So this was it. The week where a Federal Reserve Chairman finally stepped out of his ivory tower and came down to speak to the unwashed masses.
Specifically, the Federal Open Market Committee didn’t just release a post-meeting statement on the economy Wednesday. Ben Bernanke later trotted out in front of the microphone, made some comments on the economy, and then took questions from the press for about an hour.
How’d it go? Well, he didn’t put his foot in his mouth or trip walking up to the podium. But he did once again show that he’s completely out to lunch on inflation, the dollar, and his role in destroying our standard of living.
Look, there is no doubt in my mind — zero — that the Fed’s interest rate and easy money policies are a huge reason the dollar is cratering and commodities are soaring. Yet Bernanke kept trying to blame things like geopolitics and emerging market growth for those market developments. And while he said that monetary policies aimed at controlling inflation are good for a country’s currency, he refused to adopt any such policies!
If there’s one thing Bernanke DID get right, it’s this: When a Fox Business reporter asked about S&P’s recent downgrade of America’s sovereign credit outlook, he replied:
“America has a very serious long-term fiscal problem … the fiscal deficit is simply not sustainable, and if it’s not addressed, it will have significant consequences for economic growth and our financial stability.”
But again, by essentially monetizing the U.S. debt and buying 85 percent of the Treasuries the government is issuing, the Fed is enabling the government to continue to run those very same deficits!
Can you believe this guy?
Saying Something Louder, and More
Often, Doesn’t Make It True!
Openness is great. I’m all for transparency. My problem with the Fed’s approach is simple:
Bernanke thinks it’s the DELIVERY of his message that’s at fault. He thinks if he can just give more speeches, release more statements, and be more open by taking questions from the press four times a year, then people will understand the Fed really does know better than them. That, gosh, Bernanke really is on their side.
But what the Fed has been doing is NOT helping the average American. It’s helping hedge funds, speculators, and investors … at the expense of people who don’t own stocks and are just trying to keep food on their tables or gas in their tanks.
Just consider: Since last August, when Bernanke laid out the case for QE2, crude oil prices have risen 59 percent. Retail gasoline has surged from $2.69 per gallon to $3.88 per gallon. Cattle has gained 18 percent in price, wheat has rallied 26 percent, soybeans have jumped 40 percent, and corn has skyrocketed 92 percent.
On Wednesday gold hit the highest level in history — $1,530 an ounce — while silver prices have exploded 172 percent. Meanwhile, the broad Dollar Index has collapsed to its lowest level in 32 months, and its lowest level in history against sound-money currencies like the Singapore dollar and Australian dollar.
Inflation expectations? The ones that are supposedly tame, well-anchored, “well stabilized” or whatever the Fed wants to call them?
Well, Americans polled by the University of Michigan now expect inflation to run at a 4.6 percent rate over the next year. That’s up from 2.7 percent last August. The broader Conference Board survey for April showed inflation expectations for the next year surging even higher — to 6.3 percent from 5 percent.
Lastly, what about those struggling homeowners and mortgage borrowers? The ones who the trillions of dollars of QE2 — as well as FHASecure, HAMP, HOPE NOW, etc. — were supposed to help? Or bondholders, who were supposed to see higher bond prices and lower interest rates?
They’ve gotten two things from QE2 — jack and squat!
The evidence? Long-term Treasury futures have dropped 11 percent in price, while 30-year mortgage rates have climbed to 4.8 percent from 4.36 percent since last August.
New home sales, existing home sales, and construction activity have essentially gone nowhere for the past couple of years, while the 20-city Case-Shiller housing price index just fell to 139.27. That’s a measly 1/100th of a point away from the February 2009 low, and down more than 6 percent since Bernanke’s hard sell for QE2 last August.
If This Is Success,
I’d Hate to See Failure!
The Fed seems to think we out here in real America just don’t get it. That’s why Bernanke is being more open on the communications front.
But the simple reality is that Bernanke is destroying the value of your dollars. He’s helping drive up your cost of living. He’s forcing seniors to take their hard-earned dollars out of safe investments like CDs and plow them into things like junk bonds.
