Bernanke passes early media test, challenge to come … Ben Bernanke used his second-ever news conference on Wednesday to teach the world's financial markets a lot more about the thinking at the Federal Reserve than they could glean from its usual statements. But the Fed chairman and former Princeton professor has yet to face one of the most important oral exams of his career: justifying and defending a change in the Fed's extraordinary monetary policy, when the time comes. – Reuters
Dominant Social Theme: Thank goodness the Federal Reserve is bouncing back with honesty, transparency and sincerity.
Free-Market Analysis: More than two years ago, we pointed out that the Federal Reserve was potentially finished as a credible entity. This is different than saying the Fed was finished as an EFFECTIVE entity. The Fed has accomplished much of what the power elite intended for it to do. It has, in stages, bankrupted the US middle class – as well as federal, state and local governments.
It has thus been the jewel in a studded, strangulating noose that the Anglosphere Power Elite has slipped over the neck of the body politic. The elites have tightened the noose slowly but inexorably in order to weaken this body politic in the process of imposing world government.
But the beginning of the end may be at hand. And for the Fed it may have come in early 2009 when those running this grandest of all central banks in their arrogance and disdain released the Fed's inspector general, Elizabeth Coleman, on an unsuspecting Congressional audience. After watching the video, we wrote an article that appeared on May 13, 2009, entitled, The Beginning of the End? Fed Cannot Account for $9 Trillion. Here's how it started:
We saw the interview with Elizabeth Coleman on TV and then again and again and again on youtube.com. It is entitled "Is Anyone Minding the Store at the Federal Reserve?" and it is one of the single most astonishing moments (or minutes) ever manifested or preserved in this already-amazing digital era. A century ago, when the powers-that-be pushed through the act that set up the American Federal Reserve – which basically kicked off the central banking era in America and abroad – the kind of technological ubiquity offered by the Internet would certainly have been seen as a major and alarming challenge. Well, it is.
The Grayson/Coleman confrontation has to be seen to be believed, and even then it may not seem quite believable. How could the Fed, in all its monied majesty, offer up someone so unprepared to answer the questions of a single quiet and persevering congressman. … During the questioning of Coleman, [Congressman Alan] Grayson asks her over and over if there is a formal accounting available for the trillions in off-book balance sheet activity for the Fed.
He asks patiently, and he repeats the question many times. Coleman stutters, makes statements that are obviously evasive and finally all-but-admits that she actually has no authority even to examine the Fed's off-balance sheet activities. She admits this in a frazzled manner, but only after losing her way so badly that she has to ask Grayson to repeat the question (which he has already asked about ten times.)
What the scenario seems to shows us – and this has already been suggested by the increasingly querulous appearances of Ben Bernanke – is that the huge monetary and organizational powers of the Fed are a thousand miles wide and an inch deep …
Here is a link to the Coleman video in the DB video vault: Is Anyone Minding the Store at the Federal Reserve?
The proximate result of that public relations disaster, much commented on, eventually, in the alternative press (though not in the mainstream) is what we have today: the spectacle of the world's most powerful elite enabler, Ben Bernanke, nervously facing the spotlights, cameras and questions of an inquiring populace that is slowly awakening from their dreamtime trance of the 20th century – thanks to the Internet Reformation.
Bernanke and his circle no doubt did not want him to be paraded out in front of the "public," but they have no choice. Bernanke is under attack personally and the Fed is under attack as an institution. It is not in fact just the Fed, but the entire institution of central banking, perhaps the most important dominant social them in the Anglosphere elite's arsenal.
Without the ability to print money from nothing, the elites would not be able to start the wars they have prosecuted so promiscuously in the past decade, would not be able to control governments, manipulate universities and their scientists, purchase wholesale the political process, etc. In other words, the ability of Western elites to pursue and impose one world government would be much constrained. Money Power is the gift that keeps on giving.
The key to this pusillanimous process of wealth redistribution lies with Federal Reserve. Simply examine the 20th century and its "world wars," all of which occurred AFTER the US Federal Reserve received its brief. Once the Anglosphere elites had managed to obtain the license to print money from nothing under color of law, the rest of the plan was put into action. Wars were waged to create global centralizing facilities like the League of Nations and, ultimately, the UN.
