ben bernanke here you get a good shot of ben bernanke you notice that just ahead of ben bernanke the rest of his head is body is missing well that's one thing we have found that no matter what you do to the top of this ponzi scheme of bankers there's always another banker to replace you remove lloyd blankfein from the equation then well first of all you actually release you removed hank paulson from the a quote here sec paulson you know we we've removed try to remove him from the equation but it just another banker pops up they've got a you know banker infestation problem. that's correct so there's always another ponzi scheme operator to step in and so here we're talking about ben bernanke he. and his new quantitative easing thing well here's a headline on quantitative easing a paralyzed fed defers decision on monetary policy to primary dealers in an act that can only be classified as treason so according to zero hedge the new york fed . issued a survey to primary dealers which asked for suggestions on the size of q e two as well as the time over which it should be completed treason

what would you have the men in ben bernanke's chair do?ew years ago, he said, milton friedman, you are right. the fed caused the depression, which is wrong. we don't do it again. he should say, the fed has been an engine of disaster with this money printing we've been doing. we're not going to do it. we're going to form a sound group. we're going to talk to the chinese and try to figure out a way to go back to something like the gold standard and he's going of the to admit his mistakes and the chinese, who are locked at the hip with us because we're running their money policy, can figure out a regime that doesn't cause these imbalances. >> so until we get back to an environment with -- it says if everybody wants money, it should get more expensive and if nobody wants it, it should get cheaper. the bridge would seem to need to necessitate major debt restructuring, cancellation, rewriting. i don't know whether it's china debt, housing debt, u.s. government debt, corporate debt, personal debt, you can't get to that new blue dollar currency en

when bernanke came in he tried to avoid these political debates. but i think what he is looking at is a situation now where what he can achieve by traditional means is quite limited. and he would like to see the fiscal policy used to add some strength to the economy where he is unable to. but it's very resicky. he is starting to wander into territory which is much more politicize-- politicized. >> okay. he is in an atmosphere. we see it daily where he is getting criticized. starting with the quantitative easing which has been criticized in some quarters as we just saw for the potential risk of inflation. >> i think when people hear that the fed is printing money they draw a straight line saying that leads to hyperinflation and they start managing situations like germany in the 1920s. first of all that is analytically off base because printing money only creates inflation if the money gets lent and then spent. and these things are happening right now. this week we learned that underlying inflation is the lowest in over 50 years. but there is another

. >> tom: ben bernanke may not get much help from congress on fixing the economy. with the republicans sweeping to victory in the house and dividing the congress, a quick deal on any new economic medicine is unlikely. darren gersh looks at the new congress' agenda. >> reporter: republican leaders today were united on the new agenda that brought them to power. >> cutting spending. >> spending and debt. >> the voters yesterday voted against excessive spending. >> reporter: many of the candidates who will be sworn into office next year are determined to cut back the size of government. but political economist andy laperriere says making those deep cuts will be harder than campaigning against record- breaking peacetime deficits. >> the downside is when you start actually identifying where to cut programs. obviously, those programs have constituencies. a lot of them are very broad based constituencies. they're popular programs. >> reporter: the president and the new republican house are certain to battle over repealing health care reform and the fate of the bush tax cut

signers of that letter to bernanke. also joining us, alan blinder, professor of economics at princeton university and former vice chair of the federal reserve. welcome to the program. >> thank you, good to be here. >> susie: you believe with this money. the other, we get too much inflation and it debases the dollar. >> let's get alan into the conversation. you wrote under the title "in defense of ben bernanke." give us a counterargument. >> i think the coming up next on argument is pride simple. we have a an economy growing much too slowly. the unemployment rate is very high and not coming down, and on central forecast is not going to come down for a while. fiscal policies completely paralyzed or worse. so if anything is going to push this wagon forward, this big economy forward, it is going to be the federal reserve. i think that's the way the fed thinks about it. not that it has this super powerful weapon, qe-2, but it is doing what it can to push the economy forward, and i think they should. >> susie: if you're worri

>> the fed is run by ben bernanke. >> why is ben bernanke so unpopular? we'll find out what's behind the criticism. >>> don't change the channel. i'm about to say qe 2. i am with you. i have lots of people around me, including christine romans, the plan to stimulate the economy by purchasing $600 billion in bonds is coming under attack this week from conservatives, economists, and republicans. a letter signed by more than 22 political strategists and economists sent to federal reserve chairman ben bernanke says, and i quote, we believe the federal reserve's large scale asset purchase plan, so-called quantitative easing, should be reconsidered and discontinued. douglas is president of the american action forum and former director of the congressional budget office and one of the signatoies of this letter. doug, good to see you. your signature is here. boil it down to 30 seconds for our viewers. what is the absolute bottom line objection to qe 2, second round of quantitative easing, this fed buyup of bonds to put more money into the economy. >> this particu

