Sunday, February 26, 2006

Bernanke Says Keeping Inflation Low By Shipping Our Money (and manufacturing jobs!) To China Creates Jobs Here

By Elaine Meinel Supkis

I warned everyone that Bernanke is an idiot. He celebrates the destruction of our manufacturing base, claiming that shipping jobs to China to scrub inflation due to energy hikes creates jobs here in America. Alas, the jobs created are also not "inflationary" since no one can ask for or get pay raises! Great. Sounds like a depression.

Ben Bernanke, in his first public speech as Federal Reserve chairman, laid out a scholarly case Friday that keeping inflation low and stable tends to foster economic growth and jobs.

This sensibility — now largely a consensus view — marked an evolution in economic thinking, Bernanke said in remarks at Princeton University in New Jersey.
A bunch of white males in their pretty ivory treehouse. Oh, how very happy they are! One reason not one of the liberal economic bloggers who know me via my comments at their sites (I really no longer bother with them, they are so out of touch with reality!) don't quote me at all is because of my ferocious attacks on their fraternity.

Well, I predicted from my very first article about Bernanke that he would be both insane as well as ill-informed. He is going to finish us off. We are so very doomed thanks to this idiot.
"Central bankers, economists and other knowledgeable observers around the world agree that price stability contributes importantly to the economy's growth and employment prospects," he said. "But that view did not always command the support it does today."
Well, he better consult with me! Or read this story of mine!

Price stability exists? What the farking hell? I see none, none at all!

All fundamental prices are going up and up and up in dollar value. The M3 figures show the government printed up more than $700 billion dollars out of thin air and this matches, nearly, our trade deficit. These dollars didn't drive up the price of cars or planes because of oversupply keeps prices down and since most people had to pay cash for these things, there was less demand despite the flood of new dollars but...the big but!---this $700 billion has come home to roost in the form of loans which have shot through the roof.

More Americans are deeper into debt. The inflation beast moved into our livingrooms and we greeted it with joy for it said, "Feed me and I will make you rich!" So we played this merry-go-round and now the money is stopping because the dollar is losing value on all fronts and not due to excessive production, either, but due to excessive creation of dollars ...BY THE FED ITSELF!

The only way to hide this severe deterioration of over 50% value, our trading partners who all run surpluses vis a vis the USA have conspired to feed us our own money back into our system via home loans. This is coming to an end, though, for finanical and political reasons.

China, for example, is now switching direction. It will continue to feed the American beast a tiny bit more until they get their aerospace factories humming then they will dump us. Already, after our government nixed American aerospace ventures in China, forcing them to eat the inflation at home which is killing their profits despite frantic efforts to kill the unions and reduce wages by 50%, Airbus of Europe has decided to build factories in China to rid them of inflation and viola!

China doesn't need us anymore. Kiss the "no inflation" miracle ta-ta.

Here is an example of the great jobs Greenspan and Bernanke have created thanks to their stupid "no inflation" policies:From the Sun Herald of Duluth:
When Lisa Koch asked several people at a Chicago soup kitchen to complete a survey of the people who eat there, she got a surprising response: "They asked how long it would take because they had to get back to work after lunch."

A national survey of people eating at soup kitchens, food banks and shelters found that 36 percent came from households in which at least one person had a job. In the Chicago area, it was 39 percent.

"Even though the economy might be changing, it isn't creating the kinds of jobs that allow people to make ends meet," said Koch of the Greater Chicago Food Depository.

More than 25 million Americans turned to the nation's largest network of food banks, soup kitchens and shelters for meals last year, up 9 percent from 2001, says the report by America's Second Harvest.
Isn't it pathetic? Alms for the poor! Alms for the poor! Of course, smug, silly Bernanke doesn't care, at no time in his besotted life did he have to worry his pretty little bearded face over things like job instability and low pay and give backs. Every seven years, a year's holiday. Huzzah! Pip pip and all that.
The surveys were done before Hurricanes Katrina and Rita hit the Gulf Coast in 2005. After the hurricanes, demand for emergency food assistance tripled in Gulf Coast states, according to a separate report by the group.

