Fed Chairman Bernanke On The Economy
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- čas přidán 4. 12. 2010
- Fed Chairman Ben Bernanke gives a rare interview to Scott Pelley in which he discusses pressing economic issues, including unemployment, the deficit and the Fed's controversial $600 billion U.S. Treasury Bill purchase.
I don't think that the new chairman is qualified like Bernanke.
How do you feel like Jerome did?
"We're not printing money, we're just buying treasuries"!? The Fed prints money to buy treasuries - that's how they make purchases!
I give props to Bernanke for doing this interview. He looked like he was near having a heart attack! Did anyone see his lip quivering the whole time? I think his 600 billion bailout was genius, best move. BUT I'm really frowning at his response to the last question for part 1: "what do you think the reason for inequality in America?"...."education" ...This is completely not the case. If anything we have an OVER supply of credentials in our nation. This, combined with off shoring of jobs have wreaked havoc on the divide from top to bottom. Not to mention the big elephant in the room.....CEO pay
what did you think was the reason for inequality in America? If you ever read this..
Ben Bernanke is a smart man, people shit on him, but he did the best he could and helped us recover quickly
you're an idiot
someone shat down your neck and tightened a rubber band around your neck when they were done
I think they just removed the rubber band.
Derek Crumplesnatch nice you fucking nazi
Chris: He may be smart, most of them are, but the story the public gets is aimed to create an emotional response. Hate to be a cynic but having read a fair amount on the subject it is hard not to believe the whole economic armageddon was smoke and mirrors to save the banks and the security and bond holders. Read Killing the Host by Michael Hudson, also The Big Short by Michael Lewis for some of the gory details of the shenanigans the bankers pulled. Lewis goes easy on laying blame but the crisis chapter in Hudson's book more than makes up for it. Also suggest watching the documentary Princes of the Yen, there are some striking similarities what happened in Japan in the 1990's. Having a good understanding of how money in the economy is created, allocated and destroyed is also extremely useful for this topic and in general.
"We can raise interest rates in 15 mins!!" Wow!
Thoughts on the economy now?
I can raise interest rates in 5 minutes!
QE3 lost me 41.181% over 4 years in dollar value, but my 2oz silver nugget well over doubled over that time...Hmmmm
To satisfy the world's sanitation and food requirements would cost only US$13 billion- what the U.S. and Europe spend on perfume each year.
I understand the market operation process,but the main money supply representation the fed focus on is M1. We know M1 as the total money supply outstanding + deposits. M2 is M1 plus any CDs under 100k in value. They still order the treasury to print dollars when they need it,right? It sounds like you're saying the Fed doesn't order the printing of dollars anymore. I agree with you though, if I knew what Ben knew about the economy ,I would be rich already.I wish I knew more.
never seen anyone this nervous damn thats intense
I wonder how long it took bernanke to memorize his script for this sci fi?
Any minute I thought he would burst into tears.
In 2010: 600 billion will potentially cause mass inflation
In 2022: 3 trillion in QE is all transitory inflation. And will not have any long term effect
The recession is over and we are now in a depression.
Thanks for posting the latest episode of "Lie to Me". The new bald guy really does that shaky quaky thing real well, but where is the regular cast?
@rosiertodd
The chairman was referring to inflation in recent years, not for the period of time you're referring to. Also, you're only looking at one side of the story, wages have also risen with the devalued dollar.
@delta9999
That is not an issue at all.. It's called quantitative easing and vital to our recovery.
@billyjoebobway At several points in that interview you can hear the quiver in his voice.
The Fed prints dollars. Those printed dollars, the physical money, the paper ones are only a marginal amount of the money in circulation.
How about every single bank that loans people money (creating credit out of nothing on the spot)?
Was talking about the reserve requirement which the fed sets in percentages. If I told you you had to keep 25% of your interest based deposits on hand and you didn't have that on hand you'd have to get more from the fed. The Fed sets that percentage (like 5% or something). So they set how much money banks need. As far as bubbles such as housing bubble they set that for short term and encourage lending. The Feds relaxed interest policy opened the door for risky lending, leading to the bubble.
