Community | April 24, 2010 | 49 comments

Bernake admits to printing 1.3 trillion dollars out of thin air.

source: http://usawatchdog.com/bernanke-admits-printing-1-3-trillion-out-of-thin-air/#more-1642

missionaryhunter
Fed Chairman Ben Bernanke admitted the central bank created $1.3 trillion out of thin air to buy mortgage backed securities. This shocking admission came from the Joint Economic Committee hearing on Capital Hill last week. I was dumbfounded when I saw Bernanke shake his head in the affirmative as Representative Ron Paul said, “Well, where did you get the money? You created this money. So you did monetize debt, and that went into the banking system.” I was amazed he admitted this. I looked up the original hearing on C-Span to make sure the clip was not edited. It was not.

What is even more shocking is I could not find a single mainstream news agency that covered this revelation. Congress just finished voting on the bitterly contested Obama health care bill that is supposed to cost nearly a trillion dollars over ten years. (Some contend it will be more than twice that amount.) The mainstream media doesn’t even bat an eye over the Fed creating $1.3 trillion in a little more than a year to buy worthless debt no one else will touch. I do not get it. I guess we could have asked the Fed to print up a trillion dollars to pay for health care and avoided that drawn out battle in Congress.

Then, Rep. Paul brings up printing another $105 billion to bailout Greece. Bernanke answers by saying, “. . . I think one of the agreements that the G20 leaders came up with was sort of a mutual commitment to put more money into the IMF as a way of addressing the financial crisis around the world. . .” Notice how Bernanke used the term “mutual commitment.” I think what that really means is an agreement between all the G-20 nations of a “mutual debasement of their currencies.” I think this is why gold has been rising in price around the globe. I have been saying for months that we are going to have some very big inflation. (Real inflation is already at 9.5% according to shadowstats.com.) I wrote about this last November in a post called “The Fix Is In.”

I think Bernanke just opened the Fed playbook and revealed money will be printed to fix all financial problems. I don’t think he’s even trying to hide it anymore. Rep. Paul also brought up the big debt trouble coming soon with many, many bankrupt cities and states such as Los Angeles and California. I think they will all be bailed out one way or another by the printing press.

New York Fed President William Dudley seems to be on the same page as his boss. Dudley recently said, “The fact that our foreign indebtedness is for the most part denominated in our own currency is a huge advantage in the event the dollar were to come under significant downward pressure.” (Zero Hedge has a complete text of Dudley’s speech, click here) Is Dudley making a not so subtle hint about devaluing the U.S. dollar? Once again, I say yes.

Anyone with a savings account or money market denominated in dollars should be terrified. You have scrimped and saved only to have the Fed print money and devalue what you have worked so hard for! Inflation has been chosen for you by the Federal Reserve, and we the taxpayers can’t even audit its actions. Below is the video from the Joint Economic Committee Hearing last week. Watch for yourself Bernanke nod yes to printing $1.3 trillion.
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49 comments // Bernake admits to printing 1.3 trillion dollars out of thin air. // Video

  • Ragan
    • 0
      Ragan  

    • Bernanke and the entire Federal Banking system is arrogant. Firstly the Federal Bank System owns the entire Government. They increase their wealth by printing more money and increasing inflation thus devalueing the dollar. No matter what the interest rates are the Tax payers must work to repay every cent the Feds prints and that is unconstitutional, simply because we should be paying into our own treasury instead of the Federal Reserve system. The Federal Reserve system never loses money since they do not need money they have a 100 mile deep of air that surrounds our planet and that is their dollar standard.

    • 2 years ago
  • oppressed1
    • 0
      oppressed1  

    • Everyone should watch "the dollar bubble" on google video. The part on hyper inflation is a bit of a stretch, but it does a great job of explaining how un reliable our dollar is becoming.

    • 2 years ago
  • NothingIsAbsoluteTruth
    • 0
      NothingIsAbsoluteTruth  

    • they can create money out of thin air because they control money flow. No one covers it because its been going on ever since central banks have been created. They dont want the citizens to know they are slaves and they dont even know it...