The methodology that the power elite has used is one of its dominant social themes. These are fear-based promotions that frighten Western middle classes (especially) into giving up power and wealth in exchange for globalist solutions. The Federal Reserve – the neccesity of central banking, really – has been one of the Anglosphere elite's most successful memes. It proposes that the economy is so scary and uncontrollable that only a handful of extremely "wise men" with important university degrees can manage it.
But lately, thanks in large part to the Internet, the central banking promotion is beginning to fail. The financial crisis provided people with an incentive to turn to the Internet to find out what has happening to the economy. What they found was a central banking economy, one in which a handful of men were giving away literally tens of trillions of dollars in instant loans and outright grants to the largest and most voracious securities businesses and banks on earth.
What those around the Fed still do not grasp is that the MORAL AUTHORITY of central banking has been severely damaged. It happened in this case on a single day when Congressman Grayson asked the Fed's inspector general to account for US$9 trillion … and she could not. We have watched the Fed and its apologists scramble ever since. Those most invested with the Fed no doubt believe that by exhibiting efficiency and responsiveness, they can regain the public trust. This is probably not possible.
The initial organizers of the Fed believed in maximum secrecy. Even interest rate changes were not announced publicly. But today, the idea is to make Bernanke as accessible as he can be within certain controlled circumstances. The Fed's leaders, and those behind the Fed, want to show they have nothing to hide. This is missing the point.
In fact, the point is that millions – hundreds of millions perhaps – understand that a few, unaccountable individuals are in position to GIVE AWAY TENS OF TRILLIONS OF DOLLARS IF THEY SO CHOOSE. This is hard to take when one's pension is being slashed or one is being warned that austerity is the only cure to national profligacy. Here's another quote from the Christian Science Monitor article excerpted above:
"(Former Fed Chairman) Alan Greenspan was famous for needing a secrete decoder ring for trying to understand what he was saying," said Michael Hanson, a senior economist at Bank of America/ Merrill Lynch in New York. "I think Bernanke is much more willing to say what is on his mind." … While arguing that rising inflation leaves little scope for another round of stimulus, Bernanke listed several tools the Fed could use to ease monetary conditions further should it need to do so. "There were definitely things that one learns," said Michael Feroli, an economist at JP Morgan Chase.
You see how they're missing the point? Alan Greenspan was opaque, but this is the "New Fed" and Ben Bernanke is going to be as honest and open as he possibly can be. This is in a sense dunderheaded.
The Fed was plotted for purposes of destroying the middle class; it was conceived in secrecy when its supporters, the wealthiest men on the planet, traveled to Jekyll Island to plan its structure; it was to be a weapon of mass financial destruction and it has achieved that purpose. How can one maintain that such an instrumentality is nothing but an innocent, if wealthy, facility of middle class prosperity? It is late in the day.
Central banking is not about being honest and open. It is built on a lie and maintained by a mesh of falsehoods. It is structured (falsely) like a religion, in which its good gray acolytes participate in a series of ritualistic confabulations and then emerge as the Greek Oracles of Delphi once issued out of their caves to issue cryptic statements that can be interpreted any one of a number of ways. The point of the exercise is not accuracy but theatre.
Increasingly, Bernanke does not impress – he ain't no Carey Grant. Strip the ritual mysteries and you have a weak-chinned, bearded fellow babbling easily rebutted falsehoods about the value of paper money. And even were Bernanke to appear credible as planned, it would not salvage a thing.
You see … people throughout the US – and throughout the West in fact – have followed the giveaways by central banks in real time. This is the part that cannot be acknowledged. The Internet has fully revealed the astounding unfairness of the current economy, where a handful of individuals have access to trillions while most others are struggling to pay off a thousand dollars on their credit card lines.
This is the fundamental injustice inherent in the current system. It is the reason that the initiators of central banking wanted secrecy. It is not a "system" so much as a hijacking. Making such a facility more transparent in the end will only add to the indignation.
It is a failing meme. Exposure may have finished it. It is ironic that those invested in it believe that MORE exposure will somehow make it more palatable. John Maynard Keynes said not one man in a million understood the current money system. He had it wrong. Today, not one man in a million, if asked, would approve of it. And what happens when millions wake up and rise up in unison? You get the drift, dear reader.