Exactly, so why even concern yourself with anything he says. Ben Bernanke is a sales person pitching what he believes is going to save us from crisis. My point was that listening to Ben Bernanke talk yesterday, last week or three years ago is not going to give you a real picture of what is really going on. Ben Bernanke defending QE2 is a non story and irrelevant. Just like you said... What would you expect him to say..
What the hell does this mean exactly? Be more specific. QE2 is in fact monetization of debt. What Bernanke is doing is intentionally deleveraging American debt by exporting inflation to other countries. This can only be a short term fix. In the long run, this would be more harmful IMO.
Being completely serious, can you explain how we are exporting inflation. Because there is so much cash on the sidelines effective money supply has remained unchanged. When that starts to change the FED can simply sell its assets to keep money supply fixed. The USD is little changed against a basket of currencies since the announcement of QE2. It seems more likely to me that the increase in commodity prices is more related to increasing demand than anything else. I guess I just don't understand your logic. Could you clarify your position for me.
That's my opinion also. We're talking about big numbers here obviously, so I'm not sure any of us has that great a grip on what effect 600 billion has, but I've read enough people I respect who say 600 billion probably wasn't enough. The opposite opinion is held by bloggers who, to me, clearly don't know WTF they are talking about. They have a little but of information and then stand up and shout that know what's going on and have all the answers. They are the types to say the say the Fed is 'stupid' and Bernanke is an idiot. I don't believe them.