Bubble ben bernanke says "LOW RATES "WON'T" STOKE INFLATION"

Discussion in 'Economics' started by S2007S, Nov 4, 2010.

  1. S2007S


    Does anyone actually believe what he dribbles out of his mouth, he is lying. Just like he lied about a "soft landing" in the housing market. Its all fucking lies. I cant wait for the day the dollar just drops like a rock to see what his excuse will be then because he believes inflation is tame. He is just trying to convince everyone that inflation remains very low and that the risk of deflation remains, this is so that he can just keep throwing more worthless dollars at the crisis. Bubble ben bernanke will be back on capitol hill answering questions about his monetary policies during this time of the crisis in the next year or so.

    Fed's Bernanke Says Low Rates Won't Stoke Inflation
    Reuters | November 04, 2010 | 06:19 AM EDT

    Federal Reserve Chairman Ben Bernanke, fresh from announcing new measures to support the U.S. economy, said the central bank's aggressive monetary policy will not spark unwanted inflation in the future.

    Bernanke, in an opinion piece to be published on Thursday in the Washington Post, argued that the bigger risks facing the country right now are an unemployment rate that remains too high and inflation readings that are uncomfortably low.

    "Inflation that is too low can pose risks to the economy - especially when the economy is struggling. In the most extreme case, very low inflation can morph into deflation, which can contribute to long periods of economic stagnation," Bernanke wrote.

    The Fed on Wednesday announced it would buy an additional $600 billion in government bonds through the middle of next year, a widely telegraphed decision that has been accompanied by some doubts about its likely effectiveness.

    Opponents of the measure say it is only sowing the seeds of future inflation, a concern Bernanke said was "overstated" because the economy was currently operating so far below its full potential.

    "Even absent (deflation) risks, low and falling inflation indicate that the economy has considerable spare capacity, implying that there is scope for monetary policy to support further gains in employment without risking economic overheating," the Fed chief said.

    Bernanke also beat back worries about whether asset purchases and their effect on financial markets can have a discernible positive effect on U.S. economic activity, which expanded at a meager 2 percent annualized clip in the third quarter.

    By boosting the prices of stocks and corporate bonds, he said, the Fed's bond buying can - and already has to some extent - stimulate the sort of investment that will begin to put a dent on the nation's 9.6 percent unemployment rate.

    "Easier financial conditions will promote economic growth," he said. "Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending."

    Still, Bernanke acknowledged that the idea of conducting monetary policy through longer-dated asset buying is relatively unfamiliar, adding that this has caused the Fed to proceed cautiously.

    He reiterated the notion that the central bank has the tools it needs to withdraw monetary stimulus if inflation looks to be rising too rapidly.
  2. Bernanke: a goldbuyers best friend.
  3. the1


    My monthly expenses are back to where they were shortly before 2007. From 2008 to 2009, and during most of 2010 my cost of living declined but that's no longer the case. The only expense that's still very low is my natural gas expense. Everything else has returned to pre-2007 levels. Inflation is back and it's considerably higher than what the Fed says but that's not surprising. After all, The Great Recession has ended!
  4. Bernanke is correct. There is still risk of deflation. You are obviously wrong. The fact is that he is the chairman of FED, the most influencial organization in the world and you are just a forum poster with no formal training in Economics, no experience in dealing with large scale financial problems and no understanding of all of the factors that affect economic conditions. By the way, same holds for me, I do not pretend to be wiser than you in this respect. So have faith and relax. The FED can withdraw the money from the economy with the same easy it creates it. IMO he is doing the right thing. I understand the bears are getting hit bad by this along with dollar longs and others who speculate. Too bad for them.
  5. Stay away from the Kool-Aid stand.

    Academic economics is largely a joke. It's filled with a bunch of useless math exercises based on worthless assumptions. Inflation is here and very real. Look what commodity prices have done. Forget CPI and other "hedonically-adjusted" measures that strip away food/energy costs.

    Bernanke was horrible in the 2008 crash. His timing for rate cuts couldn't have been worse. If you don't think we could end up with either hyperinflation or a Japan-like situation (which QE can't help), read some history. Stop believing "experts" who know nothing about the real world. The price of gold is a far better indicator than an academic theory from a tenured econ professor who couldn't trade or run a business if his life depended on it.
  6. BS Bernanke has already shown he's quite comfortable with lying about the true rate of inflation. After the 2000 collapse, he kept chirping, "Don't worry, be happy... inflation is only 1-2%"... when it was actually more like 8%.

    In this regard, he's much like Odumba...

    1. He has an agenda

    2. In his mind, "the end justifies the means"

    3. The first casualty is always "the truth"....
  7. Bob111


    and what's wrong with that? leave it alone..let the market find his way..if it's a deflation-so be it.. i just don't get it.. why there is always war on something..every single fucking day..terrorizers,drugs,deflation..once deflation is out -there is will be war with inflation..can you just leave the fucking economy alone and stimulate something else? :p
  8. gucci


  9. You seem to be proposing inaction. I'm going to write my congressman and ask for a new bill declaring "War on Inaction!" We'll start with somthing small...maybe $3 trillion in additional stimulus?

    Once Clinton faced gridlock he clearly became more interested in that other type of stimulus you mentioned.
  10. So you are saying the only possible outcomes of QE is hyperinflation or deflation? How does that make sense?
    #10     Nov 4, 2010