Photo; USA Central Bank
Bernanke is willing to throw in another trillion or so - or two- dollars in taxpayer money, allegedly to create jobs, whereas he’s already thrown far more at that same slippery wall (and for that same slippery purpose), and nothing much stuck before; so why would it this time around? Because he labeled it “unlimited”? There’s no such thing, of course. Just because he can throw in $3 trillion doesn’t mean he could just as easily do the same with $30 trillion (the bond markets would have him for breakfast).
Draghi wants to purchase sovereign bonds, that are not worth anything near their face value, at that same face value. But are we still clear on why he claims he wants to do that? Here’s why: simply so Spain and Italy can continue to borrow more and more on the international markets. Which they can’t and they won’t, as Draghi knows as well as those same markets do.
That’s not some unfortunate turn of events, it’s all part of the plan; it will drive the countries into the very demanding hands of the IMF and ECB, who will hand out more bail-outs, but this time under the same conditions that Greece is facing: fire hundreds of thousands of civil servants, cut pensions, cut benefits, cut wages, longer working days, longer working weeks, and sell anything not bolted down to foreign investors at fire-sale prices.
In the end, the economy is all people. But Bernanke and Draghi’s schemes do not target all people, other than perhaps in very vague allusions: Bernanke pays far too much for worthless mortgage backed securities so the banks whose hands he takes them off have room to lend money into the economy (create more debt), which could hypothetically create jobs.
It’s time to get this through our heads once and for all: Bernanke And Draghi Are Not Trying To Save Our Economies. Perhaps they would if they could, but the question is moot: they know they can’t. Instead, they’re trying to save the financial system by stealing our remaining wealth while making us believe that the economy and the financial system - a.k.a. the banking industry - are one and the same thing. They are not, and that’s why we see our jobs and benefits and homes go up in thin air and smoke while the S&P looks rosy.