Meanwhile, he has driven interest rates UP, not down. And his policies have been a total, utter, dismal failure when it comes to re-energizing the housing market.
Or in simple terms, if this shows that QE2 has been a “success” like some economists say, I’d hate to see failure!
You have only one choice in this environment, folks. You have to take things into your own hands as long as Bernanke and the rest of the Fed is going to get things dead wrong on the monetary policy front.
Consider buying gold and shares of companies with higher yields than Treasuries and a large percentage of overseas revenue. Buy currencies, stocks, and short-term bonds of countries with better economic growth and monetary policy.
And please, if you haven’t watched it yet, check out the American Apocalypse presentation we’ve just put together. It goes into much more detail about the issues I’ve presented here — and gives you concrete, actionable advice on what to do to protect yourself and profit in this environment. Click here for more.
Until next time,
Mike
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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Hey I love this bloke !! …I live here in Australia and i look forward to going to my email box and finding an email addressed to me from Mike Larson I have taken his advise on board and in fact have a very large stock of GOLD and SILVER ..thanks to Mike…So thank you Money and Markets…..Danny …..
The Fed is stuck in its own trap. If it raises rates, the US government defaults when it has to roll over its gargantuan debt. If it keeps rates at zero it will allow the stealth default of the US. Of course it will shred the dollar and ignite inflation like Weimar Germany. I think that is their plan. That will take America out as a power for awhile so they can convince us that what we really need is a new international money system run by them. Oh they’ll tell us the SDR, the special drafting right, at the IMF would be the greatest thing for world economics since the US gave our sovereignty to the Federal Reserve. All our problms will be solved. Huzzah, huzzah.
The proper way to deal with this debt crisis is for the US to revoke the Fed’s monopoly on issuing legal tender. Have the US issue our own currency again by and for ‘We the People’ not ‘Me the bankers’.
AMEN BROTHER!! This is the master plan from the men behind the curtains, it is a ‘conspiracy'(Yes I said that word)…….and the END of the Good’ol USA as we know it will be the results!!!
Right on, brother. The Fed has owned this nation since 1913 when it was created by a bought off Congress and perpetuated down to the present with the goal of reducing this once productive nation and people to Third World staus to be merged into a one world government ruled, as now, by the shadow government of megaBankers. It would be nice if the people could take back their government, if in fact it ever was, but it is not likely. The socialists are driven to save us from ourselves.
why not move wall street to vegas where it belongs!!
I have enjoyed reading your articles for a couple of years now however of late you all sound like the conservative talk show wackos. Nothing but criticism over and over and over. You guys don’t like Obama or anything or anyone connected to him. It is never the fault of the greedy, corrupt financial industry or guys like your self who only look to profit from selling newsletters. Please offer solutions, helpful opinions…anything but the constant ranting. I can listen to the radio if I want to be depressed all the time.
Go back to watching America’s Idol and Dancing with the Stars. You are clueless.
I agree with ed!
Ed and Broomy simply are paying attention or they would agree with the conservative talk andthe criticism of Obama and the Federal Reserve. The majority of the US public may not be very sophisticated about politics and economics but they are rightly scared and angry. We can be saved but it won’t be easy. The groundwork for our destruction was laid in 1913 but the real progress began with the putative Republican Nixon and was given a tremendous push “forward” by Carter..TheConstitution-despising Obama has been allowed to wreak havoc I previously thought to be impossible in such a short time.
Ed, I too am tired of bad news on every front. Let’s do something good for a change that will make a difference in our great country. I think however the trumpets must blow to awaken the masses, for most are unaware of the devistation ahead. With an approaching storm you first must see the need to prepare, then one must be educated what type of prearations that need to be made. Listen to pros and cons on this subject then make the proper discisions. My conclusion is…. WE’RE IN DEEP POOH POOH!!! Prepare yourself!
Bernanke is either the biggest “fool” that has ever chaired the Federal Reserve or he is bought and paid for by the elite power brokers. His policies have and will bankrupt America as a Nation. There are more forces at work here other than financial policy.
