Bernanke a genius?

Yeah I recall reading that post . You said he was going to ruin the US. How did you know ?

 

I think that the data out there would support the view that China ( as well as the emerging markets ) has had a HUGE impact on commodity prices, but for some reason the Bernanke "bashers" conveniently wish to ignore that.

Go figure.

 

His comment was regarding Bernanke ( and you know that ), not about the FED under Alan Greenspan.

 

Agreed.

I'm always amazed at the economic arguments here on ET. So naively simplistic, with absolutely no consideration of anything else but the value of the dollar.

 

Oh, I see.

There would have ONLY been a Recession had Bernanke not increased liquidity in the financial system. ONLY a Recession, not a Depression.

How simplistic, especially with all of that "blown-up" debt in the system and banks unable to make loans off of healthy collateral.

ONLY a Recession.
Not a Depression.

And you know this because???

 

Commodities soared in Euros, Yen, Swiss Francs etc too.

The money supply increased massively from 1980 to 2000 yet commodities cratered.

Note the huge rise and fall in commodity prices in the last few months, when Fed interest rates have remained totally unchanged.

Clearly the link between commodity prices and monetary policy is not as strong or direct as you claim. There is obviously some influence, but it is not the be all and end all.

 

Could there be two schools of thought on the issue? I can't fault anything you're saying nor Ivan's response. Just a friendly observation.