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The Fed chief's second day before Congress was rife with doublespeak and, quite frankly, it sounds like he's scared. Beginning with his comments that it's not inflation, but maybe stagflation, Bernanke shrugged of the notion that were seeing a repeat of the economic woes of the 1970's.
Compared to the 1970's, today's economy is downright scary. Is Bernanke hiding something, is he trying to avoid a panic? I'd say a little of both, considering the ominous warning today that we can expect bank closings See Article Below.
What's scary are the indicators. Yesterday's mere mention of a rate increase sent commodities up and the dollar down. These same indicators are through the roof, it's the perfect storm for disaster.
Obviously there's some market manipulation going on, but it seems like the sheer inertia of world financial pressures are taking their toll, and it is now unlikely that the manipulation of asset and debt prices can cover up the obvious - the worlds greatest economists would know that the loosening of credit, the influx of fiat currency, and the selling of debt as an asset and using debt to sell debt would ruin the US economy.
In fact, Bernanke admits as much when he acknowledges that "in this case the consumer is taking the brunt of the effect,” Link To Article Here and these comments echo sentiments the Fed, former Fed Chairman Alan Greenspan, and others have been saying for some time, that the goal of US economic policy, as President Bush stated in 2003 is "the orderly decline of the dollar."
Of course the wealthy know what's happening to their money, and major investors such as Warren Buffet and Jim Rogers are quietly shifting their assets out of dollar backed investments.
For the rest of us, there's always bugs and bread lines.
Compared to the 1970's, today's economy is downright scary. Is Bernanke hiding something, is he trying to avoid a panic? I'd say a little of both, considering the ominous warning today that we can expect bank closings See Article Below.
What's scary are the indicators. Yesterday's mere mention of a rate increase sent commodities up and the dollar down. These same indicators are through the roof, it's the perfect storm for disaster.
Obviously there's some market manipulation going on, but it seems like the sheer inertia of world financial pressures are taking their toll, and it is now unlikely that the manipulation of asset and debt prices can cover up the obvious - the worlds greatest economists would know that the loosening of credit, the influx of fiat currency, and the selling of debt as an asset and using debt to sell debt would ruin the US economy.
In fact, Bernanke admits as much when he acknowledges that "in this case the consumer is taking the brunt of the effect,” Link To Article Here and these comments echo sentiments the Fed, former Fed Chairman Alan Greenspan, and others have been saying for some time, that the goal of US economic policy, as President Bush stated in 2003 is "the orderly decline of the dollar."
Of course the wealthy know what's happening to their money, and major investors such as Warren Buffet and Jim Rogers are quietly shifting their assets out of dollar backed investments.
For the rest of us, there's always bugs and bread lines.
