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Bernanke Chat

So he talks to congress today (3/1) and has the nerve to say that if inflation gets to over 2% in the U.S., he’ll be concerned, but it isn’t there now so he’s fine leaving policy/rates where they’re at. Really, Ben? Inflation is under 2%? Oh yeah, in the make-believe, no-food, no-fuel world that he and numerous other economists and Wall St analysts live in.

How is it that the arbitrator of American monetary policy can pretend to ignore the world around him, as he also denies that highly inflationary Fed policy has contributed to the surge in food & energy prices? As well, he pontificates that any increase in prices will be short-lived and not derail the ‘recovery’. You can’t make this up – it’s The Emperor Has No Clothes come to life. “If the Fed decrees there’s no inflation, then let it be so! If the Fed decrees that a lasting recovery is taking place, undeterred by stagnant wages, persistent unemployment, and higher daily costs…then let it be so! Now how do you like my new robe?” 

I don’t think any of the congressmen asked these questions… “What do you think is the significance of the extremely strong precious metals markets lately, even in light of weakness in equity markets? As gold & silver have been money for centuries, does the dollar’s weakness against both precious metals and other currencies worry you, as it portends hard times for consumers? When you finally get around to shrinking your balance sheet, who will be the buyers of the dubious real estate based paper assets that you’re holding…and at what price?”


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