Caught In A Lie: Bernanke Promised Congress The Federal Reserve Would Not Monetize The Debt But Now That Is Exactly What Is Happening
On June 3rd, 2009 Federal Reserve Chairman Ben Bernanke promised the U.S. Congress that the Federal Reserve would not monetize the debt of the U.S. government. On November 3rd, 2010 the Federal Reserve announced a massive quantitative easing plan which will involve the purchase of 600 billion dollars of U.S. Treasury securities by the middle of 2011. Creating 600 billion dollars out of thin air and using them to buy up U.S. government securities is monetizing the debt. So Federal Reserve Chairman Ben Bernanke has been caught in a lie. Will we ever be able to trust a single word that he says ever again?
Monetizing the debt is a desperate act. It is a signal that we are rapidly reaching the end of the game. Slamming interest rates all the way to the floor did not revive the U.S. economy. Hundreds of billions of dollars in extra government spending did not do the trick either. The U.S. economy is still dying and the U.S. government is now beginning to find it very difficult to locate buyers for all the debt that it is constantly issuing.
So the Fed apparently hopes that this new round of quantitative easing will be a way to finance the exploding U.S. government debt and spark an “economic recovery” at the same time.
But didn’t Bernanke promise that the Fed was not going to do this?
Didn’t he pledge to Congress that the Federal Reserve would not monetize the debt?
Yes, he did. The following is video footage of Bernanke from June 3rd, 2009 promising that the Federal Reserve would not monetize the debt….