{"id":21,"date":"2011-08-22T07:00:49","date_gmt":"2011-08-22T11:00:49","guid":{"rendered":"http:\/\/blog.beliefnet.com\/godonomics\/2011\/01\/the-federal-reserve-left-bread-crumbs-in-the-milk.html"},"modified":"2011-08-19T15:19:20","modified_gmt":"2011-08-19T19:19:20","slug":"the-federal-reserve-left-bread-crumbs-in-the-milk","status":"publish","type":"post","link":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2011\/08\/the-federal-reserve-left-bread-crumbs-in-the-milk.html","title":{"rendered":"The Federal Reserve Left Bread Crumbs in the Milk"},"content":{"rendered":"

A mother turns to her 8 year old son, “Did you drink milk out of the carton again?”<\/span><\/p>\n

“No mom, I didn’t drink out of the milk carton. You told me never to do that.”\u00a0<\/span><\/div>\n

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“Why are there breadcrumbs floating around in the milk then?”\u00a0<\/span><\/div>\n
\u00a0<\/span><\/div>\n
Mom tries again, “Did you eat the cookies I put in the corner with the sign, “DO NOT TOUCH!”\u00a0<\/span><\/div>\n

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“No Mom, I didn’t eat any chocolate cookies… I promise.”<\/span><\/div>\n

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“Why is there chocolate all over your face then?” \u00a0Hmmmm?<\/span><\/div>\n

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Ben Bernanke is the chair of the federal reserve: The organization that lends out money to banks and fires-up the treasury department to print more money. \u00a0 He was interviewed many times recently about whether or not he was “printing money.” He was also asked if the excessive printing had any long term potential to hurt our economy and devalue the dollar. \u00a0 \u00a0Ben looked into the camera with chocolate all over his face and crumbs floating in his glass of milk and said that “fears that the Fed would be printing more money and taking inflation risks through its bond purchases is a “myth.” He said the Fed isn’t printing money when buying Treasuries and the purchase won’t result in a significant expansion of money circulating in the market.” Ben Bernanke needs a mommy, very very badly. \u00a0He is playing word games with us “little people.” \u00a0 If he creates money digitally by digitizing it, rather than printing it… I guess it’s a “myth” to say he is “printing it.” \u00a0 But the results are the same. \u00a0<\/span><\/div>\n
His word game is as silly a child caught with his hand in the cookie jar by mom saying, “I didn’t EAT the cookies, I was only TASTING them.” \u00a0Oh, yes. \u00a0 EATING and TASTING are totally different, like digitizing and printing. \u00a0 \u00a0Now imagine that little child grows up, gets a BS degree -with an emphasis on the first two letters- and looks at his mother in a patronizing tone and states, “Mother, I was not eating or drinking improperly. I was engaging in\u00a0Quantitative\u00a0Easing, \u00a0Mother. \u00a0It is something you wouldn’t understand. It’s part of a very complicated and technical process I call Q1, Q2, and Q3. \u00a0Trust me mother, there’s nothing for you to be concerned about.”\u00a0<\/span><\/div>\n

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Proverbs 13:20 Walk with the wise and become wise; for a companion of fools suffers harm.\u00a0<\/span><\/strong><\/em><\/div>\n
Proverbs 22:3\u00a0\u00a0<\/em>The prudent see danger and take refuge, but the simple keep going and pay the penalty. <\/em><\/strong><\/div>\n

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<\/em>Proverbs warns us to walk with the wise and not keep companions with fools or we will suffer harm. How do you tell the difference between a fool and the wise? \u00a0First, wise men and women tell the truth. They know that “only the truth can set us free.” \u00a0 The foolish are in denial, play word games, and use “little white lies” to cover up the truth. The results of the foolish path are obvious… \u00a0You keep going and “pay the penalty.” \u00a0 Unfortunately, the American middle class will be the ones eating the bread crumbs left in the milk carton of the US economy when Ben is done. \u00a0You can take off your imagination cap and look at the chocolate smears on commodities as they continue to go up up up.<\/span><\/div>\n
For a free first session of Godonomics, visit:\u00a0 http:\/\/www.godonomics.com\/watch-session-1<\/a><\/div>\n