A man who political historical heritage thru hegemony has seen a many a moon. Poignant distinctions on economized stability which has derived from faustion tradition is most enlightening.
Thank You
Chairman of the Federal Reserve: Benjamin Bernanke
>- Annual Base Salary: $199,700
>- Maximum Job Length: 14-28 years
>- Previous Job: Professor of Economics at Princeton
HA_HAHA
did he really say the fed "doesn't print money"???
you got a bad poker face, Bernanke
If I was Ben Bernanke, I would be making rap videos with " REAL DOLLAR BILLS"! HAHAHAHAHHAHHAHAHAHAHAHAHAHAHAHHAAHAHHA!
Fair point, many of Ron Paul supporters don't understand the argument for expansionary monetary policy. I respect Krugman, Bernanke, etc. I'm no PhD, but I am afraid QE3 is not fail proof by any means. We expect banks to lend out to an economy that has 250% private debt to gdp. I do think there will be short term gains in unemployment, but I think it's just a short term solution to a larger issue, we need deleveraging, not more spending. I do think Austrians are making more sense right now.
So if it's not creating money that causes the problem, then why are prices still going up? Especially with the price of gasoline, the average of gas is almost at $4/gallon and it will continue to rise. :(
cut the federal spendings! the econemy havent been worse since the 30's yet the fed spends more money than ever
We're not printing money, just buying treasuries with our "reserves"... right.
i see the burnanke is finally telling the truth. i applaud him /s
Furthermore, in the long run, monetary policy has no impact on output. It's what is called "monetary neutrality". While high levels of inflation (see 1970s, or Zimbabwe for example) can negatively impact output in the long-run by introducing large quantities of uncertainty, the low level of inflation we have now (1.4%) is negligible. Prices may rise in the short-run, but in the long-run wages will adjust to these higher prices.
This video is well over a year old and has way more dislikes than likes with 43020, How is this a top search video?????????
Why does Bernanke's voice quiver?
7:32
"You have what degree of confidence in your ability to control this?"
"100%"
HHAhAAhHAhHhAhHhHhAHhAhHhAHhHhAHhAaHaAHaHaAHAHAHHAHAHHAHA
PURE STEVE KEAN !!
it was the tariff that killed us. The gov was hoping the tariff would encourage us to buy american, but other countries retaliated by posting higher tariff on us. We couldn't sell out product to the rest of the world and there goes the great depression
Wow...600 Billion of their own money...man what a deal. Wait, don't you print the money anyways? I wouldn't want this house of cards...
Ok, I just finished the interview... I hate to say it, Bernake was actually fairly honest. Which is surprising. He admits that the regulatory system was weak (not entirely his fault, mostly Hank Paulson, Alan Greenspan, and Larry Summers.) He also identifies the sub-prime lending problem and is sadly also correct about how if the Fed hadn't acted in the wake of the financial crises, the national unemployment rate could have reached up to 25%. His job is unpopular, but at least he's smart.
Oh yeah, cut the deficit. But please, just not this year.
I've heard that for decades!
You better change your paper dollars for real money (silver / gold).
"The last duty of a central banker is to tell the public the truth."
Alan Blinder, Vice Chairman of the Federal Reserve, on PBS's Nightly Business Report in 1994.
You have to understand that the often empty words of Central Bankers serve as a contrary indicator , so plan accordingly.
I don't blame Bernanke for the economy. His predecessor should take a hell of a lot of responsibility for keeping interest rates at all time lows for years.
While we all like to think that we know what's best for the country and the economy, at a more fundamental level we are all thankful when we can put food on the table. I believe the fed and Bernanke are doing their best to help us have jobs now and in the Long term
Hi Gofman!
@jaguarclaw That is THE question !! I do not have all the political and/or economic suave that others here do. However, let me use this scenario : You hire a painter to paint your bedroom. Upon completion, the job looks like crap. Even though you cannot paint worth a lick, (which is why you called a "pro") you can still recognize the crappy job you got. My point, although not as politically/economically suave as others, I can see Bernanke is NOT painting a pretty picture.
