If you take a step back, and intellectually put aside the destruction of western capitalism as we know it, what we just witnessed was a strategic deployment of weapons of mutual financial mass destruction, intentionally allowing massive bonuses to be paid out to a very limited number of traders.
The big issue in the game of massive trades, is who can pay off the ultimate bet? Otherwise known as counter party risk. In this game, Ben “Can Do” Bernanke, appears to have actually pulled it off. He allowed some banks to setup massive trades, and used a national patsy to be used as the mechanization to distribute trillions of dollars to people who had bet against the US. That is the true issue here.
People who shorted the US currency, found themselves with out access to US Dollars, and were given access to an unlimited number of US dollars to close out their trades with. If the rules had stayed the way they had always existed, the US dollar would have gone up in value as people sourced their dollars. In this case, we gave them access to non market supplied dollars.
This has allow the US Dollar to collapse instead. Ponder that.
If I read things correctly, we can basically thank Ben for saving the world economic system as we know, at the expense of the middle and poor class of America, if only to allow the corpse to continue long enough for people to prepare for what is coming. In E.R. terms, he pumped so much adrenalin into the system to stimulate it, that it was able to continue to operate in either mode dead or live.
The numbers coming out of the giant data dump appear to show 10′s of trillions in liquidity provided, as needed, to pretty much anyone who needed after Lehman. I would say in hindsight, non of this would have been necessary if they had put Lehman in some kind of penalty box. But that is two years of water under the bridge later…
I don’t like Ben, and I believe he deserves jail time for the the willful dilution of his nations monetary currency. I will say that I have real respect for what he pulled off. It was the worlds largest bank robbery. 10′s of Trillions of dollars in liquidity flowing out of his bank, and to his off shore banking compatriots.
He makes all other bank robberies in the history of mankind seem small. That, my friends, is worthy of respect. Even the Emperors of Rome, never pulled off a caper like our boy Ben has.