Willem Buiter, chief economist at Citigroup, (talk about biting the hand that feeds you), refers to Bernanke as a coward thief due to his stealing from the US middle class, savers and retirees via his money printing, ZIRP, etc. The coward part comes from the denial from the Fed that they are manipulating the currency, devaluing the US dollar as other nations taking part in the same currency manipulation as Bernanke, do it openly. Mr. Buiter also states unequivocally that "savage austerity" is in the US's future:
http://www.zerohedge.com/article/willem-buiter-us-must-prepare-savage-austerity
Speaking to QE2, the amount there of, Bernanke muses: "Mr. Bernanke uses the analogy of a golfer with a new putter: Unsure how it will work, he finds best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter."
http://online.wsj.com/article/SB10001424052702303891804575576533845166848.html?mod=WSJ_hp_LEFTTopStories
Well respected investment strategist, Jeremy Grantham, does not refer to Bernanke as a coward thief, just as a "dangerous manipulator of capitalism". But, Mr. Grantham does refer to Treasury Secretary Geithner as being placed at the "scene of the crime in New York and whose fingerprints were on the murder weapon." as he writes "Let me make a simple point for all of those who decry any and all governmental interference: in my opinion, capitalism has been manipulated far more, and more dangerously, by the last two Republican-appointed Fed bosses than everything else added together. It is naive, if fashionable, to blame the rather lame current Administration for all of our problems. They inherited a cake already baked or, better, “half baked,” and the master bakers were the current and former Fed bosses, and the underbaker (not quite an undertaker, but nearly) was Hank Paulson with his “contained” sub-prime crisis. Aided by Timothy Geithner at the New York Fed, they first did absolutely nothing for two years and then laid the groundwork for a bailout, the scale of which neither Democrats nor Republicans had ever dreamed! And of all the many mistakes of the current Administration, the worst, in my opinion, are directly related to this fiasco: the inexplicable choice of Geithner, who was actually placed at the scene of the crime in New York and whose fingerprints were on the murder weapon"
Blaah! So we have two very well respected public figures, one refers to Bernanke as a "coward thief" and the other refers to mop headded Timmy as being complicit in a crime, fingerprints on the murder weapon. Mr. Grantham continues: "Quantitative easing is likely to turn out to be an even more desperate maneuver than the typical low rate policy. Importantly, by increasing inflation fears, this easing has sent the dollar down and commodity prices up." Grantham is saying that due to lack of end demand in the US, money printing is a more desperate maneuver by forcing newly printed dollars into commodities and emerging market currencies.
Grantham writes how the hypocrisy of the Obama administration hurts the global economy: "Just remember, even as we fulminate against China – and they are pretty good villains in this part of the game – the dollar is underpriced in purchasing parity terms, and yet the U.S. government is far from having even a neutral position on the dollar. We are still obviously encouraging a further decline. This, unfortunately makes our perhaps justified complaints against China seem hypocritical."
http://www.zerohedge.com/article/willem-buiter-us-must-prepare-savage-austerity
Speaking to QE2, the amount there of, Bernanke muses: "Mr. Bernanke uses the analogy of a golfer with a new putter: Unsure how it will work, he finds best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter."
http://online.wsj.com/article/SB10001424052702303891804575576533845166848.html?mod=WSJ_hp_LEFTTopStories
Well respected investment strategist, Jeremy Grantham, does not refer to Bernanke as a coward thief, just as a "dangerous manipulator of capitalism". But, Mr. Grantham does refer to Treasury Secretary Geithner as being placed at the "scene of the crime in New York and whose fingerprints were on the murder weapon." as he writes "Let me make a simple point for all of those who decry any and all governmental interference: in my opinion, capitalism has been manipulated far more, and more dangerously, by the last two Republican-appointed Fed bosses than everything else added together. It is naive, if fashionable, to blame the rather lame current Administration for all of our problems. They inherited a cake already baked or, better, “half baked,” and the master bakers were the current and former Fed bosses, and the underbaker (not quite an undertaker, but nearly) was Hank Paulson with his “contained” sub-prime crisis. Aided by Timothy Geithner at the New York Fed, they first did absolutely nothing for two years and then laid the groundwork for a bailout, the scale of which neither Democrats nor Republicans had ever dreamed! And of all the many mistakes of the current Administration, the worst, in my opinion, are directly related to this fiasco: the inexplicable choice of Geithner, who was actually placed at the scene of the crime in New York and whose fingerprints were on the murder weapon"
Blaah! So we have two very well respected public figures, one refers to Bernanke as a "coward thief" and the other refers to mop headded Timmy as being complicit in a crime, fingerprints on the murder weapon. Mr. Grantham continues: "Quantitative easing is likely to turn out to be an even more desperate maneuver than the typical low rate policy. Importantly, by increasing inflation fears, this easing has sent the dollar down and commodity prices up." Grantham is saying that due to lack of end demand in the US, money printing is a more desperate maneuver by forcing newly printed dollars into commodities and emerging market currencies.
