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The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming

The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming



Federal Reserve Chairman Ben Bernanke...

Federal Reserve Chairman Ben Bernanke
delivered his annual address to Congress on
Tuesday, and he did very little to give
lawmakers much confidence about where
the U.S. economy is heading. Bernanke
told members of Congress that recent
economic data points “suggest further
weakness ahead” and that the Federal
Reserve is projecting that the U.S.
unemployment rate will remain at 7 percent
or above all the way through the end of



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    The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming The Federal Reserve Is Not Going To Save Us From The Great Depression That Is Coming Document Transcript

    • The Federal Reserve Is Not Going To Save UsFrom The Great Depression That Is ComingMichael SnyderThe American DreamJuly 18, 2012Federal Reserve Chairman Ben Bernankedelivered his annual address to Congress onTuesday, and he did very little to givelawmakers much confidence about wherethe U.S. economy is heading. Bernanketold members of Congress that recenteconomic data points “suggest furtherweakness ahead” and that the FederalReserve is projecting that the U.S.unemployment rate will remain at 7 percentor above all the way through the end of2014.Now, it is important to keep in mind that Federal Reserve forecasts are almost always way toooptimistic. The actual numbers almost always end up being much worse than what the Fed saysthey will be. So if Bernanke is saying that the U.S. unemployment rate will be 7 percent or higheruntil the end of 2014, then what will the real numbers end up looking like? During his testimony,Bernanke seemed unusually gloomy about the direction of the U.S. economy. He seemed resignedto the fact that there really isn’t that much more that the Federal Reserve can do to stimulate theU.S. economy. Yes, the Federal Reserve could try another round of quantitative easing, but thefirst two rounds did not really do that much to help. The truth is that the United States isabsolutely drowning in debt, and when that debt bubble finally bursts the Federal Reserve issimply not going to be able to save us from the Great Depression that will happen as a result.At this point, Bernanke appears to be in “cya” mode. For example, the following is from Bernanke’sprepared remarks to Congress on Tuesday…. The second important risk to our recovery, as I mentioned, is the domestic fiscal situation. As is well known, U.S. fiscal policies are on an unsustainable path, and the development of a credible medium-term plan for controlling deficits should be a high priority. At the same time, fiscal decisions should take into account the fragility of the recovery. That recovery could be endangered by the confluence of tax increases and spending reductions that will take effect early next year if no legislative action is taken. The Congressional Budget Office has estimated that, if the full range of tax increases and spending cuts were allowed to take effect–a scenario widely referred to as the fiscal cliff–a shallow recession would occur early next year and about 1-1/4 million fewer jobs would be created in 2013. These estimates do not incorporate the additional negative effects likely to result from public uncertainty about how these matters will be resolved. As you recall, market volatility spiked and confidence fell last summer, in part as a result of the protracted debate about the necessary increase in the debt ceiling. Similar effects could ensue as the debt ceiling and other difficult fiscal issues come into clearer view toward the end of this year.
    • The most effective way that the Congress could help to support the economy right now would be to work to address the nation’s fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery. Doing so earlier rather than later would help reduce uncertainty and boost household and business confidence.Did you catch that? Bernanke says that the federal government is on an “unsustainable path” and mustreduce debt, but he also says that the economy cannot afford tax increases and spending cuts right now.In fact, Bernanke is warning that “a shallow recession would occur early next year” if something is notdone about the looming “fiscal cliff” that so many people are talking about.So what does Bernanke want us to do?If we continue on the path that we are on, our debt will continue to grow by leaps and bounds.But if we seriously cut spending or raise taxes, that will significantly slow down the economy.Either path leads to a whole lot of pain.Bernanke sounds like a politician that is trying to cover all of his bases without giving us arecommendation about how to fix things.Of course the truth is that the Federal Reserve system itself is at the very heart of our economicproblems and has been the engine that has caused our national debt to explode at an exponential rate,but we all know that Bernanke will never admit that.Bernanke can see that things are starting to fall apart, and he wants to shift as much blame to Congressand to other entities as he can while there is still time.Bernanke knows that the U.S. economy is not going to produce enough jobs for our populationanymore, and he does not