Fed Chairman Ben Bernanke testifies before Congress

BROOKINGS, Ore. - May 22, 2013 - PRLog -- Fed Chairman Bernanke testified before Congress that the Federal Reserve will continue to purchase $85 billion dollars of bonds per month and monetize the national debt. This will allow the Obama administration to continue to pay people not to work, and to send out unemployment and disability checks. The Fed will create additional money until those people decide to stop getting free money, decide to get a job, and unemployment drops.

He said despite the massive printing of money, inflation is still low, because he was fighting a recession caused by the last boom, which in turn was caused by the same reckless bubble he was now attempting to duplicate.

Bernanke also said the economic recovery was slow because of the huge national debt which now equals current GDP. Because the economy is slow, he would help the government issue more debt, buy most of the debt himself, by making a computer entry, and creating money out of thin air. This way he would not face the same problem the Zimbabwe Fed faced, in that the money printers would not accept paper money in payment, because of the high cost of ink and paper. He said he was not concerned about creating a bond bubble, because he could never see bubbles until they were completely obvious.

18th century economist Fredric Bastiat said the purpose of the Law is to stop plunder. Ludwig von Mises said socialist government programs lack the guiding rudder of the market place. It logically follows, according to Johnston’s law, “Whatever a tax supported agency attempts to do, beyond the true purpose of government, the opposite occurs in proportion to the amount of money expended.” Therefore it follows the more money spent on QE, the more damage will be done to the long term employment market.

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