Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

By Greg Hunter’s  







Stay Connected
  1. Ken

    The reason no one in the press cares is that they have been dumbed down (notwithstanding their intellectual conceits) just like the rest of America. They simply don’t understand the problem.

    Ask the average reporter what it means and you will just get a blank stare.


    • Greg

      Thank you Ken.

      • Mark Mudgett

        Hey Ken and Greg,

        Ken’s opinion is right-on. The press, and Americans in general, have been trained to believe in an ideology and to not think critically (believe and belief = religion). PC and redistribution are now our cultural norms. Thinking beyond stage-one is not performed anymore.

        Greg has explained several times that what he digs-up does not require a rocket-science mentality, as he is just connecting the dots using linear processes. Abstract thought is not required. (I paraphrased what he wrote and said–I hope I understood him correctly!)

        I think most reporters would answer: “paying off the debt” if asked, “What does monetizing the debt mean?”


        • Greg

          I worked with some of these people and you are so right!

    • Jerry

      Is the premise that $1.3 billion was just printed up and distributed for no consideration? It seems to me that the purchased securities have some value, probably a lot closer to $1.3 trillion than Zero. (I doubt it was an investment worthy of $1.3 trillion).

      Where was the fed supposed to get $1.3 to buy the securities (assuming they felt compelled to do so), raise a poll tax? Tax the banks? Pass the hat? I’m not sure I understand the revelation.

      I’m not saying the nationalization of these mortgage backed securities was a good idea – particularly at the price. Far from it.

      I’m also not sure it guarantees an inflationary spiral starting.

      My compliments to you and Ron Paul – thanks for the hard work.

      • Greg

        Inflation is not an “if” but a “when.” “Real inflation” is already running at 9.5% according to The $1.3 trillion went to people who otherwise would have had steep losses had the Fed not bought them. The hardest thing for me to do since the crisis started to grasp the enormity of the situation. We bought $1.3 trillion of mistakes and bad investments of bond holders? THIS HAS NEVER HAPPENED BEFORE and this is just what we know about because you cannot audit the Fed. All this money is going somewhere. I suspect the bonds bought by the Fed were in fact worth zero or near zero. Plenty of other sources are saying we face inflation with all the bailouts and money printing. If you believe in capitalism then you should also believe in failure and that is exactly what the banks should have faced. Instead we bailed out the incompetent! Thank you for your support and comment.

  2. Stephen Clifton

    The American public is much more interested in Jessica Simpson’s weight gain, Kate Gosselin’s new hairdo and Tiger Woods “indiscretions” than things that might actually impact their future. That or we are too stupid to realize what’s actually important thereby deserve all of the financial pain that is coming our way.


    • Greg

      True that man!

  3. MonkeyMind

    I guess I must give you the only thing an unemployed citizen from Redneckistan can afford to give…a heartfelt Thank You. I hope it is enough…

    • Greg

      Monkey Mind,
      Thank you for your support. Hold your head up and don’t let them steal your pride!!!

  4. Dan

    The fact has never been hidden, its strange, because they have these auctions of government bonds all around the world where you get private investors some of whom actually buy from deposit but it has never accured to them that the member banks who also bid are not buying from their own deposits, they are creating the money. People need to understand its all backwards its the same method as when you write a cheque the cheque is an asset, its the real money, you deposit your cheque(asset) at the bank on the private side hence your endorsed signature and the bank then takes that asset and puts into the asset side of its ledger which means its reserves have increased they can now apply at their central bank to extend those reserves 10:1 from the central Reserve bank, because you just deposited wealth in their bank get it!? so talk about backwards, people think they have been borrowing from banks all this time when in fact they have been lending, which must be true because the true source of all wealth is peoples energy not the private intellectual property of banks(their credit). so the same process happens with bonds the government issues the bond deposits it to the bank when they bid they created PUBLIC credit to the amount of the bond because they now have it as an asset on the ledger and extend public credit to the government for spending which in some cases they even give back to the banks as a bailout did you see that circle?…

    It should be fully understood by congress because the banking cartel does not and has not ever hidden this information. I would encourage people to read “Modern money mechanics” first link in google which is a publication from the fed that explains it all.

