News & Analysis
Bernanke: The Power of State-Run Capitalism Has Lifted the BRICs Out of Poverty
Remarkable economic transformation in India, China: Federal Reserve chairman ... Emerging markets like India and China are witnessing a remarkable transformation, despite a slowdown in economic growth, lifting millions of people out of poverty, Bernanke said. Emerging markets like India and China are witnessing a remarkable transformation, despite a slowdown in economic growth, lifting millions of people out of poverty, Federal Reserve Chairman Ben Bernanke has said. – Times of India
Dominant Social Theme: Thank goodness for fiat money and the way it raises whole populations out of impoverishment.
Free-Market Analysis: The meme to end all memes! We've been waiting for this article for ... well, forever!
So ... thanks, Ben Bernanke. We notice you traveled all the way to India to give your speech. Afraid it wouldn't be so well received at home? That's not surprising, considering the twin drivers you credit for the amazing success of the "BRICs."
State capitalism and central banking.
Yes, the dominant social theme you're promoting aggrandizes the transformative effect of capitalism. The subdominant social theme yet again deifies your fellow bankers, holders of the great golden key that unlocks the greatness of impoverished nations.
These are the same nations that the leading elites never gave a damn about until now. But now ... now we are apparently moving in a rush toward global governance. Thus, all the world's entities must surely be brought into sync. The West must be pulled down and the rest must be lifted up.
That's the conspiratorial view of things. Sounds crazy, doesn't it? As crazy as giving a handful of good, gray men the power to print trillions of dollars with the push of a button.
As crazy as organizing these men under an absolutely secret globalist institution called the Bank for International Settlements. As crazy as placing a veil of secrecy over the entire operation so no one can figure out exactly what is going on monetarily or how it is being coordinated.
But it IS being coordinated, and on an international scale. The BIS does exist. And central bankers conspire ... er, "consult" ... all the time, every day ... every hour. Every minute. That's what they do. What they are PAID to do.
It's not a conspiracy, though. These bankers are merely coordinating policy. They are figuring out who gets what goodies and when.
In the past decade it's been the BRICs. We've pointed out in numerous articles that China's latest "great leap forward" has been fueled by central bank money printing – and this is true for all the BRICs.
Is it a coincidence that at the same time as the developing world is rising the developed world is reeling? Accept that a small group of impossibly powerful people control central banking and wish to create global governance and these surprising economic trends begin to resolve themselves.
The mechanism itself is not difficult to discern ... not if one is willing to take the proverbial step back to look at the "big picture." And the big picture is fairly clear. Driven by central banking, the BRICs in particular have achieved miracles. Here's more from the article:
"In the emerging markets, you have a variety of different stories, but I think the fundamentals there, in the emerging markets, are pretty good, and even if there's some moderation of growth in some countries, we are seeing overall a rather remarkable transformation of places like China and India, which has been the biggest anti-poverty programme in history," [Bernanke] said yesterday.
"The growth in those countries has lifted many millions of people out of poverty. So, I think growth will proceed in those areas as well, with each country, each region − Latin America, Asia − dealing with different sets of issues," he said in his remarks on 'Monetary Policy, Recovery from the Global Financial Crisis and Long-Term Challenges Facing the US Economy' at the University of Michigan, Ann Arbor.
Globally, he said, the different parts of the world that are facing slowdowns, each has to address its own set of issues. "In Europe, some progress has been made in addressing their sovereign debt and banking issues that they have. The European Central Bank has taken some important steps to try to stabilise the financial markets there have been helpful," he said.
See what Bernanke modestly calls it: "A rather remarkable transformation of places like China and India." Bernanke won't offer the utterance so we will: Only central bankers with their fingers on the proverbial currency button could print enough fake money to create the "miracle" of progress in these vast, impoverished countries. The Bernank is just too modest!
Notice what else he says. "India ... has the biggest anti-poverty programme in history."
So this is the double-pronged attack that has lifted India out of the mire. On the one hand, central bankers print gobs of rupees. On the other, Indian bureaucrats somehow devised and implemented a brilliant anti-poverty program. The combination has created a historic change in India. Soon everyone will be rich.
Won't they? And yet ... the BRIC economies are impossibly distorted by all this money printing. Sooner or later they will go the way of the Asian Tigers (remember that bust in the 1990s?). Or how about Japan, a country that experienced a similar run-up 30 years ago and has yet to recover from it?
It is impossible to print one's way to prosperity ... isn't it? Great nations likely take centuries to achieve middle classes and deep, abiding wealth. The economy must be in sync with the culture and both must age slowly, like a fine wine. It can't be done in a decade or two ... or three. Economies that rise like rockets will likely come down just as hard.