I am convinced that the “Power Brokers” want a two class system in the United States…the poor and the rich. They do not want a middle class and they are rapidly doing away with them. .We have. opened up our bourders to .ilegal aliens by the semi-truck load. They addmit to 10 million, you can bet it is 20 million illegals.
Cheap labor is all the power brokers want, and the can drive down wages and do away with the middle class all at once. Sounds like a plan to me.
I see hard times in our future with riots, marshal law and food shortages. Sad but true.
BINGO!!!……..It’s truly what’s happening!!! And I’ve said for MANY MANY years now that since the 60’s ‘our'(?) Government and HUGE Multinationals have ‘design’ the HUGE influx of 3rd world workers for ALL the reasons you state! But number 1 is develop a cheat labor source in America and DESTROY the very expensive work force called the MIDDLE CLASS!!!
It is truly painful to see these illegals taking away such high-paying jobs as lawn mowing, lettuce picking, meat packing, housekeeping and countless similar ones that the middle-class families have traditionally relied upon for a living. No wonder their wages are being driven down.
But look at the brighter side. Instead of marshall law, we could have seen martial law down the road which is even worse so things are not quite as bad as they might seem.
Right on bro. In Australia we are getting this plea from the developers and multinationals to bring in Chinese labour. You see, here we have a 5% unemployment and some really good social service payments for those who know how to get it. As we are a big island, it is hard for anybody to just come over and get a job, so the government is being bullied to make allowances to get all this cheap labour as when the US and Australia built the railways.
The purpose of the FED today is to crash the dollar to bring on a New World Currency. That’s the plan. The New World Order folks cannot allow the dollar to go back to save it’s reserve currency status. Bernanke answers to the international banking cartel. Not to congress, not to the president (if you can call Obama a president) or any higher authority than the banking cartels. We do not live in a world of free banking markets any more. That ship has sailed. There’s nothing federal about the FED, so the FED must be ended. Support Ron Paul for president.
Thanks again for your participation in contributing to our (forced) Treasury buying program. Since you do not give us more money to spend volunteeringly we will now take it from you by printing more dollars.
Bernanke knows better, but he is just the puppet.
Since when does someone with any democratic authority trot out and pretend he is president or emperor? I’d fire the b*&tard if I were Obama – well if the elitists would let me! Such shenanigans totally undermine the political system and the sense of government control. For decades banks followed the 3-6-3 rules: Borrow money at 3%. Lend money at 6%. Get on the golf course by 3 p.m. Today their “leader”, the CB chair has stepped into the emperor’s role – appear before the shepole, calm their nerves and then return to “central planning”. If he looks like an emperor, acts like an emperor …
I am in complete agreement. The Fed needs to be ended. This banking cartel does not benefit the masses, only themselves and their cronies. They operate under the guise of the politicians and financiers at the expense of the taxpayers bailing out their poor on-going decisions and manipulations. History teaches us that the Fed (and their money policies) causes the booms and busts and that inflationary policies have NEVER ended in the favor of the citizens of any country. But the taxpayers do take all of the losses and reduction in savings and buying power. These are the real crimes against humanity that go back centuries but are unseen and unspoken. Our citizens need to be awakened about the ongoing Federal Reserve threat (educated as to banking and money) to our prosperity and standard of living. They can’t be allowed to create money with no underlying value (needs to be tied to a gold standard and wealth creation policies) to propogate this welfare state of governement and banking. Banking is the unspoken welfare state of massive bailouts and unsound money. And facilitates unsound governement policy.
I disagree. We will see over time. If employment picks up tax revenues will increase and the deficit will be pared. The value of a country’s currency is determined by what it will buy. The US produces a lot of goods and services and can produce at lot more given the slack of high unemployment and under utilization of capital. Inflation in the price of oil, gold, commodities is the product of increased demand and shortages brought on by weather, hoarding and insufficient out put. The United States is still the biggist economy in the world. I don’t think the business cycle ceased to exist.
