Thread: Fed Boss Bernanke Promises Record High Gas Prices Through Summer

Fed Boss Bernanke Promises Record High Gas Prices Through Summer

Kurt Nimmo
Infowars.com
March 28, 2012

Federal Reserve boss Ben Bernanke told ABC’s Diane Swayer on Tuesday that gas prices will continue to skyrocket through the summer.

Bernanke told Sawyer gas prices “are a major problem” and he admitted they are “a hardship for lots of people.”


During the interview, he tried to pawn off the fallacy that gas prices are responsible for inflation, which he said will escalate over the next few months.

By inflation Bernanke means price increases. As Ron Paul notes, blame for this can be placed at the doorstep of the Federal Reserve.

“Most economists fail to understand that inflation is at its root a monetary phenomenon,” Paul wrote last March. “There may be other factors that contribute to price increases, such as famine, flooding, or global unrest, but those effects are transient. Consistently citing only these factors, while never acknowledging the effects of monetary policy, is a cop-out.”

Bernanke also claimed the rise in gas prices can be attributed to Iran and troubles in the Middle East. “The Middle East is very unpredictable — lots of things happening with respect to Iran and so on, so you know, we obviously — need to be — very attentive to that,” he told Sawyer.

Bernanke did not bother to explain how the Federal Reserve creates monetary inflation. It is really quite simple. More money equals less value.

The Federal Reserve is currently doing this through quantitative easing – increasing the money supply and flooding financial institutions with capital. Economists note that the problem with this is that although there is more money in the economic system, there is still a fixed amount of goods for sale.

Bernanke “admits he doesn’t understand why the economy is the way it is. Reality doesn’t fit his theory,” writes Zero Hedge. “So, what do you do when you are the head of the world’s biggest printing press, and don’t know what else to do? Why QE3 of course.”

On Tuesday, Bernanke hinted that QE3 may be right around the corner. He said more dilution of the money supply will be required due to vexatious unemployment.
High unemployment is directly related the the Federal Reserve and its engineering of boom and bust cycles through monetary policy. The Fed – as Bernanke has sheepishly admitted – was responsible for the so-called Great Depression and its staggering unemployment. It’s the same today.

Ben Bernanke is simply reading his bankster script, as instructed. If he was sincere, he would admit that rising oil prices do not create inflation. Oil prices are a reflection of a devalued dollar.

In an interview last year, ShadowStats editor John Williams said “the dollar’s weakness is doubly inflationary. It is the biggest factor behind the ongoing rise in oil prices.”

It’s not greedy oil baron in the Middle East or Iran threatening to close down the Strait of Hormuz in response to an attack.

It’s the Federal Reserve and the central banks.

» Fed Boss Bernanke Promises Record High Gas Prices Through Summer Alex Jones' Infowars: There's a war on for your mind!

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Americans angry with Obama over gas prices

U.S. President Barack Obama pauses during a meeting with Russian President Dmitry Medvedev before the 2012 Nuclear Security Summit in Seoul March 26, 2012. Credit: Reuters/Larry Downing

By Patricia Zengerle
WASHINGTON | Tue Mar 27, 2012 6:14pm EDT

WASHINGTON (Reuters) - More than two-thirds of Americans disapprove of the way President Barack Obama is handling high gasoline prices, although most do not blame him for them, according to a Reuters/Ipsos online poll released on Tuesday.

Sixty-eight percent disapprove and 24 percent approve of how Obama is responding to price increases that have become one of the biggest issues in the 2012 presidential campaign.
In the past month, U.S. fuel prices have jumped about $0.30 per gallon to about $3.90 and the Republicans seeking to replace the Democrat in the November 6 election have seized upon the issue to attack his energy policies.

The disapproval reaches across party lines, potentially spelling trouble for Obama in the election, although the online survey showed voters hold oil companies or foreign countries more accountable than politicians for the price spike.

"Obama is getting heat for it but people aren't necessarily blaming him for it," said Chris Jackson, research director for Ipsos public affairs.

Majorities of Republicans, Democrats and independents all disapprove of the president's handling of gas prices, according to the online poll of 606 Americans conducted March 26-27.
Eighty-nine percent of Republicans said they disapproved, as did 52 percent of Democrats and 73 percent of independents.

"People are unhappy that they are having to pay $3.90 a gallon. They want somebody to be able to lash out at and the president is as good a person as anybody," Jackson said.

BLAMING OIL COMPANIES

The most common reason cited by voters of all political stripes for the rising cost was oil company greed.

Overall, 36 percent of respondents said "oil companies that want to make too much profit" deserve the most blame for higher energy prices. Twenty-eight percent of Republicans said so, as did 44 percent of Democrats and 32 percent of independents.

Twenty-six percent of all respondents said a range of factors was equally to blame, including oil companies, politicians, foreign countries that dominate oil reserves and environmentalists who want to limit oil exploration.

There was little difference in that result across party lines. Twenty-seven percent of Republicans, 24 percent of Democrats and 32 percent of independents said all of those factors were equally to blame.

Republicans have hit Obama particularly hard for his decision to block TransCanada Corp.'s Keystone XL Canada-to-Texas pipeline as a sign that his energy priorities are hurting America.

Hoping to placate car-loving Americans, Obama toured U.S. oil country last week to tout his "all of the above" energy strategy that includes room for oil and gas development in addition to support for renewable fuels.

In Oklahoma, he pledged to accelerate approval of the southern leg of the Keystone XL pipeline. Republicans immediately dismissed the campaign-style stop as a stunt, saying Obama does not have the authority to really jump start the project.

Jackson said Obama has little to fear, at least according to historic trends, from gas prices alone if the U.S. economy continues to recover from deep recession.

Previous spikes in fuel prices have not affected U.S. presidential election results. But economists warn that higher gas prices could slow the overall economy, which would toughen Obama's chances of winning re-election.

The poll has a credibility interval of plus or minus 4.6 percentage points for all respondents.
(Editing by Alistair Bell and Eric Beech)

Americans angry with Obama over gas prices | Reuters