Brazil, Russia, India, China ... these names toll out like bells ringing in honor of the dearly departed. And that's because their economies are probably marked for death and have been ever since the clever men at Goldman Sachs came up with their funny acronym. (Just coincidence, of course!)
Those men with great foresight ...the ones that coined the nomenclature just as the BRIC miracle was taking off. It sounds almost ... organized. Like some kind of promotion.
Of course, we know it can't be. What kind of Money Power could lift up nearly three billion people while bankrupting another one billion in the West? These are huge numbers. One would have to control the world (and all the money in it) to organize such impossible strategies.
Conclusion: Only "conspiracy loons" could believe such a thing was possible. No. Give credit where credit is due. The transformative power of capitalism aided by empathetic central banking is responsible for these great leaps forward. And having gone forward, they will never fall back ... Bernanke has it right. As usual!
Posted by isalcordo on 01/18/13 09:04 PM
Just a food for thought for use of FIAT MONEY"
When billions or trillions of dollars worth of infrastructures, private and public, are destroyed by natural calamities such as earthquakes, hurricanes, tornadoes, volcanic eruptions, etc. and by their associated destructive forces, could not governments be justified to print money to replace the destroyed infrastructures at existing appraised values since by so doing, NO NEW WEALTH WAS CREATED THROUGH SUCH FIAT MONEY? With increasing destructiveness of natural forces, should not the UN consider this as a kind of INTERNATIONAL INSURANCE POLICY FOR THE FUTURE?
Posted by 1776 on 01/18/13 12:59 PM
Once again demonstrating for all their whining about the middle class, progressive utopias end up destroying it. Eventually what's left are the very rich and the very poor. A Tale Of Two New York Cities: The Rich And The Hungry
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Posted by michaelser on 01/17/13 06:17 PM
Bernanke as all the banksters is interested in padding his account even with 'fiat money'.
For the time being we don't have the real government money, money backed up by the goods and services of a country. J.F. Kennedy in 1963 issued UNITED STATES NOTES which eliminated the FED from the circuit of printing and using FED notes.
That act of printing Government money brought death to Kennedy.
There was also Abraham Lincoln who printed Government money and he was also assassinated.
So there is a lesson to be learn, you circumvent the FED and private banks you take their way of living, you are bound to be killed.
Posted by 1776 on 01/17/13 01:32 PM
Worldwide Political and Financial Tensions, Spiralling Debt Crisis in America By Global Europe Anticipation Bulletin (GEAB) Global Research, January 17, 2013
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Posted by Abu Aardvark on 01/17/13 04:44 AM
Bloomberg: "Russia Says World Is Nearing Currency War as Europe Joins"
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Posted by Bischoff on 01/16/13 10:50 PM
RR: "The science of money is truly lost."
BISCHOFF: Not really. In the late 1800s and the early 1900s, American business schools were the premier business and banking educational institutions in the world. Students from overseas sought out these institutions in great numbers.
When Franklin Roosevelt, after promising that he would not, nationalized the gold holdings of American citizens in 1933, seven hundered business and economics professors signed an open letter begging him not to proceed with the prohibition to hold gold.
The Executive Order #6102 which nationalized the gold of U.S. citizens, issued by FDR despite the pleading of the business academics not to do so, in fact destroyed the market for Real Bills, against which private, commercial banks created the redeemable Federal Reserve Note.
The Federal Reserve Note which emerged after the 1935 Banking Act was an irredeemable, "managed" currency created by monetizing government debt. The FED was turned into a government agency by the NBA of 1935, and it brought the irredeemable FRN into circulation with help of the large money center banks, the very same banks which had purposely violated the original Federal Reserve Act of 1913 to cause the banking crisis which was to be resolved with the 1935 Act.
After the institution of the irredeemable FRN, business and economic professors quickly learned which side their bread was buttered, because none was ever heard from again in protest of "managed" currency.
... and to this day, nothing has changed in the education establishment to shake their support of the central government/central bank "managing" of currency. If you look to the present education establishment to teach real monetary science, you will look in vain.
If you really want to understand money and banking, I suggest you search the archives of Princeton, Yale and Harvard for the old curricula. Many of the old curricula have references which will astound you. You'll be amazed what you can learn about money and banking from those archives in contrast to what is offered by today's business schools.
Posted by Bischoff on 01/16/13 08:57 PM
CHARLIE: "Communism couldn't create wealth, so now fascism is the utopian scheme du jour. SOMEONE has to produce the wealth for the statists to loot. Ugh."
BISCHOFF: What is government, but a service... ??? Since when has a service provider ever produced wealth... ??? It is productive enterprise alone which produces all the wealth to pay for services.
Of course you won't hear that from the coopted educational establishment. Their teaching service is highly paid with "managed" currency created by the politicians and the special interest bankers. In turn they provide intellectual cover with their monetary and economic theories which justifies the "managed" economy. What a deal...
