{"id":19922,"date":"2016-04-14T11:39:45","date_gmt":"2016-04-14T16:39:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19922"},"modified":"2016-04-14T11:39:45","modified_gmt":"2016-04-14T16:39:45","slug":"bernankes-new-helicopter-money-plan-sheer-destructive-lunacy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19922","title":{"rendered":"Bernanke\u2019s New Helicopter Money Plan\u2014\u2014-Sheer Destructive Lunacy"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/bernankes-new-helicopter-money-plan-sheer-destructive-lunacy\/\">Bernanke\u2019s New Helicopter Money Plan\u2014\u2014-Sheer Destructive Lunacy<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<p>If you don\u2019t think the current central bank driven economic and financial bubble is going to end badly, recall a crucial historical fact.\u00a0To wit, the\u00a0worldwide\u00a0race\u00a0of central banks to the zero bound and\u00a0NIRP and their $10 trillion bond-buying spree\u00a0during the last seven years\u00a0was the brain child of Ben S Bernanke.<\/p>\n<p>He\u2019s the one who falsely insisted that Great Depression 2.0 was just around the corner in September 2008. Along with Goldman\u2019s plenipotentiary\u00a0at the US Treasury, Hank Paulson,\u00a0it was Bernanke who\u00a0stampeded the entirety\u00a0of Washington into tossing out the window the whole\u00a0rule book of sound money, fiscal rectitude and free market\u00a0discipline.<\/p>\n<p><em><strong>In fact, there was no extraordinary crisis<\/strong><\/em>. The\u00a0Lehman failure essentially triggered a self-contained leverage and liquidity\u00a0bust in the canyons of Wall Street, and it\u00a0would have burned out there had the Fed allowed money market interest rates to do their work. That is, to rise sufficiently to\u00a0force into liquidation the gambling houses like Lehman, Goldman and Morgan Stanley that had loaded their balance sheets with trillions of illiquid or long-duration assets and funded them with cheap overnight money.<\/p>\n<p>There would have been no significant spillover effect. The\u00a0notions that the financial system was imploding into a black hole and that ATMs would have gone dark and money market funds failed\u00a0are complete urban legends. They were\u00a0concocted by Wall Street to panic Washington into massive intervention to save their stocks and partnership shares.<\/p>\n<p>The same\u00a0is true of the claim that\u00a0corporate payrolls would have been\u00a0missed\u00a0for want of revolving credit availability and\u00a0that the entirety of AIG had to be bailed out to the tune of $185 billion in order to protect insurance and annuity\u00a0holders.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bernanke\u2019s New Helicopter Money Plan\u2014\u2014-Sheer Destructive Lunacy If you don\u2019t think the current central bank driven economic and financial bubble is going to end badly, recall a crucial historical fact.\u00a0To wit, the\u00a0worldwide\u00a0race\u00a0of central banks to the zero bound and\u00a0NIRP and their $10 trillion bond-buying spree\u00a0during the last seven years\u00a0was the brain child of Ben S [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[68,2120,303,3920,383,5981,536,3650,860,865],"class_list":["post-19922","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ben-bernanke","tag-david-stockman","tag-fed","tag-financial-bubble","tag-great-depression","tag-helicopter-money","tag-money","tag-us-federal-reserve","tag-wall-street","tag-washington"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19922"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19922\/revisions"}],"predecessor-version":[{"id":19923,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19922\/revisions\/19923"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}