Ron Paul: Bernanke Admits Economy Is In Bad Shape
Fed continues the destruction of the dollar with QE3
September 19, 2013
This morning, former congressman Dr. Ron Paul explained why Federal Reserve chairman Ben Bernanke’s unexpected decision yesterday to continue pumping $85 billion a month into the economy is bad for the American people.
“I think that it’s a major admission by Bernanke that things aren’t good,” Paul said. “He’s literally saying ‘We’re in bad shape!’”
“Yet the markets didn’t interpret it that way because the markets are reflecting just that ‘easy money’ going into the stocks but it doesn’t help those 99% or at least the large middle class and poor; it won’t help them one bit.”
Paul further stated that it won’t help Americans get jobs, so there’s still a large disconnect between Wall Street and the American people.
“I think it was a very, very bad announcement yesterday that the economy is a lot worse off,” he continued. “I think in time that will prove to be the case.”
Other economic indicators back up Dr. Paul’s statements.
This morning, the price of oil rose above $108 a barrel after the Fed decided to keep their inflation-creating policy called quantitative easing unchanged.
In making that decision, officials with the central bank admitted that the growth of the economy hadn’t met their expectations and they even lowered next year’s outlook.
The Fed began this current iteration of quantitative easing, the third one since 2008, back in Sept. 2012.
Initially with QE3, the Fed pumped $40 billion of new currency into the market a month through an open-ended bond purchasing program.
Last December, the Federal Open Market Committee announced an increase to $85 billion a month, which has continued into the present contrary to their decision in June to scale it back this month.
By increasing the money supply, quantitative easing is simply a transfer of wealth from 99% of the population to the elite.
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