News headline 6 December: Bernanke says US ‘not printing money’
“One myth that’s out there is that what we’re doing is printing money,” he said. “We’re not printing money.
News headline 6 december: Uh Oh: The Government’s Printing Presses Have Broken Down!
The federal government has had to halt production of new high-tech $100 bills due to a significant flaw in the production process… The total face value of the unusable bills, $110 billion, represents more than ten percent of the entire supply of US currency on the planet, which a government source said is $930 billion in banknotes. For now, the unusable bills are stored in the vaults…
That explains it. Or does it?
Hat tip: Jesse’s Café Americain
Move along please. Nothing to see here. Those charts are not showing a rise. It’s enough to make you wonder about Bernanke. Indeed, Washington’s blog goes so far as to ask if Bernanke Look Like a Man Who is Confident About the State of the Economy and the Prospects for Recovery?:
But I think the real story is how nervous Bernanke appears.
Listen to his voice, and watch his lips quaver:
Too dull for me, on the subject of dull, how about this:
A fiat currency is backed by the economy of a country and its official cashflows (primarily taxes) as well as its reserves. As a country’s GDP and cashflow deteriorates the soundness of its currency can deteriorate even if the nominal levels of money remain unchanged. I think we are seeing quite a bit of this today. This deterioration in the backing of a currency is no different from a devaluation in its effect.
Bernanke is effectively money printing, even when he is not!
It’s enough to drive a man to drink. Particularly as most “money printing” does not involve printing. It’s just blips bouncing around computer screen. Was that the blue or the red pill?
Bernanke is also fighting against the tide of credit-money. He may mitigate deflation, but at the cost of hyperinflation once the circulation of money cranks up again.
It was a rank absurdity that a nation as great and strong as the United States still was should flush itself down the drain in a flood of money as it was appearing to do… A nation doing that to itself resembles not only a man drowning within arm’s length of an unseen shore, but one doing so with his strong arms and legs immobilized by the hypnotized belief that they are unable to move. It is absurd, but it is of just such epic absurdities of mass human conduct that the fabric of history is woven. Source: Parsson JO (1974) Dying of Money – Lessons of the Great German and American Inflations.
On a lighter note, don’t miss the video