No, it's nothing like that. It's a lot simpler and is just a matter of history and precendent, is all.
yes history...take on fraudulent gambles/risk, lose and then extort a bailout by crying the world will end....rinse repeat...Maybe thats not the history you are pointing to. That's how they get us to follow....by scaring the bejeeesus out of everyone. Just look around ya.
Bernake just does what he has to do. It's pretty much his job to just say everything is ok, and at the first sign of trouble we will print more but make sure we are mindful of inflation etc. What do you expect the guy to do, seriously? The public would go ballistic if he implemented any Volker style strategy anyway- its just not an option. So buy precious metals on dips and look for ways to invest in hard assets- specifically farmland, agricultural commodities and of course energy. Buy the assets themselves not companies that extract them etc. There is no point in these forum posts preaching reform etc- no-one is going to listen. Just protect yourself if you believe there will be high inflation. I have.
"Go ballistic"? We didn't in Volker's time. Why would we now? Besides, a Volker-type of tightening and liquidity drainage is NECESSARY FOR THE SURVIVAL OF THE REPUBLIC. And you Sir, are a DUMBASS POTLICKER for pontificating, "it's just not an option". (You said something REALLY STUPID... not enough to go on my ignore list just yet... but really stupid, just the same. You see... either we acknowledge our debt/deficit problem and voluntarily "take our medicine"... OR... others will SHOVE THEIR MEDICINE UP OUR COLLECTIVE ASSES... Which would you prefer with your "just not an option"?)
Correct. The Volcker solution is impossible due to the massive debt these irresponsible clowns have dumped on the US. Can you imagine what the T-Bond would look like? Lol. Fed has enabled this nightmare to come to fruition by QE to infinity, starting with Greenspan. I no longer have any patience or use for these gangsters. They deserve nothing but derision and mockery.
INCORRECT! BULLSHIT! If a Volker-type remedy is not the solution, what then is? (Here's a hint... a Volker-type remedy has ALWAYS been "the answer"... unless it's acceptable to you for "bankruptcy of the citizenry and a start-over with foreigners picking up the bargains while we become their domestic workers... doing their laundry, cleaning their toilets.)
Maybe saying its not an option was a bit too strong and dramatic I agree. Look don't get me wrong I disagree with the western central bank policies, particularly the FEDs, totally. But I am a realist, unlike all the dreamers on here. Of course it is theoretically possibly for extreme tightening to occur, but politically it is pretty much inconceivable for modern society to accept his kind of short term pain without great outcrys, rioting etc in my opinion. Not many presidents or polititians will have the stomach to take this risk (Ron Paul and a few others excepted). This means it is just very unlikely to happen, not until its too late anyway. I position myself accordingly, rather than ranting on forums in a pointless crusade to change the current selfish attitudes that are rife in the modern western world.
Odumbo want's a $1.6 TRILLION deficit for 2012 budget. TOTAL BULLSHIT! That's totally destructive! We need a balanced budget amendment to the Constitution to throttle these spendthrift assholes.