Grantham writes how the hypocrisy of the Obama administration hurts the global economy: "Just remember, even as we fulminate against China – and they are pretty good villains in this part of the game – the dollar is underpriced in purchasing parity terms, and yet the U.S. government is far from having even a neutral position on the dollar. We are still obviously encouraging a further decline. This, unfortunately makes our perhaps justified complaints against China seem hypocritical."
Grantham smells Bernanke's desperation: "Thus, our current policy of QE2 is merely the last desperate step of an ineffective plan to stimulate the economy through higher asset prices regardless of any future costs. Continuing QE2 may be an original way of redoing the damage done by the old Smoot- Hawley Tariff hikes of 1930, which helped accelerate a drastic global decline in trade. We may not even need the efforts of some of our dopier Senators to recreate a more traditional tariff war." Much more damning's of Bernanke's blatant manipulations in the entire paper. Sixteen pages. PDF: http://www.gmo.com/websitecontent/JGLetter_NightofLivingFed_3Q10.pdf
Bernanke and Geithner have no credibility and even less respect throughout the world. Hintings of capital controls, currency manipulations begin post G-20 meeting, though statements from the G-20 said no capital controls or currency manipulations: "Kim Choong Soo said today that measures to mitigate capital flows could be “useful.” Hours later, the rand dropped as South African Finance Minister Pravin Gordhan said his government will use part of higher-than-expected tax revenue to build foreign reserves as it attempts to weaken the currency."
These contradictory actions explained: “The G-20 made a vague pledge not to manipulate currencies much, but there was no mechanism to ensure that each country will not keep taking unilateral measures,” said Win Thin, global head of emerging markets strategy at Brown Brothers Harriman & Co. in New York. “It’s every man for himself.” And: " Bank Indonesia will “guard” the rupiah at its “fundamental”. Europe says dollar is undervalued, Europe is the victim "While he didn’t advocate action by European governments, Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, also said today the dollar is “undervalued” against the euro. “Europe is the victim” of global currency policies, Juncker said at a conference in Frankfurt."
Bernanke foolishly refers his QE2, money printing antics as a game: "Mr. Bernanke has used the analogy of a golfer with a new putter: Unsure how it will work, he finds best strategy is to tap lightly at first and keep tapping until the golfer figures out how best to use the putter." As Kansas City Federal reserve Bank president Hoenig sees it a much different light: " Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said Monday that more expansive monetary policy was a "bargain with the devil."
Bernanke receives no love from the Brits as his actions are called " very dangerous" : "Simon Ward from Henderson Global Investors said his measure of velocity is rising at a robust rate of 8.7pc. “QE1 was justified during the crisis because monetary velocity was collapsing at that time. But now that velocity is recovering further QE is not needed. In fact it is potentially very dangerous,”
This writer is not fooled as they see QE2 for what is really is, a transfer of public funds into private hands i.e. the US TBTF institutions: "There is no other possible conclusion then that all QE can possibly achieve today, effectively, is the transfer of public funds into private hands. And that that is all it's meant to do."
http://theautomaticearth.blogspot.com/2010/10/october-26-2010-can-qe2-save-banks.html
The global drumbeat questioning Bernanke's motive's regarding QE2 continue unabated. Allies and enemies alike, from US based investment strategists to South Korean and South African bankers appear stupefied by to Bernanke's actions. Yet, as a coward thief in the night, playing with his own putter, Bernanke soldiers on. This might get very interesting. Stay tuned.
The global drumbeat questioning Bernanke's motive's regarding QE2 continue unabated. Allies and enemies alike, from US based investment strategists to South Korean and South African bankers appear stupefied by to Bernanke's actions. Yet, as a coward thief in the night, playing with his own putter, Bernanke soldiers on. This might get very interesting. Stay tuned.