It’s probably not a very politically correct thing to say. But when I saw this piece of news a short time back it was the first thing that came into my mind.
I saw the headline on Bloomberg: “Bernanke Says U.S. Should Tackle Debt.”
Apparently our friend, Federal Reserve Chairman Ben Bernanke, is warning that U.S. budget deficits threaten the nation’s long-term economic health and should be addressed soon.
Yeah, Can you believe it?
Now you probably understand the title for this article.
Nobody has done more to increase the deficit of the United States in our entire history than Mr. Bernanke.
Can you say bank bailouts?
Ben Bernanke and his partners in money printing have orchestrated the biggest financial spending spree in U.S. history. To date, Bernanke, Treasury Secretary Tim Geithner, and their associated partners have doled out a whopping $4.6 trillion of your hard earned taxpayer dollars to Wall Street banks and toxic mortgages. Even worse, according to sourcewatch.org, there’s $14 trillion that the U.S. taxpayer is at risk for because of these bailouts.
But wait a minute. Some of you might be saying that Bernanke has saved the U.S. from financial crisis and Wall Street firms have been paying back the bailouts.
As far as any “saving” goes, time will tell whether Bernanke saved the U.S. economy from a major collapse or whether he simply prolonged it or made it worse.
As far as Wall Street firms paying back bailouts, you have to dig a little deeper to get to the real story.
Wall Street firms have been paying back funds from TARP (Troubled Asset Relief Program). This was the funding authorized by Congress under the leadership of then Treasury Secretary Hank Paulson and our former President George W. Bush.
TARP ended up loaning Wall Street banks about $410 billion, which was less than one tenth of the total U.S. bailout of $4.6 trillion. Of the $410 billion loaned, less than half has been paid back and Wall Street is still on the hook for over $224 billion worth of TARP funds.
When you add TARP and Non-TARP funds that have been doled out to Wall Street banks, there’s about $2 trillion still owed to U.S. taxpayers.
So how did Mr. Bernanke manage to spend all of this taxpayer money?
Well, there’s a reason why Dr. Marc Faber calls him “The Money Printer.” Since the start of 2008, Bernanke and the Federal Reserve have almost tripled the U.S. monetary base, which is basically the total amount of printed paper money and coins in the United States.
The amount of money that’s available to you and me circulating the economy, or M2 money supply, has only gone up a paltry 13 percent during that time period.
Here’s where things get tricky.
The amount of money printed has tripled, but the amount of money that you and I have access to has only gone up 13 percent. There is a huge disconnect there.
Over time, all of the money that Bernanke has printed will infiltrate the money supply and work its way through the economy. That’s why many experts are pointing to massive inflation in the coming years for the United States.
So far the U.S. has been able to keep all of the money it has printed out of the hands of its people. Once the people get a hold of all of this new money, all bets are off.
But getting back to our original point, Mr. Bernanke needs to take a look in the mirror. He is warning Americans to solve a problem that he in large part created.
Americans were in large part against the Wall Street bailouts and the massive increase in government spending and influence.
The majority of Americans were against the trillion dollar government takeover of health care.
Yet Bernanke, Obama, and Geithner still endure. They are hellbent on spending as much money as they can and grabbing as much power as they can.
Maybe if those guys believed in the American people, they would have realized that all of these toxic assets and banks needed to go bankrupt. They should have realized that the American will is strong and that once the bad banks had been purged from our system, Americans could start fresh and come back bigger and better than ever.
The American legacy never has been that of government providing for the people. The American legacy has been built on a strong sense of individualism, creativity, patriotism, and steadfastness.
We love our country which is why we don’t wish to burden it. Creating trillions of dollars in excess spending is an excessive burden created by career bureaucrats and politicians.
So Mr. Bernanke, when you start to talk about tackling U.S. debt, you should remember one thing: it was career bureaucrats and politicians like you and Mr. Obama who created all of this debt. Maybe the American people should talk about tackling you and placing new people in office.
Now that sounds like change we can all believe in.