want to be blamed for that.Bernanke knows that the money printing done by the Fed is going to cause prices to continue to go upand that this will seriously stretch family budgets all over America, and he does not want to be blamedfor that.Bernanke wants to come out of all this looking like a good guy. At this point he is probably hoping thatthe next great global financial crisis does not happen until his term ends.Unfortunately, he is not going to have that luxury. The next wave of the economic collapse is rapidlyapproaching, and it is going to hit the U.S. even harder than the last recession did.And when the unemployment rate soars well up into the double digits, what do you think is going tohappen?The truth is that the entire country will soon resemble cities such as Gary, Indiana and Flint, Michigan.To get an idea of what most of our cites will soon look like, just check out this video.When people lose hope, they tend to get desperate.And desperate people do desperate things.Just look at the mob robberies that we are seeing all over the country right now.In Jacksonville, Florida the other day, hundreds of young people that had just left a massive house partythat police had broken up decided that they would descend on the local Wal-Mart.According to police, approximately 300 people stormed into Wal-Mart and started going crazy. They
    • threw produce at each other, many of them started putting merchandise into their pockets, theydestroyed an anti-shoplifting security scanner that is worth about $1,500 and there were even reportsthat shots were fired outside of the store.It was absolute chaos. You can see video of this incident right here.A similar mob robbery happened in the Portland, Oregon area on Saturday night…. A group of teens targeted a Troutdale store last weekend in a ‘flash rob’ and investigators are trying to identify the suspects. Investigators said as many as 40 kids entered the Albertsons store at 25691 SE Stark Street at the same time late Saturday night and started stealing things. Security officers chased the thieves out, but no one was captured. They also left employees pretty shaken up, including one woman who was in tears after getting terrorized by the robbers.So will Ben Bernanke and the Federal Reserve be able to save us from this kind of chaos?Of course not.If you have any faith in Bernanke at this point then you are being quite foolish.Our economy is on the verge of collapse, and when it does collapse there is going to be hell to payon the streets of America.These days young people seem to commit absolutely brutal crimes just for the fun of it. For example,in Chicago the other day two teens beat to death a 62 year old disabled man who was collecting cansfor no apparent reason whatsoever. The following is from a report about this incident from the NBCaffiliate in Chicago…. Police said a 16-year-old gang member punched Delfino Mora, father to 12 children and a grandfather to 23, last Tuesday in an alley in the 6300 block of North Artesian. Mora’s devastated family told NBC Chicago that Mora was on his regular route of collecting cans that he sells for cash when the teens confronted him. Nicholas Ayala, 17, of the 6300 block of North Talman and Anthony Malcolm, 18, of the 5500 block of North Broadway were both charged with first-degree murder and robbery. Malik Jones, 16, the Latin Kings member accused of striking Mora, was charged with first- degree murder and ordered held without bail Sunday by Judge Adam Bourgeois. Police said Jones handed his friends his cell phone to start filming then demanded money from Mora and punched him in the jaw. Ayala and Malcolm are accused of taking turns filming the video which allegedly showed Mora’s head smashing into the concrete.But just because you aren’t in the city does not mean that you are safe.For example, just check out what happened to three rural Michigan teens when they decided that itwould be fun to hop on a passing train. The following is from a recent article in the New YorkTimes…. For generations of Midwestern youths who have grown up hearing the long whistles and deep rumbling of passing locomotives, hopping a freight train to another city has seemed like a free ride to adventure.
    • But for three rural Michigan teen-agers who actually followed this dream, the results proved disastrous. The two 15-year-old boys and a 14-year-old girl climbed off the train when it stopped last Wednesday evening in a rough neighborhood here. Within hours, the girl had suffered multiple sexual assaults and all three had been shot in the head and left for dead in a park. One boy, Michael Carter, was killed, while the other, Dustin Kaiser, and the girl staggered to a road and flagged down a truck driver. Dustin is in stable condition at the Hurley Medical Center after two rounds of surgery, while the girl, who was shot through the cheek, was treated and released on Friday, said Donna J. Fonger, a hospital administrator. Our country is degenerating, and the Federal Reserve is not going to save you. We have been living in the greatest debt bubble in the history of the planet, and it is going to burst at some point and that is going to cause a massive economic depression.Just check out what Richard Duncan, the author of The New Depression, told CNBC the other day…. When we broke the link between money and gold forty years ago, this