The need to "work", i.e the energy expenditure required to produce wealth never seems to receive great emphasis either from the politicians, nor from the academics. Any thoughts why that might be... ???
Posted by seer on 01/16/13 06:58 PM
The game is still the same whether it is state directed or not. An economy based on debt expansions and therefore never ending token expansion based on finite energy resources cannot last unless a new form of energy is discovered. THIS WILL STILL NOT ELIMINATE THE CONSTANT BUBBLES AND BUSTS associated with this system.
Posted by Charlie on 01/16/13 06:48 PM
Communism couldn't create wealth, so now fascism is the utopian scheme du jour. SOMEONE has to produce the wealth for the statists to loot. Ugh.
Posted by RR on 01/16/13 05:19 PM
The science of money is truly lost.
Posted by Friend_of_John_Galt on 01/16/13 05:07 PM
The ultimate Irony is that every one of the economic problems India is having is a result of current and past government interventions in their economy. India suffered as the most destitute "democracy" for nearly half a century after its liberation from the British "colonizers" by following a strict "democratic socialism" economy. Only in the past decade has there been "liberalization" so that instead of choking the economy, they merely tie it up in red tape.
The best example of the disaster that is the Indian economy can be seen in a recent Wall Street Journal article about Walmart's efforts to set up a distribution system to supply planned Walmart stores. Produce (vegetables, etc.) grown by a tiny farmer (average ]3 acres) is _required_ to move though state-run wholesale markets. Before actually reaching a retail store, a shipment of produce might move through as many as 6 wholesale markets and add about 600% (!) to the price (with the increase all going to the intermediaries, not the actual producer).
Naturally, India has some of the highest losses of food to improper storage and ravages by rodents, etc. of any semi-developed country. But the central planners are well paid and are "resistant to change."
Posted by Lark In Texas on 01/16/13 05:05 PM
Does Ben like communism? Well, of course he does! And monopoly capitalism too?
Why, sure he does! After all, aren't they one and the same there, Ben?
(Don't trouble yourself with another smug reply there, Ben. Folks like me just don't count!)
So go primp away on that magnificant beard of yours, why doncha? Talk's always cheap - competition's a sin - and you well know it. ;)
Posted by jetgraphics on 01/16/13 03:31 PM
To use the term, "liar", is insufficient to convey the depth of disgust with Bernanke and the usurers.
They rarely apologize for their usury, a scam and an abomination, and due to the exponential equation used to calculate compound interest, requires an infinite money supply - which is mathematically unsustainable in a finite money token system.
As to "fiat currency", the U.S. dollar bill is a worthless note, underwritten by over 300 million human resources (via FICA), and NOT fiat.
The Congress has been kiting "bad checks" for generations under a bogus "State of Emergency" and bankruptcy to the very bankers who act innocent, while skimming a fortune from the sheeple. Sheeple, who not only must be meek while being sheared, but must be grateful that they're allowed to regrow their wool before being sheared again.
Due to "money madness" the world is being brought to the brink of collapse, and they will gleefully push it over, expecting even greater profits afterwards.
Posted by earnst on 01/16/13 02:01 PM
Today's article views the forest whereas it is preferable to burn the trees as one will ignite the other. I see the current attack on the second ammendment as an indicator that continued robbing of Peter is required by Paul. The point being that it is urgent that we stop the Fed and it's political fingers now, here in the US, or expect the transfer of wealth to continue and possibly accelerate since no other countries are in as strong a position to affect change as we are. They are trying to further weaken us right now. Look at Dimon's bonus. Are we powerless? The sword is in the mouth, thanks DB, and I feel now is the crucial moment for each of us to shout it from the rooftops. I am grateful for you all.
Reply from The Daily Bell
Always better to watch the forest. Thanks.
Posted by Abu Aardvark on 01/16/13 12:54 PM
DB: "Bernanke has it right. As usual!"
Sure, no doubt about that. Hehehe ...
Question to the Bernank at the University of Michigan on Monday:
"Why did the Fed decide in December to stop predicting an end date for low interest rates, and instead to describe its economic objectives?"
Answers the Bernank:
'We gave a date which was just our best guess, and then it changed a couple of times'
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And now for something completely different ...
"Drudge Links Obama and Hitler on Gun Control. Left Cries, 'Foul!'
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"Redacting Racism: Edit of Classic Children's Book Hexes Publisher"
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"Sony Issues Dylan CDs to Extend Copyright"
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Posted by 1776 on 01/16/13 12:35 PM
Obamanomics: Long Term Unemployment At Highest Level Since WWII
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Posted by 1776 on 01/16/13 11:56 AM
A FED Dove Calls for All Inflation, All the Time Gary North - January 15, 2013
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