    • 2 years ago
  • 2helenahandbasket
  • Maeveeo
  • Ragan
    • +3
      Ragan  

    • For years we have heard of people being sent to prison for printing money and the FEDS jump into action and arrest and indict and after not when found guilty are sent to prison for many ryears. But the FED has the right to counterfeit money from thin aiir? Its a little bit hipocritic to allow the Federal Reserve to print funny money at their whim. Also since the Federal Reserve is not a Federal agency, why not force then to change their name to the Central Bank as they certainly are. It should be time soon to bring Civilian charges against many or most of the officials in Washington working for Corporate international and creating a povery ridden slave populace. Because they are sworn to uphold the constitution and yet they do as they please. They have turned America into a lawless police state.

    • 2 years ago
  • artemis6
  • neocongo
  • shanklinmike
  • neocongo
  • bbar
  • oppressed1
  • bailey78
  • shanklinmike
    • +1
      shanklinmike  
    • bailey78:

      Remember, politicians can bribe you for your vote but you can't bribe them....

      It's called a double standard, this is politics as usual...just wait till everyone finally realizes we're bankrupt....

    • 2 years ago
  • meddelem
    • +2
      meddelem  

    • HEMP has been an economic base for thousands years!

      Henry ford knew it.
      Napoleon knew it.
      Adolph knew it,
      The Ming Dynasties..
      And even Dr. Paul kNows it...

    • 2 years ago
  • shanklinmike
  • WarrenOatesLives
  • shanklinmike
  • shanklinmike
  • observer2121
    • +2
      observer2121  

    • Every single dollar printed in this country was printed out of thin air. Money is backed by the governments ability to collect taxes and it's promise to pay. The united states does not back it's money with gold or silver. This article is just so stupid. Bernanke could easily have said all the money we print is created out of thin air. You idiots who have a problem obviously don't understand a damn thing.

    • 2 years ago
  • bbar
    • +3
      bbar  
    • observer2121:

      Before you start talking about things that you don't understand, you should familiarize yourself with the history of ancient Greece, the Roman Empire and the Byzantine Empire (after the Roman Empire Split). Then you will have scratched the surface on the dangers of currency debasement. If you want a more current example, look at the demise of the Soviet Union. Then, come back here and we can chat.

      This should get you started: http://www.weberglobal.net/Historyofmoneycompleter.pdf

      Oh, and you're wrong about this:

      "Every single dollar printed in this country was printed out of thin air."

      Pre abandonment of the bretton woods agreement in '71, printed money actually had value (to some extent anyway).

    • 2 years ago
  • missionaryhunter
  • irie_ojo
    • +2
      irie_ojo  

    • down with the federal reserve......we are all fuck if things dont change, the fed reserve runs our nation. not the prez or congress. MONEY is POWER.

      am i the only one that thinks it is fucked up that we pay interest (through fed income tax) to the fed reserve for every dollar in circulation, which is no longer backed by gold or any other hard currency.....

      so in the end do they then collect interest on the 1.3 trillion? if so it sounds like a solid way to make money...but we will never know b/c they cant be audited.

      can it be that, if we keep printing money for other countries problems as well as our own, the dollar will become so weak that the usa will be bankrupt as well.

      the NWO is just waiting for the opportunity.

      and who says all republicans suck...Ron Paul kicks ass.

    • 2 years ago
  • observer2121
    • -2
      observer2121  
    • irie_ojo:

      Grow up. Just to humor you why should money be backed by gold or some other metal that can be dug up from the ground? What intrinsic value does gold have? If a huge hurricane or natural disaster occurred and the financial system was wiped out would having gold in your pocket do you any good? Gold is just old fashioned money, it doesn't really have any value at all. Money backed by gold is no more valuable than money backed by the governments taxing authority and ability to pay.

    • 2 years ago
  • irie_ojo
    • 0
      irie_ojo  
    • observer2121:

      gold does have value and has for thousands of years....its rare and hard to obtain, thus giving it a value....where as paper is everywhere.

      if the financial system was wiped out and we were back to a barter system...yes i believe gold will have more power than a piece of paper that our govt says is valuable.

    • 2 years ago
  • observer2121
    • 0
      observer2121  
    • irie_ojo:

      Golds only value is the value we decide to give it. Paper money is not valuable because of the paper it is printed on, it is valuable because of what it represents, the promise of the US government to settle the debt. Do I really have to explain this to you?

      The value we give gold today has nothing to do with how rare it is. Gold prices have skyrocketed in recent years, do you think it has all of a sudden become more rare.