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but ben bernanke is not, he's not really trying to list the inflation rate very high. what he's trying to do is get this economy moving. he's trying to get long-term interest rates down and he's trying to get the value of stocks up, sort of asset prices as they're called, in order to give people more confidence both to buy long-term and to borrow long-term as well as people getting more confidence in the consumer. so there is a legitimate argument about what he's doing but i don't think it's fair to say, and i don't think sarah palin would be fair to say he's deliberately trying to inflate our way out of this. >> i disagree with his approach. i disagree with bernanke's approach because i think it further contributes to the environment, the economic environment that we are currently in where businesses are terrified, investors are terrified. thus we see growth stunted. >> i want to go back to your fundamental point, anderson. there is in this country a very deep reluctance on the part of politicians to admit error. and that's because they somehow think if they admit it,

let's think chairman bernanke for coming over here and being with us. [applause] >> now, president obama on the october unemployment numbers. the labor department reports the biggest increase in private sector jobs with the highest in education and health care. but a separate survey reports the unemployment rate remains at 9.6%, the same as in august and september. we are in a tough fight so businesses can open and expand, so people can find good jobs, and so that we can repair the terrible damage that was done by the worst recession in our lifetimes. today we received some encouraging news. based on today's jobs report, we have now seen private sector job growth for ten straight months. that means that, since january, the private sector has added 1.1 million jobs. let me repeat. over the course of last several months we have seen over 1 million jobs added to the american economy. in october, the private sector has added 159,000 jobs. we learned that businesses added more than 100,000 jobs in both august and september as well. so we've now seen four mon

fed chairman ben bernanke said the inflation rate and the growth rate are below what the central bank regards as desirable levels. bernanke repeatedly said that the central bank is ready to replenish the market with more funds to support the fragile recovery. the minutes from the previous meeting revealed that policymakers discussed specific monetary easing measures. all eyes are on the scale and methods of the quantitative easing which the fed is set to announce on wednesday. in foreign exchange markets the dollar is already falling against the yen on expectations of the easing. >>> heavy rain has caused massive flooding in thailand. the thai government says more than 100 people have died and 6 million have been affected. the record rainfall since mid-october has caused floods and landslides in many parts of the country. a tropical depression has hit ten southern provinces. the city of hat yai has been hardest hit with many of its roads and public buildings under water. on the southern resort island of koh samui torrential rain has forced the airport to shut down and stranded many to

but the problem is fiscal tax policy regulatory policy clearly is what it is and you're right ben bernanke he's pushing on a string listen the fed does not have the tools to effect demand their tools only affect the money supply and this is going to ask the market question how about just printing a lot of money that's one way to get rid of debt and is that what the united states may be contemplating and the money. is what i'm going to get with it all and there's a lot i'm going to do with it all and i'm going to do their duty right. absolutely pushing on a piece of string i don't think it's going to look i don't think quantitative easing is the way forward i think we can all agree in the fall. that is the problem whether it's the public sector the private sector and to me what i can see what i'm concerned with is the symmetry of the for the past thirty years as was just pointed out we ruled gigantic also bubbles we took the profits we cycle through equities through real estate and through briefly through commodities markets too small to absolve the volumes and then we have a big leverage c

in 2008, his successor ben bernanke cut rates again and gold is now selling for $1,400. some are asking if the record price may have less to do with the high value of gold than with the low value of the dollar. said chairman bernanke, not only is he keeping interest rates close to zero, he is printing more and more money. the world bank president has called for the introduction of a new gold standard, an idea rejected by many analysts. >> we spoke with an analyst and asked if the current gold prices spur worries about the state of the global economy. >> definitely come up reseat the detriment around the globe. -- definitely, we see the detriment around the globe. given the backdrop of an inflationary policy, and the flexibility of asian currencies, they fear the global inflation will pick up to a fast. and people will go to gold as a safe haven. you do not actually have alternative sts. as long as this remains, gold remains quite a good asset. >> the scandal astrakhan at bank hsh nordbank has been told to sack its ceo dirk jens nonnenmacher. he faces allegations that he

other countries complain it hurts their own producers ben bernanke enmity was growing worried about the friction. >> have emerged and intensify, threatening our ability to find local solutions to global problems. >> one source of these tensions has been the bifurcated nature of the global economic recovery. some economies have fully recouped their losses while others have lagged behind. no apology.anke made hi he said a previous for re -- and tim have been successful. >> the committee announced it will introduce additional actions. they seek to support the economic recovery and promote a faster pace. they will reduce the risk of it for the decline in inflation that would prove damaging. >> washington is opening to charges of hypocrisy. the u.s. is frequently criticizing china for refusing to allow the currency to appreciate it has hurt the american business. now stand accused of putting down the own currency even though it could prove painful for its trading partners again. >> let's get the headlines. safety concerns held up the search for 29 miners missing at the new zealand mine. ther

