I wish it wasn’t true, but Mr.Bernanke now has the audacity to blame savers for today’s economic problems.
BERNANKE: People are saving way too much and it’s holding back the economy
Unbelievable, but true. In layman’s terms, here is what Mr. Bernanke wants you to do.
First, he doesn’t want you saving money. After all, saving money and then intelligently allocating that capital towards production, working capital, infrastructure, etc….., you know, growing the economy the old fashion way…..is foolish. Instead, people should spend every single penny on pointless consumption, then max out their credit cards and use that money to speculate in the stock market. Unfortunately, that is exactly how the US Economy is functioning today.
Second, the savings glut Mr. Bernanke is talking about is not a savings glut at all. It a little difficult to imagine, but it goes something like this. Mr. Bernanke (or Ms.Yellen) pushes a few buttons on his keyboard and “POOF” there is a Trillion dollars sitting on the FED’s balance sheet. Let’s call it “Magic”. That money then flows though the US and Global Economies in a number of different ways and all of a sudden we have our “Savings Glut”. There was no savings glut to begin with, its the same money (at X multiple) that the FED and other central bankers created out of thin air. Nice business if you can get in on it.
Sure, you can read Mr. Bernanke’s latest blog post and it will sound “reasonable”. Well, assuming you have at least five Ph.D’s and can understand what he is talking about. In the real world and for the real people, the explanation above will suffice. And if you are not concerned that these charlatans/criminals running our monetary system, well, you should be. They make Bernie Madoff look like a boy scout.
Bernanke: Idiotic Savers To Blame For Today’s Economic Conundrum Google