The new report, being released today, found that 35 percent of people seeking food came from households that received food stamps. Cousin said the numbers show that the government program, while important, is insufficient.
Thank the GOP for that! They have been cutting food stamps ruthlessly.

Many workers from the Deep South are still shattered by the hurricanes and have no jobs because even though their jobs are available in New Orleans, there is no housing or infrastructure for them. This is driving them literally insane. From Agence France Presse:
It has been six months since he stood guard in the lobby of the hotel his wife managed, using the flashlight mounted on his shotgun to fend off looters who rattled at the glass doors as his daughters slept uneasily upstairs.

Six months since he carried a man who had been savagely beaten to the Convention Center, only to be told by police that there was nothing they could do but let the man die.

Six months since his faith in his country was shattered.

But he has not been able to let go of the fear. And the anger. And the pain.

"I don't go out of my house a lot," he said as he sat behind his computer, his once muscle-bound frame softened by the loss of 28 pounds (13 kilograms). "I can't stand to be in crowds. It makes me very nervous."
His wife is working but he isn't. And she makes nearly no income beyond what covers their barest necessities. The landlord wants rent on an unihabitable house merely because they parked their FEMA trailer there. No one is fixing anything because it is unfixable. I know, I restore old buildings. After a flood, they have to be stripped to the studs!

And in New Orleans, that isn't enough. For it is a termite heaven there and even if the wood looks like it is dry, it isn't and the bugs love wood that is wet in the core. They eat it up in no time flat. All the flooded houses, even if rebuilt, are doomed to fall apart rapidly thanks to termites.

It is like our economy. Termites busily eating away the foundation. Dry rot in the attic and the roof has holes in it and the next hurricane is filing her fingernails right now, over Africa. When the prevailing winds west begin to blow in the Sahara, as the earth shifts past the equinox, we are going to see much more devastation this year, much more.

Already, there was a report today that the fish in North Carolina suddenly scrambled up from the deep because of lack of oxygen, beaching themselves by the thousands just like they did all summer long in the Gulf. A bad sign, that. And it is still February!

Speaking of fish floundering ashore! From Energy Bulletin:
Bourse Director Sven Arild Andersen is fed up with Norwegian oil having to be traded in London and wants to have a commodities and energy bourse in Norway.

The Bourse Director believes that Norway already has the prerequisites for building up a Norwegian or Scandinavian energy bourse.

"This would in such case compete with the bourse in London. Why not have the ambition to outcompete the British petroleum bourse," says Sven Arild Andersen.

"Here, you could trade crude oil, natural gas contracts and establish derivatives for these products."

"In addition, we must set up a larger financial industry around this, as important in other large markets and employ many people. And which are important for the competencies that are needed beyond the extraction itself of oil and gas," says Andersen.

In Euros.
We invaded Iraq for this very thing. We are already snarling at Norway, demanding they kow tow to the mighty dollar and to obey us in our crusade against the Muslim world. But here they are, yet another country dropping the oil dollar.

This is fatal to us. We know the dollar is essentially worthless, it lost over 50% of its real value this year and will drop even more, next year, since our trade deficit totally stinks, due to the need to export our jobs to hide inflation! Gack.

Venezuela is mulling doing this and if Norway and Iran do it, Venezuela will, too. This leaves only the corrupt kings and sheiks of the Gulf kingdoms, supporting the dollar. Already, Putin has said, Russia is very happy to switch over to euro pricing!

Once China declares this, boom!

The Chinese already have extended business deep into the European Union. Soon, they won't need us as customers or rather, we can buy but only via euros! We stupidly let the euro soar in value, we laughed that this would make us billionaires but not in the sense of Weimar billionaires.

Well, that was a dumb idea. We fixed nothing by letting the euro soar and now we will literally pay the Pied Piper of Hamlin.

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