Mr. Bernanke’s performance was a charade meant to hide the fact that the government is now illiquid! Mr. Bernanke instituted QE2 because the Federal Government has reached the point where it cannot pay its bills.
Monty Pelerin at American Thinker
If the Fed does not buy government bonds (print money), checks will stop for programs like Social Security, Medicare and Medicaid reimbursements, military pay, etc.
The Madoff Model of government just ended. There are no longer enough bond buyers or taxpayers to pay for the profligate spending of the US government.
The government would have to double every tax it collects (including payroll taxes) to run 5% surpluses for decades in order to bring government obligations into manageable range. Such tax increases would plunge the US and probably the world into an economic Dark Ages.
Alternatively, current government spending could be cut by about 50%.
Mr. Bernanke has deferred the day of reckoning. His action will not prevent government collapse, it will ensure it, along with collapses in the currency, economy and likely society itself. This little man, unelected and accountable to no one, has just sentenced the country to an Economic Apocalypse.
Now you know and others will pick up on this quickly. Make like the political elite and protect yourselves from the Level Six economic hurricane that Mr. Bernanke is stoking.
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