      By the way, I said gold has no intrinsic value, I did not say it has no value. Do you know the difference? Let me explain, if I were to take gold to a a regular bank, they would say this has value and they would be willing to give me money according to that day's price of gold on the markets. In this instance gold has value only because we as a society have decided to give it value. However intrinsic value is different. If things went back to a barter system as per your example do you really think a person would accept gold in exchange for a cow that produces milk? Of course not, what if he took that gold and no one else would exchange anything for it, what would he do with it? This is a simplified example that shows you that gold has very little intrinsic value, it is virtually worthless when it comes to survival. For this reason it is no different than paper money, paper money is worth whatever we say it is just the same as gold.

    • 2 years ago
  • irie_ojo
    • 0
      irie_ojo  
    • observer2121:

      i understand the whole things are only valued by the value they are given. and yes i agree that when it comes down to gold or milk, milk will win. but there will also come a time when currency will be needed again and gold will still be here far after a paper currency that the govt says is worth something.

    • 2 years ago
  • Dagum
  • AmericanStandard
  • observer2121
  • bbar
  • observer2121
    • -1
      observer2121  
    • bbar:

      All you losers ever cry about are things that haven't happened. Social Security has not gone bankrupt. You are like those cults that come along every few years claiming that the world is going to end. Yes social security is in trouble but the problem will be solved just like we solve other problems in this country. If we have to we will cut military spending, we could probably take care of the whole deficit in a few years if we would just cut military spending. My point is that you can't live your life in fear of what might happen. You just do the best with what you have today. We don't let our old people go hungry or die needlessly and for that reason we need medicare and social security, that's just the American way buddy, we take care of our citizens.

    • 2 years ago
  • bbar
    • +2
      bbar  
    • Image
    • observer2121:

      Sorry for thinking about the future. I realize now after your ingenious comments that I should never do that.

      "Yes social security is in trouble but the problem will be solved just like we solve other problems in this country."

      That's the problem. Christ.

      "...that's just the American way buddy, we take care of our citizens."

      http://en.wikipedia.org/wiki/Tent_city

      "We" take care of the corporation.

    • 2 years ago
  • AmericanStandard
    • +1
      AmericanStandard  

    • I don't understand why the TS is so surprised that big Ben acknowledges that the money is created from thin air. Anyone who knows how the system works knows that the fed can monetize any debt and make anything look like an asset on their books. As RP said we cant audit them, lord knows how much of this has happened.

    • 2 years ago
  • artemis6
    • 0
      artemis6  

    • HOLY . SH*T . It is worse than I thought . Well , thanks for this post , at least I know . Tell your friends , silver might be better than cash ...... At least it might maintain it's value .

    • 2 years ago
  • observer2121
  • bbar
  • observer2121
    • +1
      observer2121  
    • bbar:

      Actually anyone with enough money can manipulate gold and silver prices. I am more worried about these huge hedge funds who have the money to do it than I am about governments.

    • 2 years ago
  • bbar
  • artemis6
    • 0
      artemis6  
    • observer2121:

      This is true , however what will become the underground currency , the black market currency ? The untraceable currency of pirates ? Food , Drinkable water fine wines and ........?

    • 2 years ago
  • missionaryhunter
    • +2
      missionaryhunter  

    • My favorite part of the article is right here:

      "Congress just finished voting on the bitterly contested Obama health care bill that is supposed to cost nearly a trillion dollars over ten years. (Some contend it will be more than twice that amount.) The mainstream media doesn’t even bat an eye over the Fed creating $1.3 trillion in a little more than a year to buy worthless debt no one else will touch. I do not get it. I guess we could have asked the Fed to print up a trillion dollars to pay for health care and avoided that drawn out battle in Congress."

      It has confirmed the sad truth to me: It's all a game. Except it is a game in which if some people stop playing, they die hungry. Others can do as they please. Strange.

    • 2 years ago
  • observer2121
    • 0
      observer2121  
    • missionaryhunter:

      You seem to be against people dying and yet you also seem to be against the healthcare bill which insures 30 million more people and tries to prevent them from dying. I don't really understand your position. Are you saying that you want people to live but you just don't want to have to pay to keep them alive?

    • 2 years ago
  • irie_ojo
    • +1
      irie_ojo  
    • observer2121:

      i guess people interpret things differently... b/c i think "missionaryhunter" point is that the govt can make 1.3 trillion dollars to bail out the banks but wont do it to provide health care to it's citizens. that's the game and money is the objective. banks make money...money is power....so grow up

    • 2 years ago
  • WarrenOatesLives
  • observer2121
  • observer2121
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