From the Daily Reckoning- an excerpt

http://dailyreckoning.com/plumbers-crack/

Poor Ben Bernanke. There was a strange glow on his face as it appeared in Monday's Financial Times...like a bearded St. Joan of Arc; his hands were clasped together as if in prayer, and his eyes seemed to reach up to the gods, if not beyond.

He made his reputation as a master plumber in Princeton, New Jersey, interpreting drippy money supply faucets and deconstructing clogged fiscal drains. And now, he has become the hope of all mankind. Or at least that part of mankind that hopes to get something for nothing.

How came this to be? The answer is simple. The plumbers who came before him botched the job. Applying their wrenches to the recession of '01, they let too much liquidity into the system. Everything bubbled up. The subprime basement overflowed in '07...Ben Bernanke has been on the job ever since.

And this week the financial world held its breath. It waited. It watched. Ben Bernanke was hunched over...sweat on his brow...easing on his mind. Commentators, economists, and the public wondered if he could really create new money...new wealth...out of thin air? If this were true, it was a giant step forward for humanity, at least equal to discovering fire, creating Facebook or blowing up Nagasaki. Jesus Christ multiplied loaves and fishes. But He had something to work with. The Federal Reserve multiplies zeros...creating money – out of nothing at all. If it can really do the trick, we are saved. The legislature can go home. It no longer needs to worry about raising taxes or allocating public resources. Government can now buy all the loaves and fishes it wants. And give every voter a quart of whiskey on Election Day.

During the course of the last three years, the plumbers have spent hundreds of billions of dollars. It's hard to know what the final bill will be, since so much money – more than $10 trillion – is in the form of guarantees and asset purchases. They've pumped. They've bailed. They've squeezed and turned. They scraped their knuckles and cursed the gods.

You'd expect they might think twice before spending so much money. But on the evidence, they haven't even thought once. Quantitative easing has been tried before. Has it ever worked? Nope. Never. Do you dispute it? Give us an example.

........................................
Bill Bonner
for The Daily Reckoning

Shoot, you need to shorten this, unless you have permission to post it in it's entirety, copy right laws and all.
I've already gotten my first warning. :o

Quote from: Solar on November 06, 2010, 07:37:50 AM
Shoot, you need to shorten this, unless you have permission to post it in it's entirety, copy right laws and all.
I've already gotten my first warning. :o

Okay. It was an excerpt from several different articles.