People need to stop crucifying Bernanke. He's done a pretty good job preventing a fincancial meltdown.
it was said in this report that some of the beneficiaries of the bailout money included JP Morgan Goldman Sachs Foreign Central banks. If they needed the money why were their stocks prices some of the highest in the stock market. The central bank of this country should not be engaged in the bailouts of private companies and other central banks, case closed
Factually correct, you can't fight people who are into sensationalism. It's the pathway of least resistance to stay ignorant.
Deflation leads to lower prices, which leads to lower wages, which leads to decreasing level of employment, output and income. Both Inflation & Deflation are bad, but deflation is hard to recover from. Thats why during the Great Depression, it was so hard to recover from it because Gold Standard held down the money supply. The reason why we recovered from the Great Reccession was fairly quick compared to the Depression was because the Fed can control interest rates and money supply.
He's not an trained public speaker, but he sounds very studied, as though he knows exactly what he's doing. Note though that he spoke exactly the same way when he denied that there would be any bubble burst or economic collapse in the years before it happened. Check out the "Bernanke is wrong 2006 2007 2008" video. That's what scares me.
At 6 minutes, Ben says he isn't printing money but somehow QE2 will keep interest rates down. Is this a Bill Clinton moment ("I did not...with that woman")? I understand that the Treasury actually applies ink to paper when it comes to "printing" bills but I think it is a bit of misdirection to say that these types of money creating operations will have no impact on the money supply. If there is one thing we have learned from the Financial Crisis...credit creation matters.
Regardless of what one thinks about the Federal Reserve, it is difficult to imagine a better chairman than Mr. Bernanke at this time in history.
In a speech on Milton Friedman's 90th birthday, Bernanke said, "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
6:30 We are not printing money this better be a clip on schiffradio. I want to hear Peter rip him a new a hole.
Bernanke is a genius with QE stimulus programs. He knows the system is seriously messed up, so basically told investors to put their money in stocks because the FED wont allow the stock market bubble to burst. QE Infinity= Bull Market !!
Bernanke is out of dodge at the end of January because he does not want to be responsible whenever the bubble does burst and we are in global depression.
Jerome loves QE also
hes like shaking he cant even lie well
He said they are not printing money, but just purchasing assets. How does one purchase something without money?? In reality they have printed 3.3 trillions of dollars to keep their toxic wheel turning and will keep printing money in the future until their debt bubble economy implodes.
END THE FED!
YEA
Agreed, Bernanke is actually doing his job very well in the eyes of scholars. People just dont understand the Fed because they believe in the gold standard. The Gold Standard was dropped because of many reasons, one because of deflation & the increase of wealth int he world & 2 because any country that is on the gold standard will affect other countries on the gold standard also. The rise of oil in my opinion is because China and India are in need of oil. Increase in Demand = Increase in price!
no, all those young people in the library are getting 100k degrees in uselessness
@CrimsonEmpire Finally somebody who actually understands economics.
Why are we surprised? Ron Paul spoke about this, all they did was delay the depression.
THERE IS NO INFLATION!
* Pork is trading at 104 a pound, up 23% in the last year.
* Beef is trading at 106 a pound, up 28% in the last year.
* Cotton is trading at 130 per pound, up 78% in the last year.
* Sugar is trading at 29 per pound, up 32% in the last year.
* Coffee is trading at 205 per pound, up 40% in the last year.
Bernanke is one of few good policy makers in the U.S.
@chiriquiTV "Old Gringo" First, I thank you for not attacking me with harsh words. I'm not the brightest bulb in the box, but I'm not the dimmest either. Your point is well taken. I guess the vids of the printing presses pouring out sheets of currency were merely an "example" of how capital is created out of thin air. More at Reserve creation, adding 0's to their accounts is one way it's done. ( ty LobFest you helped me understand this one). You are right, the future doesn't look too well.....
we go tout of depression because of spending cuts plus tax cuts
@mikethebodacious Exactly, "Were not printing money, It comes from reserves" what did they sell the little bit of gold they had or something? more likely he is saying "I did not have sexual relations with that woman" in his own words because he doesn't actually print the cash he just wrote a note that allowed Treasury to print it.
thank mr bernke
The guy sounded stressed and nervous throughout the interview.
