World-News

Liberty & Power
by Jeffrey Rogers Hummel

10/25/08

Many believed that Ben Bernanke had begun pumping up the money supply as early as the end of last year in response to the financial situation. But in fact, the Fed did not actually open the monetary spigots until a little over a month ago. Up until then, Bernanke effectively sterilized all his monetary injections, either by directly trading Treasuries from the Fed’s portfolio for riskier financial securities, or by indirectly loaning to financial institutions with money recouped by selling Fed-held Treasuries on the open market. Either way, there was no major impact on the monetary base. As a result, the annual rate of growth of the monetary base remained in the neighborhood of 2 percent through August 2008, whereas total bank reserves remained virtually constant...

http://hnn.us/blogs/entries/56095.html



The velocity of worthless money

Asia Times
by Richard Daughty

10/25/08

I couldn’t believe my eyes when I saw Federal Reserve chairman Ben Bernanke refusing to discuss the size of a proposed fiscal stimulus in the form of the government again sending out money to taxpayers, which he had just recommended that the US Congress do! He thinks it is a good idea to send out the money, and such a thing would have a whopping huge impact on his whole economic theory encompassing the standard economic theory of idiotic neo-Keynesian, econometric, deficit-spending crapola and outright socialism...

http://www.atimes.com/atimes/Global_Economy/JJ25Dj01.html


Informant: Thomas L. Knapp



http://freepage.twoday.net/search?q=Bernanke
http://freepage.twoday.net/search?q=Federal+Reserve
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http://freepage.twoday.net/search?q=Keynesian
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