STAFF NEWS & ANALYSIS
Bernanke: The Power of State-Run Capitalism Has Lifted the BRICs Out of Poverty
By Staff News & Analysis - January 16, 2013

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.

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.

Fiverr

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.

After Thoughts

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!

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