Like Geithner, Bernanke is paid to lie. Heaven forbid that he take a cue from Paul Volcker. These times can't take someone like Volcker. People want to hear the lie. Bernanke is no dummy and knows where this is heading. He is trying to manage it without riots in the streets.
Decades long of government and central banking interference has created such great distortion permanent backstopping of the system is now required to keep it afloat. Rogers says let it crash today, and yes it will hurt but that will be the bottom and we can look ahead from there on. Bernanke thinks he can steer the ship trough the meteor shower unharmed and all it takes is perceverance to take everybody home safe. Whether Bernanke is of that position by belief or because he is a puppet of the banks or whatever is probably irrelevant. It's like asking yourself why anyone killed himself. Doesnt matter since he is dead anyway. The thing is we will probably never know who is right in the end. They will never in a million years adopt the Rogers aproach and when the system comes crashing down anyway in 2018 after QE17 history will tell the crash happened because they didnt print enough money to offset the deflationary collapse.
Oh boy, they are quicker than I thought. Ben trick is less likely to work. http://www.cnbc.com/id/40000129
He will be regarded as the worst in due time, everyone will look back in this crisis and think what the fuck was this fool doing, as I said years ago the only way to fix this crisis was to let it completely fall apart and start from the beginning. Trying to fix a crisis by spending more dollars is not the answer, 0% rates is not the answer, providing tax credits for new houses and cars is not the answer, keeping the housing market from collapsing is not the answer. Propping up the economy and spending trillions to support GDP growth is not the answer. This economy has been through more bubbles in the past decade than the last 100 years. And I am tired of hearing people say inflation is tame, blah, blah, blah. Inflation is going to run rampant not only here but everywhere around the world, asset bubbles have formed and are forming around the globe, the next crisis is only maybe 2-3 years away but in the meantime everyone is going to cheer what they believe to be a turn around in this global crisis were still in.
I don't quite understand why you people are frothing at the mouth here, to be honest. At the very least, you're barking up the wrong tree, the way I see it. The Fed has an explicit mandate, according to which they're acting. This mandate doesn't mention the USD exchange rate or oil prices or anything else like this. The mandate is, however, explicitly defined through "price stability (as defined by CPI-U or timmed-mean PCE or another BLS measure) AND full employment". If you want the FOMC to stop doing all these "harmful" things, get the politicians to change the Fed mandate. Either way I don't really see why all this anger is directed at the Fed, rather than Congress. But, then again, I have said it before and nobody had a coherent explanation.
On a first glance the conspiracy theorists do not believe in Occam's razor principle. After all, all of their theories are much much more complex than the official story. To the point of absurdity. But it seems that they do use Occam's razor principle as well. Making a conspiracy theory about the FED is simpler than accusing the entire congress. Go figure....