Why in the sam heck is our wonderful government so uninformed that they do not realize how many millions of 1ST Time Buyers we have out sitting on fences, unable or unwilling to get their first home because of the stringency of the credit scores/ratings, and or HOW to get their first downpayment. NSP has been a good help, and in Ga we have downpayment assistances in certain more rural areas, and there are a couple of “hidden” programs., which are a royal pain., but well worth the
twinges of pain. What they also need to be aware of now, is that they can save up to 50% on their homes and build equity for the future. 1ST TIME BUYERS can RUN the market., they make everyone else “able” to move forward. How hard is this and why isn’t it being addressed, marketed and fulfilled. By the way, they didn’t cause this mess………….they had a low rate of foreclosures in relation to some other groups.
I care. Let me know if I can help YOU. Buyer’s Agent.
If inflation is such a big problem then the smart investor would invest in real estate, the quintessential hard asset. Especially with prices lower than they have been in years. But is that what’s happening? No. Housing continues to tank. So my quesiton is, and I’ve asked this before of the inflationistas and not gotten an answer, if we’re on the brink of hyper inflation, why does the housing market continue to tank?
Mike, You guys talk about Bernake like he is stupid and dose not have a clue what he is doing. You are the ones that are not to smart. Have you ever considered that Bernake knowes exactly what he is doing. You should be asking yourself why he wants to destroy the American economy. It is all about the new world order. Americans will never move into a one world government aka new world order unless the economy is broken first. Look at all the things that are building toward it. The need for positive identification. Currancy manipulation, etc. You think you are ahead of the game and Bernanke is behind. You are behind and Bernanke is way ahead of YOU.
The FED is trying something new to get out of its trap. He lets the Dollar drop and drop until the foreigners, i.e. CB’s of countries holding $ pick up the slack. It looks like the plan is to leave it to them, to do the QE 3 hauling. Its a game of chicken. Meanwhile, at least, bankers, investors, speculators, farmers, Miners, exporters, Co’s with international revenues are making good money. This money might just find its way into the general economy and, may be, produces a growth story and stimulates the US economy. Besides, he will mark a new low for the $ index, which is easy to climb from later. Until the foreign CB’s blink, or the Euro and/or Yen crash or China removes its $ peg. How much lower? Why not 50% – its up to “them”.
Now, I think this plan would be a crazy gamble, but what options remain. The big looser will be the working class and working middle class – until, or better if, this plan produces positive results for the US economy…until then, you all know, what to do…or listen to people like Martin.
You talk about Bernake as if he is completely stupid and blind to what he is doing. Boy does he have you all fooled. He knows exactly what he is doing. The thing you need to be asking yourselves is why is Bernanke destroying the American economy on purpose. The answer is Americans will never submit to a “new world order” aka , one world government unless the independent American spirit is broken first. We are still the most powerful force on the planet. Look all around us. the case for the need for a one world government is building from every direction more every day. Positive identification, currancy manupliation, etc. You are so sure you know what is going on but the fox is out smarting you.
You are correct in your assesment. I would add that GUN control is also part of the equation. Scary times. Like living in the time when the Roman empire died. Are the Dark Ages ahead for us?
The “Federal” Reserve is a Constitutionally CRIMINAL and TREASONOUS, mafia style organization. Part of the IMF, and the CONTROLLERS of our “economy”. CONSTANT Lies, Market MANIPULATION, Gold-man Sachs, controlled media. Article 1 Section 10 of the Constitution reads… “Only gold and silver shall be used”… Made-up FIAT money= UNLIMITED $$ for THEM, ALL paid for by US!!! That’s the SCAM! SLAVERY for the QUEEN, is ALIVE and well! I wish people would wake up and TAKE back OUR country (which was FORMED because of MONEY btw-You know-ROYAL screwings and all that!) Money is a STORE house (a battery) for ENERGY. When your battery is being DRAINED constantly, you should find out WHO is doing the draining, and UNPLUG them! Legalize FREEDOM and SOVERENITY!
