Bernanke Defends QE Forever – He Has Belts and Suspenders

rainbow suspenders

As Instapundit would say, the economy is in the very best of hands.

Ben Bernanke defended the Federal Reserve policy of what’s become QE Forever today. He said he’s not worried about the risks associated with his never ending stimulus policies because he has belts. And suspenders. Two suspenders.

SHELBY: Mr. Chairman… The portfolio or the balance sheet of the Fed, you said it’ss $3 trillion, more or less…

BERNANKE: I didn’t say, but yes, that’s about right?

SHELBY: Is that about right?

BERNANKE: Yes, sir.

SHELBY: But you said it then, didn’t you? It’s about $3 trillion.

BERNANKE: Yes, sir.

SHELBY: Is — you studied the Fed a long time before you ever came to the Fed. Has there ever been that type of balance sheet close to that?

BERNANKE: I don’t think so.

SHELBY: No. OK.

Does it concern you not how you put on — add to the balance sheet, but how you might have to deleverage the balance sheet? And will that be a challenge to the Fed or could it be?

BERNANKEWell, Senator, I should comment that although the Fed hasn’t had a balance sheet this size, other central banks, like the Japanese, for example, have.

SHELBY: And they paid for it, too, hadn’t they?

BERNANKE: Well, depends on your point of view. The current prime minister thinks they haven’t done enough.

SHELBY: What do you think?

BERNANKE: I think that they should try to get rid of deflation. I support their attempts to get rid of deflation.

In terms of exiting from our balance sheet, we have put out — a couple of years ago we put out a plan; we have a set of tools. I think we have belts, suspenders — two pairs of suspenders. We have different ways that we can do it.

Read the whole thing, and then, I don’t know, stock up on canned goods, ammo, propane, firewood, gold and whatever else you can think of. If you wonder why, then you should also read this. Unfortunately, there’s only so much gas the average person can stock up on.