Bernanke - Hedging His Bets or Lying?

Ben Bernanke, the Federal Reserve Chairman, recently wrote that the European economies might crash the American economy. This is the same guy who said that housing would have a "soft landing" and that the subprime problems would not leak over into other parts of the housing market. Now lets consider what he said in his latest nonsense.

EconomyWatch on MSNBC has posted the following article. Bernanke warns of possible European 'contagion' The story has a link to the Feds own website.

If you read Mr. Bernanke's written testimony he claims that as a result of Europe's economic problems the Federal Reserve did some currency swaps with foreign banks and that it is safe for the Federal Reserve and the U.S. taxpayers because "They present no exchange rate or interest rate risk; each drawing has a short maturity and must be approved by the Federal Reserve; they are collateralized by the foreign currencies for which dollars are swapped; and our counterparties are the foreign central banks, not the foreign commercial banks that receive the dollar loans".

If you go back and read one of my earlier post regarding these swaps you will know just how dangerous it was. How Mr. Bernanke cannot see this is beyond me. If the foreign currency fails then our collateral (their currency) is worthless. How is that not a risk. When one goes, they all go and they keep our dollars. Think of it this way, I trade you $100 for a lamp, the lamp breaks, will you give me my hundred dollars back? No, you would not, not if you have already spent them.

I am still recovering from being sick so I may not be able to explain this as well as usual. Remember when the stock market crashed and the big banks were about to fail, well, Congress approved the TARP bill which allowed for a trillion dollars in "bail out" money. It later turned out that much of that money and loans from the Fed were given to foreign banks. Right now the currencies are no different than the derivatives are and that crashed the world's economies.

If you take a bunch of currencies, like the Euro represents, and you blend them in with your own currencies then if one fails it effects them all. They will fail and that will be the excuse for setting the rates for all of them on an international level. This is coming.

If you read earlier in Mr. Bernanke's testimony, he also says that he agrees that the European Union needs to be tighter politically to have a stronger Euro. You see political union and economic union are put together so when the currencies do crash, Mr. Bernanke will support us to give more international power over us politically.

This is the type of thinking that buried Greece and is about to bury the rest of Europe and us too. Sure they reduced the debt of Greece's bonds; but, they did it in exchange for the right to set Greece's budget, heck, Germany even sent over tax collectors to Greece.

There is a speaker named Nigel Farage and he has discussed how well the European Union has worked and has discussed how dangerous uniting with a shared currency is and how the European Union has a greater effect on their internal laws than their own countries.

YouTube - UKIP Nigel Farage MEP and Irish Gay Mitchell MEP debate Irelands EU membership

If you can, spend the time to listen to the whole debate. Here again we hear how a tighter political allegiance is supposed to help their currencies. You will hear the same arguments made when our currencies all crash together. One of the things that happens when you give up your sovereign budget making is that you cease having sovereign decision making. Because your laws are made by international agreement, you have less direct ability for your vote to matter.

This is probably one of the most important issues you will see in your life and how the people who want a new world order will achieve it. If it sounds like a conspiracy theory, oh well, it is the truth. The political class of the west wants more internationalism and international law and they don't want it voted on through treaties or it challenged through referendum. When Ireland did not vote for one of the referendum's of the EU, they were told if they didn't pass it they would be penalized by the EU.

This is going to happen and so few people will understand it when it does. It will not be until later, perhaps years later that they will understand what the real consequences are. Lets say that we are trillions of dollars in debt, what if we could have all of our national debt eliminated by agreeing to international rate setting for currencies, people would be thrilled. They would find sense in the world again and accept the international rate setting as reasonable. The power to regulate the money is the power to regulate the country.

When this little rat trap is sprung, the fear will be so great and the answer sound so reasonable that people will demand we immediately approve the treaty that will be needed to create it. It is nothing new that I have said the crash of these economies was intentional and if you listened to the whole video you heard how the European Crisis was caused by their loaning out cheap money. Why did the same thing happen across Europe as happened here at the SAME TIME. How is that an accident, how did not one country manage to avoid the same problem, why didn't the finance ministers of any of these countries say no?