Emperor Bernanke? Makes you wonder if our country is being bought out by the FED. It could also be a military coup from the industrial-military complex of our country, which spends more money on weapons than every other country in the world combined. The Generals will lose if their budgets get cut. So instead, education budgets get slashed to keep the populace dumb, the funding is slashed for any media outlet that speaks the truth like NPR, and finally the attacks on the unions which represent hard working Americans. It may sound crazy but there is obviously a lot more going on here than we can ever imagine.
Are Americans ever going to wake up to the fact that every time the Federa Reserve turns on the printing press they are stealing. The deluting of the dollar is just a way of transfering wealth from one group of people to another. All the past presidents have done it but the Obama-Bernanke gang have come out as the bigget theaves of all time.
PS: Before you sink your life savings into commodities, just remember all of the lemings who bought into the tech bubble and the real estate bubble. The commodities bubble is going to pop too. We are headed into a double-dip recession. Remember that just three years-ago during the height of the financial collapse, silver crashed to about $6 an ounce. Get out now.
Mike,I have to agree with some of the criticism you are getting here.Everyone with a brain can see what Bernanke is doing,so you don’t need to remind us of that.There has to be a reason both Bernanke and Greenspan have operated the same way.I believe they both were just doing whatever was necessary to keep the Titanic afloat a little while longer.These bubbles(first tech,then housing and now commodities) were necessary to give the illusion that the country is growing.The average American doesn’t understand economics,incentives,etc.They just see the surface and need these illusions to keep the faith.I think the best thing for an individual,since you can’t change the trend,is just take care of yourself.You can’t save the country from the ignorance of the majority.Just hope all these ignorant Americans don’t decide to take whatever you have for themselves.I see a lot of posts on the internet about taxing the rich and maybe you are in that envied class.
The only way we the people can regain control of our country is to destroy the political machines called the Republican and Democratic parties by absolutely refusing to vote for either one and write in names. Even if it makes a complete mess of things so what! It is already a complete mess and they are destroying America. Something drastic has to be done. The lobby system needs to be criminalized. It is nothing but legalized bribery. The committee system in congress needs to be destroyed. It is just a power grab strangle hold on congress by ruthless people. The idea of junior and senior congressmen is rediculous. Congress is not a union where members build seniority. Each congressman represents a soverighn state. That is just for starters. We need revolution in this country.
Excellent…don’t forget that we need to revolutionize the banking system from all of the corrupt money behind the politicians.
Here is my predicton on gold and silver. All this is going to lead to a currancy crash. When that happens, a new one world currancy will be created to solve everyones problems. Limits will be set on the price gold and silver can be converted into the new currancy. 10 thousand dollar an ounce gold so what! There goes the safe haven for wealth. People will only be allowed to convert Gold, by law, into the new currancy at say,$35 dollars an ounce.
@Bob, do you really think the Feds could pull precious metals control off this time? Even if there are still millions of people who are unaware of history and current plays, there are now millions who are aware. It’s a far different environment, partly because of the Internet free market of information and news – still relatively free anyway if you know where to look and have good critical thinking skills. The righteous indignation of the American people is an awesome thing…I only pray that out-of-control emotions do not turn into violence because that would totally backfire. Education and understanding are key. Money & Markets and other open discussion forums play an important role. In the end, as it should be, individuals are 100% accountable for what they believe and choices they make. When people accept that, they become a powerful impetus for a wider population. Tipping point or whatever you wish to call it.
Sandra–I also pray that out of control emotions dont turn into violence. We are indeed in perilous times, and for many reasons. I think the best any of us can do is to pray, prepare, and endeavour to be the best influence we can be
Bob I suspect the same, so there must be a bell-out point. Figuring where that is is the trick. I’m thiking there will be a period between crash and reorg when gold and silver will be used to barder and trade. I’m talking worse case senario here like in the movies!
Bob Dowell says
Everyone is going to accept another fiat currency after a fiat currency crashes?I don’t think so.
Bernanke is very much awake and proceeding with his (and Obama’s ) agenda which is to wreck the US currency? economic system . Those who believe his agenda is otherwise should “wake up”.