    • Greg

      Very good info!!!!, but you have to admit it is shocking to see Bernanke just smugly nod his head yes to creating $1.3 trillion in little more than a year. To my knowledge he has never been that forthcoming. Thank you for taking the time to write all this for our readers!!!!

  5. Forester1

    Let’s face it, they took the market down to chase the common investor out of the market, and since then they have pumped it unstoppably up, all the while claiming it’s a bear market rally or it is going to be a ‘W’ or some such, when the government itself is the only one with the resources to do this much pumping. All the while I don’t think the common investor can see what is right before his nose. They kicked you out pal, and they’re not letting you back in. It’s their money now, and you are not part of the elite. Come and buy our CDs and you might or might not stay ahead of inflation SUCKER!

    • Greg

      Good point. I think Wall Street will harvest some money again soon. Thanks for writing.

  6. acudoc

    The modern banking industry is modeled on the Bank of England, founded in 1694. This bank was happy to disseminate banknotes not backed by gold when they made “loans”, and then collect interest on this faux money (gold coins gladly accepted as payment!)

    The whole mechanism of money creation in the modern world utilizes the same method and basically represents a legal privilege granted to a financial elite to run economies through the power given to them to issue fiduciary media as a nation’s currency.

    The members of this elite qualify as entrepeneurs in this sense only: they are experts in the business of screwing their fellow man through legal privilege.

    The world is waking up, one person at a time, because of the internet.

    • Greg

      I hope the world wakes up before it is too late. Thank you for the comment.

  7. jon

    Are you serious? you needed Ben’s addmission in the hearing to understand where the money’s coming from. Naïveté in the extreme! I was numbfounded when i read your article.

    • Greg

      Of course I am serious. I follow this in detail for a living and I have never seen such a stark admission of money printing from ANY Fed Chief. I put this site together for common people like myself. If you are a pro you can find out in great detail how much the Fed is monetizing debt. Most people cannot do that. So, for the common people, Bernanke simply admitting he “printed” $1.3 trillion was quite astounding to me and many readers and blogs that follow this site. Thank you for the comment. I am sorry I set the bar too low for your liking.

  8. Mike S

    Yes call your Congress person and see what happens. Change the leadership in Congress from one party to the other and see what happens. Vote in a president from the opposite side of the fence where from the side where you are and see what happens. How about demonstrate in the streets, do that too, see what happens. Nothing. Already been tried, Obama is continuing the disastrous bellicose foreign policy many hated so much under Bush. The public who know this are in shock because they are just now seeing how REALLY REALLY BAD things are, and wondering how to get a 3rd party sweep, something the powers that be will fight tooth and nail. The American public is not stupid, they’re very unhappy and many are angry, I think they’re reeling from the magnitude of the problems, and I hope the solutions they choose to implement are political and not physical.

  9. Xi Chin

    4:43, Ron Paul asserts that the US is bankrupt, Bernake goes “um”. That is a sound that in the West means “Yes, I agree with that, I do not take issue with that.”

    So there you have it, Bernake agrees with Ron Paul that the US is bankrupt.

    • Greg

      Good point. Thank you.

  10. Mihail











    The Jewish Encyclopedia:


    Encyclopedia Britannica (15th edition):





    Collier’ s Encyclopedia, Volume 14, page 65 states:


    The Cadillac Modern Encyclopedia, page 822, states:


    Arthur Koestler (The Thirteenth Tribe).

    Kevin Alan Brook (The Jews Of Khazaria).


    Shlomo Sand (The Invention of The Jewish People).

    BIBLE (REVELATION 2:9,3:9).

  11. Gigas

    It looks to me we have a war of the money. In one hand we have rupert murdochs fox news feeding the obscure facts to anyone who will listen while over in the other hand we have george sorrows buying bodies to marshall a smoke and mirror campaign over the confused rabble.

    In the middle we have the money launderers doing their magic of making something out of nothing.

