19 votes

There! He Said it: Without QE the Economy Would Tank

Google "Ben Bernanke if we were to tighten policy the economy would tank"

You won't find that quote in the NY Times, USA Today, MSNBC CNBC, CNN etal.

Yet Ben Bernanke said those precise words last week.

It didn't go unnoticed here at the DP.This post by emalvini: http://www.dailypaul.com/293126/bernanke-confirms-if-we-were...

post got 13 up votes and nine comments, hardly the type of reception you would expect from a block buster admission coming from the Fed Chairman.

There is a video posted on the Smaulgld blog from Bloomberg covering Bernanke's statement that has at this moment just 349 views!


Right out in the open the Fed Chairman admitted our economy is based solely on printing money (QE) and barely anyone noticed!

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QE only postpones the

QE only postpones the inevitable. The Banksters know exactly what they are doing. Time to put the criminals where they belong or become prisoners ourselves.

"The United States can pay any debt it has because we can always print money to do that." — Alan Greenspan

quote could be fake


So it's not an economy but a leaky bucket, dear grannma

An economy produces this bucket just leaks.

Free includes debt-free!

Does anyone have video

evidence? If the only place we find the quote on the web is the dailypaul and one other obscure source, how do we know he actually said this, and that it is not fabricated?

the quote on the video

is bernanke saying "tapering, is not tightening, the market would tank" meaning if they tightened rates (raised them) then the economy would be in trouble, not the tapering of QE. In fact he's actually saying stopping QE, or tapering it off, would NOT harm the economy. Your entire blog post here is backwards and false.

Increased rates = reduced money supply

Reduced money supply = reduction in QE.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo


you're still not getting it. Bernanke is talking about not raising rates in addition to tappering QE. They are completely separate things.

But QE will not end until deflation is fully under control.

Continue buying bonds...

$85 billion a month asset purchasing program...while reducing money supply. The results should be interesting.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

On the video

they do not indicate that ending QE would tank the economy, they mention raising interest rates (which would happen after ending QE).



"America can't afford that risk!" - Michael Dukakis, "The Tank"

http://youtu.be/BRPZQ3UEN_Q Michael Dukakis The Tank presidential campaign ad, 1988. The economy is the tank! Half minute ad.

Taxpayers can't afford tanks. But, as long as i am driving one, let me show you what this baby will do on a hill climb!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Statement Shouldn't Be Publicized

If the press were to publicize the statement that QE is all that prevents a crash, and the public believe it (and it's true so you can't blame them), then will the public support a candidate who opposes QE? I don't think we want to publicize that.

What we need to put out there is this statement: "Recovery is impossible while we're wasting so much money on war and wasteful spending, no matter how much QE we give special interests."

Or, "Any local business owner makes better economic decisions than Congress or Ben Bernanke who spend, spend, spend, or try to make us do so."

I do think we need to keep hammering the trade-off between war and peace and their effects on the economy. Those are big numbers.

What do you think? http://consequeries.com/

the press is supposed to report not consider the consequences

of their reporting

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Hate to agree

Economics are more than 50% pyschology. The belief in fiat money is all psychology. When that belief fades it will be ugly.

We have to cut overseas spending now. We have to free up capital that is consumed by non-productive sectors: gov't & subsidized industries. We need to free up small business and entrepreneurs.

Better to consciously tighten the national belt and change course than have it happen through a crash.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo


I assume downvoters prefer a crash rather than changing to a sane course of reduction in deficit spending and reducing obstructions to productive business sectors ?

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Fascinating that a statement by the Chairman of the Fed Reserve

has gone largely unnoticed and Googling a quote by the Fed chairman results in some small time Smaulgld blog showing up top in the results because major media outlets have not printed it and therefore do not show up in the Google results

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Insiders noticed

You bet they did. They have known all along. Now their hope is they have enough time to pull out of a death sprial.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Just googled the above Bernanke quote and

the daily paul and smaulgld blog post show up!
Still no mainstream media mentions!!!

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Out of curiosity

how do we then know that he actually said it?

Yep so the question is this.

Yep so the question is this. Why all the taper talk? These idiots have an agenda. It was to stop bullion banks from losing their physical gold. ABN amro defaulted, the 400.00 gold price take down was an attempt to scare people out of their physical gold and to sell. Also to help the other bullion banks. The plan backfired. Lower prices caused HUGE demand. Now they are in a worse position. QE will be added to in the near term future. All those deflationist, prechterite, Elliot wave theory cultists are about to have their heads handed to them. Many hedge funds and speculators were sucked into going short the metals. They are about to be skinned alive. Watch this short squeeze. We could visit the lows one more time to suck in an even larger short position. But this coming short squeeze is going to be one for the record books.

The economy will crash regardless of QE

The laws of economics are as strong and unyielding as the laws of physics.

"The economists did not contest the fact that a credit expansion in its initial stage makes business boom. But they pointed out how such a contrived boom must inevitably collapse after a while and produce a general depression." (Mises)

Yes, and Money is Water -- Seeking It's Own Level

The government builds levees with holes in them.

What do you think? http://consequeries.com/

The economy is weak and would crash without QE

- sounds like something Peter Schiff would say not Ben Bernanke!

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The author of the smaulgld

The author of the smaulgld article says the word "collapse" instead of tank if QE is stopped but that's exactly what this country needs....as Ron Paul calls it....a "correction". It would be severe yes but a collapse of the dollar is going to be worse. Dr. Paul told us about what President Calvin Coolidge did in the 1920/21 depression; he kept his hands off it and allowed it to happen. It was severe but lasted about a year. The situation this time is much more dire because those in power chose to kick the can down the road, making the situation much worse. But even with the severity a correction would cause, it is in the best interest of the American people.

Tom Woods has a nice You Tube talk

on the depression of 1920 that no one ever heard of http://www.youtube.com/watch?v=czcUmnsprQI

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taper because Prechter said

taper because Prechter said so! Going to be a few people eating crow here soon. This short squeeze is just getting started.

Theyll be no taper

Other than perhaps a symbolic one then it will be increased again

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whither taper talk? Bill Gross now says QE till 2016

must be some unexpected something or other than caused the fed to reconsider....

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Gold and silver up big this morning

could it be the realization that QE is basically a permanent feature of the economy along with ABenomics designed to create inflation

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