|The Daily Show With Jon Stewart||Mon - Thurs 11p / 10c|
|The Big Bank Theory|
For new readers who may have missed this the first time around.
Daily Show Video - Runs 3 Minutes - Aired Dec. 7, 2010
Quotes are transcribed below. Bernanke defeated by his own words. Stewart annihilates the Helicopter's claim that he's not printing money.
Watch Bernanke's original 60 Minutes appearance here:
Bernanke's latest 60 Minutes interview juxtaposed against his previous 60 Minutes interview, when the Chairman said he was printing money - the only difference between now and then - the Fed was buying corporate assets and now it's buying government bonds.
PELLEY Is that tax money that the Fed is spending?
BERNANKE It's not tax money. the banks have-- accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed. So it's much more akin to printing money than it is to borrowing.
PELLEY You've been printing money?
BERNANKE Well, effectively, yes. And we need to do that, because our economy is very weak and inflation is very low. When the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation.
BERNANKE: "One myth that's out there is that what we're doing is printing money. We're not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way. What we're doing is lowing interest rates by buying Treasury securities. And by lowering interest rates, we hope to stimulate the economy to grow faster. So, the trick is to find the appropriate moment when to begin to unwind this policy. And that's what we're gonna do."
DB here. Any questions? Bernanke's a liar and he thinks that no one is paying attention. Here's an idea - make Chris Whalen Fed Chairman, and Josh Rosner Treasury Secretary. Then send Bernanke back to Princeton as a custodial engineer, and give Geithner a job on the set of CBS Survivor cleaning latrines. As much shit as they've shoveled since 2008, the transition for both should go smoothly.