12.06.2010 0

Bernanke, the Fed, and Zimbabwe, what’s the difference?

Back in 2008, Zimbabwe congratulated the U.S. and the Federal Reserve for taking steps similar to those taken by the central bank of Zimbabwe, which led to 79,600,000,000% inflation:

As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests.

..That is precisely the path that we began over 4 years ago in pursuit of our national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification, and demonization we have endured from across the political divide.

..Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multilateral institutions who today are silent when the Central Banks of UK and USA are going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what’s good for goose is not good for the gander.

…As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances.

(H/T Contrarian Investor’s Journal)

Why do I remind you of this? Ben Bernanke was on 60 Minutes last night trying his best to explain away the actions that the Fed is now taking. He attempts to assure the viewer (while looking without confidence himself) that “Quantitative Easing” is the best possible step for the central bank to take to fix the ailing economy.

Perhaps at some point in the not-so-distant future we will be buying our own $100 trillion fiat currency on ebay for just $2.00…

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