Not Bernanke
And now, what's the FED's exit strategy? No wonder Big Ben's skipping town in 2014, the FED's backed into a corner and he knows it.
Exit strat was to print more money! 80% of current USD has been printed in 2 years
i don't care what they say, ben bernanke is a good guy
@235RB
Why?
THERE IN NO INFLATION!
* Oil is at $89 a barrel, up 21% in the last year.
* Gold is trading at $1,413, up 23% in the last year.
* Silver is trading at $30, up 66% in the last year.
* Copper is trading at 4 per pound, up 26% in the last year.
* Corn is trading at 573 a bushel, up 49% in the last year.
* Soybeans are trading at 1,300 a bushel, up 23% in the last year.
* Wheat is trading at 779 a bushel, up 41% in the last year.
I hate how people bash Bernanke.....
I certainly can't disagree with that statement. I also think that if people picked up a book on Economics they would also never see any national or global news the same again. Which form of education would be better?
Newt on Ben Bernanke “I’d fire him tomorrow. I think he’s been the most inflationary, dangerous and power-centered chairman of the Fed in the history of the Fed. I think his policies have deepened the depression, lengthened the problems, increased the cost of gasoline and been a disaster.”
100% confident. Good luck!
if falling prices is the problem then Walmart must be the enemy. can't have it both ways. our prices are inflated with your interest/income tax paychecks, Ben. they need to come down.
Why are your eyes so cold, why do I get this chill down my spine when I see you talking. Why are your words so certain, why do I get a pain when you are asserting.
Why are you not telling us the truth and what are you hiding?
Why are your eyes so cold, why do I get this chill down my spine when I see you talking.
Audit the FED!
He sounds nervous
Real Unemployment rate is 22.4 percent on January 17, 2012 look it up on shadow stats...by the end of this year 2012, the US deficit will be over 17 trillion does anyone believe that?
How do you feel now?
Here you go. Ben Bernanke His name is an anagram for (bank be ern en)
Thank you, I am sick and tired of uniformed people from both the left and the right make outrageous claims about the Fed
What outrageous claims?
@chiriquiTV I'm with that plan. Where do I cast my vote.
Most powerful man in the world.
What university teaches libertarian crank economics? Please, do share!
As you say it's an "overall" estimation of inflation. So how can you exclude energy and food in this "overall" estimation? You can't. So OVERALL looking at inflation there is a CLEAR increase. Majorly. Also, just fyi, the United States this year is making more domestic energy than it has ever made. We now only import roughly 36% versus 65% in 2005.
Is it just me, or does his voice sound really shaky and defensive? He said they weren't printing money, that they were buying bonds. Where did they get the money to buy the bonds with?
fed lowering interst rate, can you explain to me WHY the fed had to lower interest rates in the first place? they did it for good reason.
but unfortunately that's their only weapon, and the idiot private sector used that opportunity to speculate instead of using it on better means. Private sector need to take responsibility on their behavior.
The most powerful man in the world.
just wanna say without any specific opinion that this guy co-composed my uni's macroeconomics text book.
at 12:01 he relaxes a bit because he's finally speaking a bit of truth. but the situation he describes is still coming, he's just trying to delay it as long as possible and hope that some economic miracle saves them
How?
It's the classic misunderstanding of "Supply & Demand". Flooding the market with paper money isn't going to increase the "demand", it only gives more money to people to by the same amount of goods. As long as there are people there will always be demands. If you want to reach a higher demand, then you need to increase your supply which is done through expanding production. If you look at America right now, it's the opposite, everything is being cut. If you think this guy makes sense you're nuts
Redistribution of wealth (raise taxes on the rich and borrow a great deal of cash), investing in infrastructure and war spending got us out of the Great Depression.
Those poor students at Ohio State!
ha so if wages dropped along with prices its bad, but if prices rise faster than wages its good?
When you out right LIE, you become nervous, he is a criminal
There IS no recovery.
Welcome to QE
@6:30 "One *myth* that's out there is that we're printing money. We're not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way."
I must be dreaming. Tell me he did not just insult our intelligence on such a profound level.
deflation is a good things, price will be a lot of cheaper, it will fuel recovery
Ben Bernanke is shaking in his boots. He looks like he wants to cry.