-rich liars, thieves, and murderous monsters and Rhodes 'Scholars' who mean to eradicated four-fifths of the globe with things like tainted vaccines and genetically modified food that sterilize and harm humans and no, we're not over populated and aren't going to be. Wars, more starvation. Just get 'er done. They're on record. It's underway. You think one-worlders are going embrace humanity singing, "We'd like to buy the world a coke?" Not a chance. Constitution and rule of law. Imperfect as it is, it's still the best protection J. Average has of keeping these creeps out of your house and life and locking you up whenever the notion strikes them. They still fear it and the Second Amendment like other criminals do. The economic collapse ". . .didn't just happen because The Chosen made some financial mistakes and so now it's time to fold the Constitution's tent and everyone sew on their one world stars and move forward and get their gruel and shillings together like good lads and let the white hats on white horses figure this whole mess out for you." The question has been raised: What's it going to take for the masses to see? Their MSM propaganda outlets announcing the Constitution and our laws are dead? Let them declare it. Then, we'll see how far into the world psyche the Internet has penetrated. And who winds up in their Halliburton Pens.
Good, honest, in-good-taste article, DB.
Posted by Adrian W on 08/27/11 11:22 PM
Out of chaos, barter, barter, barter.. do not play their game. Human action at its finest
Posted by DarbyJie on 08/27/11 09:04 PM
"c) Collective "human action" will blowback with equal countering reaction to all actions on the part of power's futile attempts to decree a survival advantage for themselves which is, by definition a survival disadvantage for "we, the people". Or, haven't you noticed?
So, pick a REAL reason WHY, or, need I add more perspectives of blind people describing the "elephant in the room"?"
I'm always interested in your perspective, so please DO elaborate (including faults of reality-deniers, as described above.)
Also, what is your opinion on the viability of 'any government at all"? At this point, I don't have the luxury of having **any opinion at all**--a scary position I hope to remedy SOON, by reading von Mises, for starters... :-)
Posted by WarriorClass on 08/27/11 08:45 PM
Those issues are already covered here, so I have nothing further to say in that regard, and since I agree anything I would say would be redundant. I have a problem with the picture because I think that it does not do justice to Anthony.
Posted by WarriorClass on 08/27/11 08:39 PM
Summer, everyone sees through their own eyes and field of experince and my opinion is just my opinion, nothing more or less. My guess is that you see Anthony through his writing, which is that of a very smart guy. I couldn't agree more. I am a regular reader of his columns, and always enjoy them, and my heart is the same as his. I'm very greatful for The Daily Bell and for Anthony Wile. At the same time, I am also aware of how the general public views things, at least here in the USA. Judgements are made very quickly and without basis, which can destroy ideas that deserve our utmost attention. Anthony expresses those ideas very well. We need him here in the US. But my experience is that marketing is everything, if you are to get your point across.
There is much nobility in Anthony Wile, but not so much in the picture, in my opinion. This obersvation is in no way meant to detract from The Daily Bell or Anthony Wile. The messages here are important. Anthony is a hero for getting them out. I love this website and thank Anthony for doing it. I also try to direct people here to read the articles because they are so important, now more than ever.
Really, there is no intent on my part to degrade anyone here. But I did get a degree in Marketing and International Business and I guess it still colors my view point, eventhough it has been many years since I graduated.
Posted by rgperrin on 08/27/11 08:36 PM
Good grief! The photo is fine--actually better than fine. I will I looked this good. Find something else about which to cavil, say, the state of the U. S. economy and its decadent political leadership.
Posted by Summer on 08/27/11 07:53 PM
I'm not sure why you 'see' what you see, or indeed what kind of 'shot' you wish to see. I think Anthony Wile has a nobility to his continence, his picture (above) reflects this, as do his videos, writings and views...
Posted by WarriorClass on 08/27/11 07:09 PM
Hi rossbcan, did you ever get any feed back on the Prime Theory? We will be posting a better computer program in the near future that will be even faster at getting any very large prime, very, very, fast without a supercomputer. New theorem on the way too!
Click to view link
We post this on the internet free of charge for all of our liberty minded friends out there to use as they see the need. It is very powerful for those who understand its applications.
Posted by WarriorClass on 08/27/11 07:03 PM
Anthony, you are a very smart guy and I love your commentary. Are you waiting for the "but"? Yes, but, the person that takes your picture should be shot. You look like Chris Kattan or Will Ferrell at Night at the Roxbury. Total disconnect from the person I see in your highly intellegent writing. I hate having to say this because I don't want to hurt your feelings, but the last time I made this comment you took out the background picture of the mountains, which wasn't what I had reference to. Put the mountains back in, and get a new photographer for "your" picture. You have a very fine mind, and it should be reflected in your picture.
Yours in liberty,
Posted by rossbcan on 08/27/11 06:02 PM
Systemic Failure of All Governments is an Unchangeable Fact of Life: "
Can you explain _WHY_ this is so?
I can. Cannot force / enslave people without hierarchical organization which CANNOT work because:
a) Click to view link
Or, restricting free choice which DESTROYS ability to survive of civilizations (which after all is just the sum of people):
b) Click to view link
c) Collective "human action" will blowback with equal countering reaction to all actions on the part of power's futile attempts to decree a survival advantage for themselves which is, by definition a survival disadvantage for "we, the people". Or, haven't you noticed?
So, pick a REAL reason WHY, or, need I add more perspectives of blind people describing the "elephant in the room"?
Posted by dotti on 08/27/11 05:25 PM
mahatma, wonderful post!!! Extremely clever and well done!
Posted by FLEAGLE on 08/27/11 05:22 PM
Imaginatively beautiful piece.
Only,"The Three Stooges" were Entertaining,Funny.
These Pogues are dangerous Imposters.
I like your alluding to Lead as a 'precious' metal.
You've that Right,Mahatma. The Tournement hasn't Even begun yet,my friend.
Their Brand of Liberalism(a far cry from original)is more, insideous Treachery than humor- and generally qualifies as a mental disorder.Should be entered in the DSM III.
The tragic and glaring Truth is,none of this Danger instigated and propagated is from ineptness nor is it 'accidental'.
Posted by DwightMann on 08/27/11 05:10 PM
There is no substitute for honest money, and the free market. . .
I do not care what Bernanke says!
Another great article of immediate internet importance. . .
Posted by FLEAGLE on 08/27/11 05:03 PM