    Smile, your on candid camera!

    • Greg

      Yes, and this cannot continue for long. Thank you for your comment.

  12. MorningStar

    Well done on the article. Ron Paul is gaining in the polls & November isn’t too far away. Of course, I’m still not happy about either political party. Both are the cause of our present problems. Hopefully, we’ll have a good, solid party or Republican candidate in 2012.

    • Greg

      I hope so too. Thank you.

  13. janine

    Great info and insight! Keep telling the truth, and maybe..just maybe we can save this once great republic!

    • Greg

      Thank you for your support and kind words.

  14. Duke Mantee

    Reagan was wrong. There has never been an empire more powerful nor more evil in the history of the world than the U.S. government. They are literally stealing the hard earned money out of people’s pockets by creating their counterfeit out of thin air. Inflation is an official policy for paying off illegitimate debts they have run up with something worth far less. The U.S. government is a huge Ponzi scheme, only in this case the suckers holding an empty bag are the first ones into the game rather than the last. And what is the money being used for? To destroy our middle class and previously great culture while supporting regimes covertly and not so covertly hostile to our existence, for example, Bernanke’s, Paulson’s, Greenspan’s, and Madoff’s first allegiance.

    • Greg

      The American people are good. I hope one day we will have a “good” government as well. Thank you for the comment. We all feel your frustration.

  15. Al

    Hi Gregg

    I enjoyed your article, maybe the bar was set a little too low for maybe 5% of the readers, but I believe the ordinary Joe six pack type (95% of the public) doesn’t have a clue of what is happening, and has no idea of the coming inflation that is due to an increase in the money supply, a.k.a. monetizing the debt, God help us all.
    I tell all of my friends about your website, and a few of my other favorites, and you know what? They dont read them, they are too busy with other things, (IDOL, DANCING WITH THE STARS, HOCKEY BASEBALL),


    • Greg

      Thank you for your support. I promise to keep plugging asway.

  16. Repo Jake

    The USA is NOT bankrupt: it simply needs to repossess the Fed !

    • Greg

      Maybe you can start a movement! I’ll back you.

  17. Jimmy K

    Money is not printed out of thin air. Money is an monetary measure of productive potential and by definition is an inexact science. Macro-economic theory studies the supply of money supply such as M1, M2 etc. and the impact of market forces by expanding or contracting the bandwidth. The bandwidth of money is always a heated topic of debate as the underlying issue is societal direction and control gauged by requisite levels of social justice. Keynesians and Monetarists each seek to empower their own political bases and gain the upper hand.

    • Greg

      You have given the academic slant to what is going on in the economy. Bravo, you know your subject well. For common folks, such as myself, I like to use the term “money printing” to sum up what is going on. In the end, the outcome will be the same. The U.S. will experience some very big inflation. Thank you for taking the time to comment. Please comment again!

  18. Mike


    The same people that ran the USSR also run the USA. They know exactly what they are doing. There are no mistakes or short sightedness on their behalf. They created an Empire called the USA and built it up to go around the world spreading “Democracy and freedom” which is code talk for smashing people into submission to accept THEIR money system and government they put in place, a footstep towards world government (which they will control).

    When the USA has run it’s course they will pull the rug out and smash it too. You can clearly see those days are not far away.

    What will the people do? Fight? or cower like little girls?

    It’s kill or be killed. These creatures killed 40 million in Russia from 1917-53, so how can anyone think they will not hesitate to kill millions of Americans in one way or another is beyond me. You cannot “talk” or reason with these creatures, or even “hope” that things will turn out good. It’s going to mean people getting off their backsides and fighting for their lives, and the lives of their children.

    Most Americans can’t even name the 50 states of America, or locate them on a map, how are they supposed to understand these creatures who have been playing this game for 2000 years and are a well oiled, tightly knit machine?

    The worst part is MOST people have been taught to SELF CENSOR. Years of propaganda and programming have made people not look at certain people as a group. This group has been kicked out of 84 countries 109 times in 2000 years! They have pulled the same scams over and over!