removed all the constraints on credit creation. And afterwards credit absolutely exploded. In the U.S. it grew from $1 trillion to $50 trillion – a fifty-fold increase in forty three years. This explosion of credit created the world we live. It created very rapid economic growth. It ushered in the age of globalization. But it now seems credit cannot expand any further because the private sector is incapable of repaying the debt that it has already. And if credit now begins to contract there is a very real danger that we will collapse into a new great depression.In the chart posted below you can see what he is talking about. Once upon a time the total amount ofdebt in the United States (including government debt, business debt and consumer debt) was sitting atabout a trillion dollars.Today, it has nearly reached 55 trillion dollars….We have lived way above our means for decades, and now a day of reckoning is rapidlyapproaching.Ben Bernanke and the Federal Reserve may be able to delay the coming depression slightly, but theycannot avert it. You better get ready.
    • Peter Schiff: ‘If you don’t own gold andsilver, you really got to buy’Infowars.comJuly 18, 2012Peter Schiff, author of Real Crash:America’s Coming Bankruptcy, tells Yahoo!Finance’s Breakout show he predicts that amajor economic collapse will happen by2015 that will make the 2008 recession palein comparison.He warns hyperinflation may ensue if thegovernment again prints money out of thinair to bail out mortgage lenders and others,and warns against depending on the stabilityof the dollar: “Anything in dollars, even ifyou’ve got dollars stuffed in your mattressyou’re going to lose because they’re not going to buy you what you expect.”Peter Schiff: ‘If you don’t own gold and silver, you really got to buy’ VIDEO BELOWhttp://www.infowars.com/peter-schiff-if-you-dont-own-gold-and-silver-you-really-got-to-buy/More Americans on Government Dole ThanFound JobsKurt NimmoInfowars.comJuly 18, 2012Between April and June, according tostatistics released by the Senate BudgetCommittee, more Americans went on SocialSecurity disability than found jobs.According to figures released by thecommittee, a total of 246,000 people enrolledin the Social Security Disability Insuranceprogram while during the same period amere 225,000 found jobs.
    • Senator Jeff Sessions, the ranking Republican on the budget panel, said that since 2008 and theonset of the latest economic recession 3.6 million Americans have gone on disability and 1.3million have lost jobs.“Amazingly, while fewer Americans are working than at the end of 2008, 3.6 million Americans havebeen awarded SSDI benefits over the same period. The growing number of people on disability andother federal benefits, combined with weak economic growth, raises serious concerns about thesustainability of the American economy,” said the Alabama senator.“It is clear there is a great need to distinguish between proper and improper disability claims, and tobetter incentivize and find acceptable work for those who are able. Today only 1 percent of SocialSecurity disability recipients ever return to work. The administration of this program must be improvedto avoid sinking our country deeper into debt, to ensure the program remains viable for those with disabilities, and to protect Social Security itself.” On July 11, the U.S. Bureau of Labor Statistics reported a seasonally adjusted unemployment rate of 8.2 percent. However, according to John Williams’ “Shadow Government Statistics” website, the real unemployment rate is closer to 22 percent. Williams’ methodology for determining the real unemployment rate includes “long- term discouraged workers” who are removed from the category of those considered “unemployed,” a bookkeeping trick instituted by the Clinton administration in 1994 to make unemployment appear lower than it actually is.
    • In February of 2009, Obama created hisCouncil on Jobs and Competitiveness.Formerly titled the Economic RecoveryAdvisory Board, the council was chaired byformer Federal Reserve chairman PaulVolcker. Members of the panel are involvedin outsourcing jobs. The board has not met inover six months due to bipartisan issues and areluctance by members to meet duringObama’s re-election campaign.During a recent campaign stop, Obamacriticized small business despite the fact theyare the engine of job creation in the UnitedStates. According to data released byAutomatic Data Processing, Inc., of the 216,000 new jobs created in February of this year, 108,000 ormore than half were created by businesses with 49 or fewer employees. The 88,000 new jobs createdby companies with 50-499 employees brings the total of new jobs from small businesses for Februaryto 90 percent, The Daily Times notes.HSBC ‘allowed drug cartels to laundermoney’Al Jazeera.comJuly 18, 2012Lax controls at Europe’s largest bank, HSBC,allowed Mexican drug cartels to launderbillions of dollars through its US operations, aninvestigation by the US senate has found.The extensive report on London-based HSBCHoldings PLC by the Senate PermanentSubcommittee on Investigations also says USregulators knew the bank had a poor system todetect problems but failed to take action.HSBC executives brushed off complaints from other bank employees, so that the problems persistedfor eight years, the report says.Read full article http://www.infowars.com