C'mon Ben - Give us some more money !!!

It is foolish, to say the least, to predict what helicopter Ben Bernanke will do under the most predictable of circumstances and downright nuts just a few months before a presidential election.  Nevertheless, here is how TheFundamentals sees the current precarious situation.

As we wrote in our four essay series – Ben’s Odyssey (see TheFundamentals for the following dates: June 4, 11, 12 and 13, 2012) the fed chairman took it upon himself to single handedly finance the wasteful bubbles in government spending, health care spending and education spending.  He did this in the name of fighting/avoiding deflation even though all the statistics, facts and worthwhile, non-Keynesian analysis suggested that something very different was underway.  America was experiencing terrific run up in the costs of all things government and that included burgeoning bureaucracies, wars, foreign spending and education and health care as well as massive numbers of overpaid government employees with their over benefited/over pensioned situations supported by weak local and state politicians and bureaucrats.

Ben financed it with money he authorized to be printed and electronically created to purchase the massive debt issued under Obama’s fiscal promiscuity and that of his two congresses – 111^th and 112^th.  Ben, Barack and little Timmy Geithner have added over $5 trillion on the backs of the dwindling numbers of American taxpayers to make themselves look good and hold onto power.

Disgusting?  That word doesn’t come close to describing the antics of these three men  with no private work experience and their unaccountable cronies in congress.

So, why is Ben dragging his feet on the next round of stimulus?  The economic statistics are not good – GDP is floundering; unemployment remains high and the real unemployment – those who can’t find a job and those who have stopped looking and those who have settled for part-time work or piece work or some lesser application of their skills, education and training now number well over 15% of the workforce.  This is the "change" and the “we can do it” mentality of weak men with no practical work experience in real commerce under the tough and demanding conditions of real competition.  Four years ago these pages said that the government stepping in with stimulus and wasteful spending would only prolong the misery and the necessary and badly overdue correction period.

But why now, is Ben not fueling up the helicopter to take to the skies to drop more fiat (printed) currency on the Democrat voters – now when the election is only 2+ months away?

Well here’s our take on why Ben, at least for now, is grounded.  Ben knows that his fingerprints are all over the mess he has participated in – Ben is not an accessory before, during or after the fact this time – Ben is culprit number one – perpetrator number one – enabler number one.  The historians will not give Ben a pass on accountability this time.

Ben did this once before – only then he was an accessory to the wasteful dreariness of the maestro.  We know how that one ended up.  Ben is scared.  Spooked.  Fearful.  As well he should be.  He has taken America to the brink of an unnecessary financial disaster – all in the name of keeping the bubbles going and keeping his gang in power.  And it has not worked.  All that Ben has to show for his role is the responsibility for placing $5 trillion in debt on an already overburdened economy in the shortest period ever in the history of the world.

Ben does not want that epitaph written when the grim economist reaper knocks on his door.  So Ben has decided to opt out.  For now.   We’ll see how long Ben can hold out before the clamoring for Ben to get in the helicopter and drop the worth less cash on the panting, expecting and entitled voters.

What/who will win?  Ben’s justifiable fear.  Or the incumbent (c’mon Ben, give us some more money) facing the ignominy of Jimmy Carter one term status?  Stay tuned.  These are arrogant but very weak men.  Know-it-alls in front of the camera; Chicken Little's sipping their premium scotch in the wee hours.