August 23, 2008 (LPAC)—In what could have been used as an opportunity to begin cleaning the mess of the failed financial system, Fed Chairman Ben Bernanke spread as much sh*t as money from his helicopter perch at the annual Jackson Hole financial bash in Wyoming today. Showing that he has no conception of what is going on in the universe, he explained the wisdom behind keeping the interest rates extremely low, against the strong advice of Lyndon LaRouche and a growing number of his fellow Fed Board members: the "slowing global growth," by creating an "increased slack in resource utilization, would foster a return to price stability," and thus there was no need to raise rates to slow inflation. I.e., collapse generates stability. As LaRouche noted, this idiot is a loose bowel without continence.

Bernanke also defended his bail-out policies as necessary to "allow banks and other financial institutions to de-leverage in a more orderly manner," especially in the "too big to fail" category. To achieve this, he recommends that the Treasury be granted the power by Congress to bail out the "non-banks" -- i.e., to make the Bear Stearns model permanent. However, he warned that stronger regulations are required, since the bail-out of Bear Stearns carries a "moral hazard," that the bigger banks will believe they will also be bailed out, resulting in "excessive risk-taking and yet greater systemic risk in the future." You think?

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