    This group FIRMLY runs America, and it’s become VERY OBVIOUS.

    Why can’t Americans see it and deal with it?

    These creatures are UNAMERICAN, and get other peoples kids to die in wars that ONLY BENEFIT THEM.

    It should be the focus of every American to deal with this problem, before things get way out of control and these creatures instigate a race war.

    Only THEN can you possible get in a good government that looks after the people, and GUARDS against these foreign invaders from ever taking control of the money, media and government ever again.

    Anything less is wasting time, and signing your own death warrant.
    It’s not against the law to kick out the subversives, and kick out the government. It’s written to do just that!

    • Greg

      Thank you for your views.

  19. Vivian

    Hi Greg,
    Many thanks for keeping us abreast of our “Miracle Money”.
    I continue to do research regarding ,”protocols, bilderberg, unfederal non-reserve etc; Most people have no clue as to what is truly going on, but I retain my faith, and share my knowledge with with anyone willing to listen. I’m adding you to my prayer list, that God will continue to bless you, and keep you safe, because we know thing will get worse. We, who have a heart for others, will be rewarded, so stay strong, stay loving, because we know who wins at the end. Bless you and your family. Vivian

    • Greg

      Many people who read this site are concerned just like you and me. Thank you for your prayers but don’t forget there is nothing wrong with preparing for the coming storm.

  20. David Wozney


    The April 30th metal value of these nickels is “$0.060351” or 120.7% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” available at .

    • Greg

      Good info, thank you.

  21. Michael

    Thanks Greg for your article and efforts to sound the alarm. I do hope one day we will have “good” government. It is hard to believe all that has happened in only a few short years.

    • Greg

      Thank you.

  22. Matt

    If you really want to know the game firstly read up on the illuminati and what they have done over thousands of years on this planet. Then read about thier off-plantet ET kin who have been running dark agendas for many millions of years- Read Voyagers I and II by Deane.

    • Greg

      Thank you for the literary recommendations.

  23. Ozzy

    There is a warm place in Hell waiting for Bernake.
    God speed him on his way.

    • Greg

      Amen Brother!

  24. dippity doo


  25. George LoBuono

    The Federal Reserve is simply doing what it has always done–but on a more drastic scale. Andrew Jackson saw that the 2nd Bank of the US was a similar scam: US currency printed by private banks was then given primarily to those same banks. Who gets the money the Fed prints? Its owner banks, not the government, not the productive growth of labor or industry. Just those banks. Which is why Jackson wanted to kill the bank before it killed this nation. An assassin went for Jackson—the first time in US history, of course. Being a soldier, he attacked the assassin… and won handily. Rockefeller, Rothschilds, Warburg and now Goldman—you can see what mafia now owns and runs the Fed bank scam.

    And where do you think it’s headed? After generations of mass criminal impunity, those same people don’t even resemble ordinary people, psychologically. You have to take time to simply imagine how far gone they are to really understand antisocial minds of the sort. If we leave it to them, this nation will be ruined, and the entire planet is at risk. How to stop them? Stop the Fed. Ron Paul is just one of many who see that IT MUST GO!

    • Greg

      Thank you George,

  26. Jay

    I’m sending you this because you seem to be one of the only “HONEST” ones out there. Please show and comment. It’s another item that the main stream doesn’t seem to one to show and even more serious than Bernanke’s monopoly money. I’ve been following this Greg for some time and was told the situation was a scam. I was even informed that some of the vaccines contained H1N1 in order to spread the virus but fortunately they were sopped and the vaccines in question DID contain H1N1. UNBELIEVABLE that people don’t know about this.

    Profitable Depopulation Plot Links JP Morgan-Chase
    And Goldman Sachs To Vaccination Contaminations
    And BigPharma Corruption
    By Dr. Leonard Horowitz





























    • Greg

      This is long but interesting. I’ll put it out there for my readers.

  27. Jabari

    Sweet Lord this is out of control. This crook is robbing this country blind and on national television (unfortunately the honest and ‘boring’ nature of C-SPAN undermines it’s extreme importance to transparency and justice).