let us hope this bernanke trick works. qe2, that ship no longer sales, and it makes you a little nervous. palin was practically speaking a foreign language this week on prime pumping and cease and desist and what it might do domestically. >> charles? >> the president had two jobs going to the summit. no. 1 was finalizing a free- trade agreement with the south korea. you don't go to a meeting with the head of state without that wired in advance. he comes out and he handed. he was handed a treaty to the bush administration negotiated one, but of course, always wants to reinvent the world and he has nothing -- obama always wants to reinvent the world and he has nothing. second, he wanted to rally other countries on china and pushing the currency parity. but you don't do that if weeks earlier your central bank essentially devalued the american dollar. it does not give you any ammunition. who attacked us? the brazilians and the europeans and the germans and others, who are going to be hurt by our actions as they have been by th

but as of this bernanke trick works. -- let's hope his bernanke trip were spre -- works. it is such that sarah palin was practically speaking of foreign- language this week on prime pumping and what it might do domestically. >> the president had two jobs is going to the summit. number one was to finalize a free-trade agreement with south korea. that was a catastrophe. you don't go to a meeting with a head of state without it wired in advance and he came out empty-handed. the bush administration negotiated a treaty that was already in place, but of course, obama always wants to reinvent the world and he got nothing. secondly, he wanted to rally of the countries in support of persuading the chinese, are pushing them, into currency parity. but you don't do that if three weeks earlier your central bank had essentially devalued the american dollar. it does not give you any ammunition. who attacked us? the brazilians and europeans and the germans and others, who are going to be heard by our actions, as they have been by the chinese. if your intent is to go into the g-20 and ral

i herd fed, bernanke say no, we're not worried. we're worried about deflation! a national survey for the national association for business economics ranked inflation a bigger worry than deflation. sure, your house may deflate in price but everything else will go up. what does it mean to you? more in a minute. here is another one i thought was incredible. the dollar. the weakest currency in the world! the dollar. that is up there with the peso, by the way. who said this? don't worry, only j.p. morgan. j.p. morgan. the weakest currency in the world the dollar is on pace to become. the cities are broke. detroit suburb took steps to file for chapter 9 bankruptcy, a move that revealed news of hundreds of cities in michigan that are about to follow suit and declare bankruptcy. again, who saw that one coming? china, china. can you ask your friends, are they a friend or a foe? they are the new leader in the world. the rest of the world is looking to them to lead. did you see the story that happened this weekend? as we attempt to lessen our coal use and we're told we hav

then you can say that ben bernanke says we should be worried about deflation?e he is. >> the constraint imposed by the nominal interest rate is too tight. the short-term rate is too high given the state of the economy. the risk of deflation is higher than desirable. >> glenn: george soros says the same thing. the u.s. not in the position of europe heavily indebted countries that must pay heavy premium over the price germany can borrow. interest rates of government bond are following the low and they predict deflation not inflation. i'm a spooky dude. they don't care. and george soros and ben bernanke ain't doing shopping. mom and grandma are. your wife is! the government realized people could recognize how bad things were so they changed how to calculate inflation. so the tv could say there is no inflation and you go i'm broke! how is that happening? now they calculate inflation without adding in price of food and energy. oh, so other than those going up, we're set! don't start talking about how to calculate inflation. that is a gravy tosser. asked has anybody

ben bernanke was a senior republican appointee and the bush administration. i criticize the fed policy in that administration as well because it was not strong enough on the value of the dollar and the constitutional principles of stability. i think we have to have a lot of introspection. a change in the policies that the fed pursues that will give us more stability in the long run. host: cash confusion is the opposite in the "washington *." -- in the washington times." we are talking about this with david malpass this morning. our next call comes from richmond, va.. caller: good morning. i see you ran for the senate for the republican party. i have a couple of questions. one is a statement. the federal reserve is a private institution. i don't really know what it does. what i am asking about his [unintelligible] it was talking about the employment act of 1978, giving the fed a new mandate. i am wondering what that institution should have the ultimate purpose of fostering economic prosperity and social welfare. i fail to see why a central bank has that role.

. >> if you buy the trawl short treasury a way to bet that bernanke's grand plan to levitate the pricesill not work. >> a lot of people don't think bernanke is right on this. >> this is a bad idea designed for people who trade within one day. >> boring oil companies? >> royal dutch shell, you get a 5.2% yield. nice stock to hold. >> boring but profitable. >> a dividend that high sometimes a sign it should be adjusted.

bernanke also warned china's under-valued currency puts the global economy at risk. meanwhile, china's central bank today boosted bank reserve requirements for the second time in a month. banks will now have to have 18% of assets on hand. the goal: less bank lending. still ahead, greetings from kansas city. we take you to the home of one of the world's best known brands and meet the family behind hallmark cards. >> susie: spending and jobs. those are the two issues now dominating the agenda in washington. on the spending side, the president's deficit commission is preparing to deliver its final report in a few weeks. robert reynolds, the c.e.o. of putnam investments, says the key to balancing the budget is faster economic growth. darren gersh recently spoke with reynolds and began by asking him what should be done to create jobs. >> i think you need some type of incentives in place. one thing we recommended was a three-year program, that if you add 1% to your u.s. workforce, you get a 10% reduction in business taxes. if you added 10% to your u.s. workforce, you get 1