Because you have the resources and, I assume, the inclination to do so, would you give your opinion on who benefits from the policies being put forth by Bernanke. I suspect there is more than meets the eye here concerning who is influencing his decisions. I, and I think many of your readers, would like to hear what you have to say.
There are secret combinations at work behind the scenes all over the world and The US GOVT is not exempt. Corruption is rampant and the top echelon are doing deals and feathering their own nests and siphoning off the $’s to their own interests. F U. Do you believe that they care about you?. You’ve gotta be kidding.
The Revelations of John Chapter 13 and 17 gives us a pretty good idea of these Prophecies currently being fulfilled. Check it out.
If we stop stoning the Prophets and change our attitudes and “search the prophecies” we will realize that there is ” nothing new under the sun”. What is being done has already been done.
Jesus Christ lives and is the Savior of the World and not Ben so if we turn to Christ and follow Him and keep his Commandments we will be ok “no worries”.
Like He said ” You cannot serve God and Mammon”.
I don’t pretend to understand such mind boggling… yet.. historically reoccurring like a broken record.. world.. Idiocies? lol
and.. I expect.. even after this monstrous wheel of stone.. has steam rolled America.. and many others.. into a new Currency.. It will just happen again… lol
One MUST look at the lighter side.. yet I feel the pain of every soul.. who has worked lives away.. to watch in horror as life savings… and futures vanish into chaos… oops.. a bit dramatic there.. I am Canadian ey!
Yet.. am poor.. disabled.. have time NOT to spend in front of TV.. but wrap his mind around.. what really matters.. and guys… its you… every one of you… so share a hug… raise a cheer.. enjoy NOW.. just a little more… if you can… times are getting tough.. something is going down.. we all feel the prickles up our necks… the… instincts.. of decency.. respect… faith!
Around and around it goes… and it goes… wherever man goes.. lol
Ben keeps printing money to keep the liquidity high. He said he didn’t think there would be a QE3 because the market held up well after QE2..interesting/good news.
1) Look at Alcoa, Cat etc. – our weak dollar is making these companies millions because they export, to which Ben hopes will continue to grow and pull our economy out of its quicksand
2) Reserve currency – honestly where are you going to go? China, you really think countries want to put their money into a communist country just coming out of the stone age? The Euro – the PIIGS hurt but the EU has put money aside for them – the real wild card is Spain. If Spain goes – look out as it will be a big poop sandwich.
I agree with Mike et al because I have been investing in gold, oil etc but it is not the only scenario that can/will play out.
Here is the problem, stated by Noah Webster.
“When you become entitled to exercise the right of voting for public officers, let it be impressed on your mind that God commands you to choose for rulers, “just men who will rule in the fear of God.” The preservation of [our] government depends on the faithful discharge of this Duty; if the citizens neglect their Duty and place unprincipled men in office, the government will soon be corrupted; laws will be made, not for the public good so much as for selfish or local purposes; corrupt or incompetent men will be appointed to execute the Laws; the public revenues will be squandered on unworthy men; and the rights of the citizen will be violated or disregarded. If [our] government fails to secure public prosperity and happiness, it must be because the citizens neglect the Divine Commands, and elect bad men to make and administer the Laws.” -History of United States by Noah Webster.
ssource: http://www.lexrex.com/bios/nwebster.htm
Thank you for summarizing the insanity of The Fed and Ben Bernanke.
The US Fiscal policies have been broken for a long long time. JFK knew this and tried to warn the people of America. Every President with the help of Congress has helped create the issues and situation that the USA now finds its self in
Those who are reading this know the truth and the most likely outcome. The sad thing is that those who remain financially ignorant will be wiped out.
For those who want to learn more you can click on my name. It is my friend who who has created a great video on the 7 steps to the failing system of fiat money and the opportunity to make money as Ben Bernanke and The Fed continue to do the short term solution of simply printing more more fiat money.
Bankster speaks with forked tongue!
The Fed is buying 85% of the Treasuries sold? That number seems a bit high as I thought that a lot of the treasuries auctioned were roll-overs from previous owners.
