“If Bernanke were honestly doing his job he would be educating the public about why debt run up to counteract a downturn need not impose a burden on the budget.* Instead, he is running around telling Congress to cut Social Security because ‘that’s where the money is’” (Dean Baker 9/8/2010).
It’s worth noting that Bernanke is quoting a robber here, in explaining why Social Security should be used to pay for bank bailouts & war, and to make up for the rich and corporations no longer paying taxes. Bernanke is doing his job–for Goldman Sachs and JP Morgan. In capitalism, they’re the only ones that count.
“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take away from them the power to create money and all the great fortunes will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.”
Sir Josiah Stamp
Governor of the bank of England
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
“I believe that banking institutions are more dangerous to our liberties than standing armies…”
“The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
* For example, the US could do as Japan does, and lower its interest payments on its debt. Japan’s central bank currently holds an amount of public debt that is almost equal to its GDP ($14.5 trillion in the case of the United States). As a result, Japan’s interest burden is less than that of the US even though its ratio of debt to GDP is 220%, almost four times the ratio in the US.
The Japanese government effectively get their money for nothing. They borrow from their central bank, who create the money. It costs them nothing because though their central bank normally charges them interest, all the interest comes back to them because they own their central bank.