    Way to go Ron Paul, expose the fraudulent banking system for what it is.

    • Greg

      Great point.

  28. Justin

    Perhaps you are aware of the Zeitgeist Movement? I highly recommend watching the Zeitgeist Addendum, it really helps in fully understanding the banking system of the USA. In it, is a short clip of Ron Paul making almost the same argument several years ago. The film is incredibly informative!

    • Greg

      I do not like this “big brother” approach to social design and decision-making. I think people should think for themselves. I will post you comment to see what USAWatchdog readers think. Thank you for your views.

  29. John Rodgers

    The press do understand they also understand who pays their wages.

  30. OldSchool

    In retrospect to the illicit practice of making more ‘monopoly money’ we have become ants in the grand scheme of things. The 2 sides of this coin are both bad news. The Fed continues to print money on an ‘as needed basis’. It’s wrong and under-handed. This practice has somehow kept the global economy from collapsing like the San Andreas fault line (on a corporate level), albeit a condemning practice to begin with. On the other side of the coin is the option of imploding the flow of ‘bad guy’ money via ‘Financial Reform’ and bringing the monetary enemies into full public view. If all the ‘too big to fail’ entities are broken down and exposed, it would propagate a complete and uncontrolled tanking of the stock markets which would indeed crash the system. Banks, IRAs, pensions, investments would all go stale overnight since they are leveraged out at horrendously high Fractional Reserve Banking ratios. They have invented the sustainable disaster, at our expense, and there is NO way to emerge unscathed.
    Debts would triple overnight, which is the systemic parallel of what is happening now in the wall street casino. Damned if we do, and damned if we don’t. Our 2 options are BOTH bitter pills.
    Self sufficiency and survival as local communities seems to be the only option. Yes there will be huge sacrifices and re-adapting on our parts, but freedom has never been free.

  31. Adam Neira

    Audit all the banks and see where the chips fall. Everyone just might find that some have been better at the financial poker game than others. The chance/skill ratio of the game of poker means that over a period of time the smarter player will win more of the money. Sometimes people who lose their shirt maintain that the cards were stacked. A fair game frustrates the hell out of poor losers. Men can handle being rejected by a women. They can deal with ill-health. They will put up with jokes about their character. But they hate to admit that the other man is smarter than them. Most men would rather go to their deaths than face up to their intellectual and spiritual inadequacies.

    • Greg

      As I have said before we should have taken them straight to receivership and only protected depositors. Now the FDIC is broke with only a line of credit to the Treasury. Sad. Thank you!

  32. saptono

    Why should they shocked? Didn’t they know it? It is the big idea of the monetary system since US dollar detached from gold in 1973 and the US people is prohibited by federal law to own gold except for jewelry. They also knew that the system will not last, there always limit there. This maybe the beginning of the end. Bernanke is US Version of Suasno Duadji from Indonesia. The media also help not to notice this joker system to the US Taxpayers.

  33. Rambo

    The monetization of the mortgage backed securities, at this point, is not inflationary, as long as it stays on the Fed’s balance sheet. This is not really any different than a bank creating a loan, with the difference that the newly created Fed money (monetization) is not directly entering the financial systm. The interesting thing will be what the Fed actually does with these assets that are on its balance sheet. That is the key. However,expect the Fed’s balance sheet to keep growing in the future.

    • Greg

      I think it has already made it’s way into the financial system. Real inflation is already running at 9.5%. Thank you for the comment.

  34. John

    Hey Ben, can you spot me couple Mil? I want to take the family to Europe this summer.

  35. Soren Lanng

    There has always been inflation around, problem today is inflasion is zero or below. It has always been so, better to invest than have cash in the bank.

    You dont adjust the interest rate to defend a currency, you print more money to adjust the interest rate. US about to print 30 trillion $ – if ECB can dot it to save the Euro zone, the FED can as well. So print the 30 trillion $ to finance infrastructure, military, growth and the 20 trillion $ debt – Trump probably will.

Leave a Reply to Greg Cancel reply
