Itâs really very simple. If the central banks would stop meddling in the markets, no one would harass them. They are the ones who have decided to play politics with monetary policy, making comments like âwe saved the worldâ at Jackson whole. What a pompous ass.
Well then answer me this - what do YOU think would have happened if the Fed had done nothing during the collapse?
Right the central bank would respond to late, by the time they do respond to this mess were in now it will be too late, asset bubbles have already appeared and there is no stopping them until the next financial collapse comes around again! But Fed Chairman Ben Bernanke Monday played down inflation fears, saying the rise in global commodity prices is likely to be temporary and shouldn't translate into a broader inflation problem. The Fed chief was quick to add that if his prediction is wrong and inflation begins to mark strong gains, the central bank would respond.
agree 100% with the OP there has never been any deflation during the crisis, it was just central bank talk relayed by the media. Core inflation remained positive, but strangely on the downside it's the headline that counts to identify deflation , on the upside only the core counts to identify inflation. Talk about a double standard. Central bankers are liars and criminals and governments and banks are in bed together . Have you ever wondered why lying isn't illegal ?
Article by David Stockman: REENWICH, Conn. (MarketWatch) â Someone has to stop the Federal Reserve before it crushes what remains of Americaâs Main Street economy. In the last few weeks alone, it launched two more financial sector pumping operations which will harm the real economy, even as these actions juice Wall Streetâs speculative humors. First, joining the central banking cartelsâ market rigging operation in support of the yen, the Fed helped bail-out carry traders from a savage short-covering squeeze. Then, green lighting the big banks for another go-round of the dividend and share-buyback scam, it handsomely rewarded options traders who had been front-running this announcement for weeks. Indeed, this sort of action is so blatant that the Fed might as well just look for a financial vein in the vicinity of 200 West St., and proceed straight-away to mainline the trading desks located there. In any event, the yen intervention certainly had nothing to do with the evident distress of the Japanese people. What happened is that one of the potent engines of the global carry-trade â the massive use of the yen as a zero cost funding currency â backfired violently in response to the unexpected disasters in Japan. Accordingly, this should have been a moment of condign punishment â wiping out years of speculative gains in heavily leveraged commodity and emerging market currency and equity wagers, and putting two-way risk back into the markets for so-called risk assets. Instead, once again, speculators were reassured that in the global financial casino operated by the worldâs central bankers, the house is always there for themâthis time with an exchange rate cap on what would otherwise have been a catastrophic surge in their yen funding costs. Is it any wonder, then, that the global economy is being pummeled by one speculative tsunami after the next? Ever since the latest surge was trigged last summer by the Jackson Hole smoke signals about QE2, the violence of the price action in the risk asset flavor of late â cotton, met coal, sugar, oil, coffee, copper, rice, corn, heating oil and the rest â has been stunning, with moves of 10% a week or more. TRADING STRATEGIES: MARCH Trouble ahead? Japan's crisis, turmoil in Europe and unrest in the Middle East have investors worried that weâll all be thrown back into the throes of global recession. In the face of these ripping commodity index gains, the Fedâs argument that surging food costs are due to emerging market demand growth is just plain lame. Was there a worldwide fasting ritual going on during the months just before the August QE2 signals when food prices were much lower? And havenât the EM economies been growing at their present pace for about the last 15 years now, not just the last seven months? Similarly, the supply side has had its floods and droughts â like always. But these donât explain the price action, either. Take Dr. Cooperâs own price chart during the past 12 months: last March the price was $3.60 per pound â after which it plummeted to $2.80 by July, rose to $4.60 by February and revisited $4.10 per pound. That violent round trip does not chart Mr. Marketâs considered assessment of long-term trends in mining capacity or end-use industrial consumption. Instead, it reflects central bank triggered speculative tides which begin on the futures exchanges and ripple out through inventory stocking and de-stocking actions all around the world â even reaching the speculative copper hoards maintained by Chinese pig farmers and the vandals who strip-mine copper from the abandoned tract homes in Phoenix. The short-covering panic in the yen forex markets following Japanâs intervention, and the subsequent panicked response by the central banks, wasnât just a low frequency outlier â the equivalent of an 8.9 event on the financial Richter scale. Rather, it is the predictable result of the lunatic ZIRP monetary policy which has been pursued by the Bank of Japan for more than a decade now--and with the Fed, BOE and ECB not far behind. Thinking beyond the Fortune 500 for women Claudia Goldin tells WSJ's Alan Murray that women are making their way to the top at many Ivy League schools. Plus: Saadi Zahidi of the World Economic Forum discusses how women in foreign countries are contributing to their nations' economies.
Wow, I'm glad there are omniscient folks here who know exactly what would've happened had Messiah Ben not stepped in. Seeing how awful Bernanke was in the 2007-8 crisis, though (denial of sub-prime problems, panic interest rate cuts over a trading snafu in France, etc.), it's hard to believe he's improved so much in a few years.