I believe Mike Knows, what is up Bernankes Sleeve, the deliberate destruction of America… What I also believe, Mike Knows he would be Lopped into the Classification of a Nutjob ‘World Conspiracy Theorist’ by the Media, If he was to start suggesting that is what Bernanke (and Fraud St) is trying to do…
It is like being a Cop, having Gut Feelings and Physical Evidence are two different things.
I believe there is a Secret Club, Hellbent on Ruling the World, not just America or Europe.
That is my Gut Feeling, but I Cannot Prove this Feeling.
So, One has to Stick to Facts, or be labeled a Kook.
Mike is being Smart, by putting the Facts out there, without coming across as a Nutjob.
Keep Up the Great Job Mike!
Senator Charles Lindburgh Sr. (father of the famous aviator) wrote an excellent book back in 1913 (shortly after the Fed was established) illustrating quite effectively what a royal scam it was. Did anyone listen to him? Is anyone listening now?
There may be a few more people listening now, but not nearly enough.
The Fed was established in 1913 ostensibly as a reaction to the market crash of 1907 and was “marketed” to the public as a way to prevent wild fluctuations in the economy and, specifically, stock market crashes (!). Hmmmm… Guess what happened in 1929 (just 16 years later)? So much for that mission… Since it was so successful at preventing stock market crashes (not!), they of course decided to allow it to continue (apparently forever!).
Of course, that was never really it’s purpose, anyway. Just another example of the cure being worse than the disease. That’s the way it always works with the corporate-controlled government.
Read “The creature from Jekyll island” by G. Edward Griffin. If the real story of the Fed doesn’t turn your stomach, nothing will.
A race to the bottom. Remember: There is no such thing as “too rich” nor “too cynical”. Abide by this principle, profit, and understand. Good Luck!
don’t know why my first comment was deleted….here is try 2
I agree with Mike that commodities will continue to run but I am also looking at a different side.
1) Money printing is killing the dollar but the only way to pay off the deficit is with worthless dollars and this liquidity has kept the system running. The falling dollar is a huge advantage for American companies that export. Look at Alcoa and Cat for examples. They are killing it because of their export advantage now with the dollar and Ben hopes that this increase in earnings will allow companies to start to hire and get our country’s economy heading in the right direction., oh and what does the stock market look at – earnings!
2) Reserve Currency – while it may eventually lose the reserve status- really where are countries going to go? China..do you really think that governments are going to feel comfortable putting their money into a communist country that is just coming out of the stone age (basically)? Euro? They have so many problems and IMO the biggest is Spain. The PIIGS were the first shot but if Spain goes then watch out!!
Agree or not Bernanke is following his method that he believes will pull us out. I just like the fact that you can make money despite what he is doing and you pay attention as an investor.
I forgot to proo read my last note. It should say Ed and Broomy are not paying attention.
Hey Mike , wake up!! The Bernank is doing what he is paid to do. If he worked for me I would give him a raise. He works for the Big Banks, not for you. The Fed is owned by the Banks, not the US Government. Start reporting the news as it relates to how the Big Banks will profit, not the taxpayer. Who does Little Timmy work for? The Treasury or Goldman Saks? Where will he go after the job at the Treasury?? Back to G.S.
I am 80 years old and I don’t believe I have ever heard of an “HONEST POLITICIAN” !!!
The two words just don’t fit !!!
This so called, President we have now came from OUTER SPACE!!!
We don’t even know where he came from???
Did he come from the U. S. A. or did the Devil send him????
I disagree with views of Bernanke, Geithner, Obama et al. being finacially retarded yo-yos. They are highly intelligent people, doing exactly what they are supposed to do – i.e. to be running dogs for the powers that put them on the throne. And they preach what they are supposed to preach.
Unless there is a military coup that would sweep away Federal Reserve, Wall Street and the core of the military-industrial complex, the U.S. have little chance of ever pulling out of the predicament it’s now in. But trouble with revolutions is that they usually replace one bloodsucker with another one.
Also, God will not save America – for that he would first have to exist! Amen , figuratively speaking.
A number of years ago a series of books called “left behind” was published. In light of today’s world situation it would be interesting to compare its text with today’s world.