Bernanke: We Don't Have 'Tools' to Offset 'Cliff' Dive


#1

The Fed could just keep printing endless amounts of “money,” that plan has worked so well!!

[video=youtube_share;az4uBoZx55A]http://youtu.be/az4uBoZx55A[/video]

In this excerpt from an address to the Economic Club of New York, Federal Reserve Chairman Ben Bernanke says the central bank won’t be able to single-handedly compensate for the economic harm that would be caused by the full force of falling off the “fiscal cliff.”


#2

Comments like this compel me to crunch the numbers.

First, the Federal Reserve increased currency in circulation much more in the '40s than now.

sources: FRED: CURRCIR, CPIAUCNS and PCEPI

Second, the confusion about the money supply stems from the Federal Reserve bailing out financial institutions. Depository institutions have $1.5-trillion deposited with Federal Reserve banks. Those deposits have yet to enter the economy and pose an inflationary risk unless gradually entered. The liabilities of the Federal Reserve (currency and deposits) are mostly backed by US Treasury securities (1.568-trillion) and mortgage securities (852-billion).

sources:
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – November 08, 2007
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – November 13, 2008
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – November 12, 2009
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – November 12, 2010
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – November 10, 2011
FRB: H.4.1 Release-- Factors Affecting Reserve Balances – Thursday, November 08, 2012


#3

As was mentioned in another thread, the 40’s happened to be the era of World War II.


#4

(deleted) Norm, give that crap up, aren’t you tired of being a one note wonder…is this the ONLY thing you know…you are like the guy in the audience at a Country and Western concert…you keep yelling for the same song to be played even after Toby Keith played once already.

Hey MODS, how about taking ole Norms post and making it a sticky and then lockin the thread, maybe that way he can find another song to request.

We got some bars down here you may not wanna stop in…Take the ole Rattlesnake Bar out there on Hwy 191, hell the Army put that place off limits. They got a hurricane fence between the music stage and the audience and it AIN’T to keep the audience from the band!!!